Bank of Canada: Housing “more robust than anticipated”

Bank of Canada: Housing “more robust than anticipated”

Bank of Canada: Housing “more robust than anticipated” In its monetary policy report released yesterday the Bank of Canada admitted that some of our markets are far from a soft landing. The report noted that the market has rebounded following the very cold winter and benefitted from low interest and mortgage rates and that housing activity has been “more robust than anticipated”. However it is not a universal picture as we know. The BoC highlighted the differences between east and west, saying that the eastern provinces are more consistent with a soft landing, while cities in the west continue their growth. The bank believes the imbalance will carry on and the gap may get bigger. Experts suggest that as the market is not facing the same challenges everywhere in Canada, the BoC would be unlikely to introduce any ‘catch-all’ measures. Read the full story.
10 Comments
  • Kent Farnsworth 2014-10-23 10:21:15 AM
    That is exactly why the regulations for mortgage lending needs to be sectioned off in regions. Would it be too much to ask for OSFI to do just a few hours researching so the most of the country isn't penalized for what is happening in 3 or 4 cities?
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  • Kent Farnsworth 2014-10-23 11:30:02 AM
    In some months in 2013 there were more foreclosures in New Brunswick than any other province in the country. Considering the population of this province, those are some pretty scary statistics. I would chalk up a significant percentage of those repo's to the change of LTV with regard to refinances. In a boom/bust type of economy it's was commonplace for people to use the equity in their homes to help get by the rough economic periods. This time when that bust happened there was no refuge from it. Property values decreased due to the mix of economic downturn and the inability to refinance to get over the hump. It was a big mess down here for awhile.
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  • DeJong 2014-10-23 12:07:39 PM
    Kent, where did you get the foreclosure stats from?
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