Category Archives: prices

Bank of Canada warns of housing market vulnerability

The bank that cried wolf: Housing market vulnerabilities are still high.

Vulnerabilities in the Canadian housing market are still high despite rising interest rates and tighter mortgage rules, Bank of Canada Senior Deputy Governor Carolyn Wilkins said on Thursday.

It also released results of a model it said showed Canadian banks’ capital positions would not be affected by a 20 percent correction in the housing market, with the biggest declines in Toronto and Vancouver.

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Runaway market taking ‘a breather’

As you may be aware it is always a good time to buy or sell real estate according to most real estate professionals who earn their living by buying and selling real estate.

Well right now it’s a great time to buy or sell real estate because the runaway market is taking a breather.

It’s a “soft landing,” according to Royal LePage CEO Phil Soper, who says their latest house price survey shows the effects of government measures to cool things down.

What were previously called the “dangerously overheated” conditions in Metro Vancouver housing have cooled significantly, but prices have remained resilient.

He says it’s the soft landing policy-makers had hoped for, rather than a crash.

“But it won’t stay this way for long. Household formation in Canada… is going to grow rapidly,” he predicts.

Read the full article here.