- By Mike Heddle
- Posted Monday, Apr 12, 2021 11:35 am
As Canada’s home prices reach the stratosphere, calls on the government to bring the housing market back to Earth — possibly with a soft landing — are growing increasingly urgent.
Some of Canada’s big banks have recently joined the chorus.
“Overheated markets threaten to destabilize the economy down the road if or when a correction occurs, with possible heavy costs for governments,” Robert Hogue at RBC Economics has warned in a note to clients.
Policymakers should act “immediately” to address soaring property valuations before “the market is left exposed to more severe consequences,” BMO senior economist Robert Kavcic echoed in a similar report.
The average price of a home in Canada has climbed an eye-watering 25 per cent to a record ...[MORE]