Paul Jenkins, the senior Deputy Governor at the Bank of Canada has joined Flaherty and Carney in declaring that there is no Canadian housing bubble. So many officials seem so desperate to make comments about this subject right now, but why are they so desperate to reassure us? Of course there is no Canadian housing bubble, just look at house prices in Windsor. What I’d really like to hear them say is that there is no housing bubble in Vancouver, then we could all relax.
The federal government said last week it will bring in new mortgage rules to cool the housing sector and prevent home buyers, tempted by record low interest rates, from overextending themselves.
At the same time, it said there was no housing bubble, a point echoed on Monday by Jenkins, who was speaking at a panel discussion at the Government of Canada and Financial Times Global Business Leaders Day in Vancouver, where the housing market is especially hot.
“At the moment, we are certainly seeing a certain amount of the recovery in the Canadian economy coming from the housing sector” he said.
“I would certainly not say we are looking at a housing bubble,” he added.
Article in the Vancouver Sun.