Vancouver’s housing market is headed for a ‘bumpy landing,’ economist says
|11/26/2018||Posted by BusinessMediaguide.Com under General World News||
“The upshot of all this is that there are numerous reasons to think that Vancouver house prices are more vulnerable to a correction than those in Toronto,” Brown added. “Because of that, there is greater reason to think that the regulation-induced downturn in sales will be sustained and will lead to a drop in house prices.”
Canada’s central bank, which has raised interest rates five times since last summer, has been closely watching the housing market. On Thursday, Bank of Canada senior deputy governor Carolyn Wilkins said risks are still elevated despite higher borrowing costs and and stricter mortgage rules.
“The vulnerabilities are down but they are still high,” she said at an Ottawa conference hosted by the Canada Mortgage and Housing Corporation.
- Following new mortgage regulations and higher rates, Canada’s most expensive housing markets have slowed sharply this year.
- The housing market in Toronto has showed signs of stabilization in recent months.
- But Vancouver may not be headed for a similarly soft landing, economists say.
As Canada’s housing market cools down, economists say some of its once-booming cities look poised for uneven corrections.
Canada’s housing market has cooled since new mortgage regulations aimed at reining in demand and risky lending took effect at the start of the year, with national sales falling 3.7% from a year earlier in October. Toronto appears to have stabilized in read more >>>