Starting to feel the heat
Home sales and home prices are breaking records. Housing starts are beating expectations. The Toronto and Vancouver housing markets occupy prominent places on a new, global list of least affordable cities.* Now, Bank of Canada Governor Tiff Macklem says there are early signs Canada’s housing market is overheating. During a session with an Alberta business audience Macklem said there are signs of “excess exuberance” in the housing market. So far, he said, the move toward bigger houses further away from city centres has not been speculation. The BoC sees it as a response to a need for more working and family space for people who no longer need to go in to the office. The Bank supports its argument by pointing to the fact that [...]