The Bank Of Canada Issues Warning Over Hot Housing Markets

(October 22, 2014 )

As our real estate team at THE BC HOME HUNTER GROUP wrote in our recent Truth About Real Estate THE BC HOME HUNTER GROUP REAL ESTATE TEAM VANCOUVER FRASER VALLEY WHITE ROCK SOUTH SURREY WEST VANCOUVER NORTH VANCOUVER LANGLEY CLOVERDALE BURNABY PITT MEADOWS MAPLE RIDGE PORT MOODY VICTORIA ALDERGROVE WWW.BCHOMEHUNTER.COM WWW.604LIFE.COM  ewsletter, The Bank of Canada maintained its overnight rate at 1 per cent October 22nd. However, it issued a what could be seen as a warning over the possibility of a severe housing market correction, highlighting activity in cities in British Columbia, Ontario and Alberta. We are all too well aware of how hot our Fraser Valley real estate market has been as well as other jurisdictions throughout the GVRD. Townhouse sales have been extremely brisque as well as many other detached homes and land markets in the Fraser Valley in particular. Our team remembers interest rates in the 19 & 20 percent range, if you have any questions or concerns don't hesitate to call, text or email our team, 604-767-6736,

In its October 2014 Monetary Policy Report, the central bank said, “In general, with historically low price increases and sales volumes, markets in Eastern Canada appear to show signs consistent with a soft landing. This contrasts with major cities in Ontario, Alberta and British Columbia, where housing markets are generally robust and much tighter.”
THE BC HOME HUNTER GROUP REAL ESTATE TEAM FRASER VALLEY SURREY SOUTH SURREY LANGLEY WHITE ROCK CLOVERDALE WALNUT GROVE FORT LANGLEY PITT MEADOWS MAPLE RIDGE ALDERGROVE WEST VANCOUVER BURNABY NORTH VANCOUVER LYNN VALLEY MAPLE RIDGE PORT MOODY COQUITLAM SQUAMISH VICTORIA KELOWNA WWW.BCHOMEHUNTER.COM
It went on to say, “While a soft landing in the housing market remains the most likely scenario, near-record-high house prices and debt levels relative to income leave households vulnerable to adverse shocks. Continued strength in housing and consumption would provide a near-term boost to economic activity, but would also further exacerbate existing imbalances in the household sector and increase the likelihood and potential severity of a correction later on.”

The bank generally looked favourably on the housing market across Canada, however, noting that “Housing activity has been more robust than anticipated, buoyed by continued very low mortgage rates and exhibiting strength beyond a rebound from weather-depressed levels earlier in the year.”

It added, “Housing starts have remained broadly in line with demographic demand in recent months.

“However, sales of existing homes have picked up noticeable since the beginning of the year, to a four-year high … This is contributing to sizable increases in house prices, although the national picture continues to mask important regional divergences.”
THE BC HOME HUNTER GROUP REAL ESTATE SALES AND MARKETING TEAM METRO VANCOUVER FRASER VALLEY WEST COAST WWW.BCHOMEHUNTER.COM 604-767-6736
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