Pattie Lovett-Reid: Bank of Canada governor sees signs of 'excess exuberance' in real estate market

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Rising house prices have caught the attention of the Bank of Canada governor

HUNTSVILLE, ONT. -- Over the past year, one thing has become abundantly clear as we work from home. We now know with crystal clear clarity what our homespace should look like. If it didn't meet your new expectations, you likely have been on the move.

Throughout the pandemic, one of the pillars of the economy has been the real estate market. Rising demand, constrained supply and rock-bottom rates are all conspiring to lead us to believe home prices have only one way to go: higher. Canadians might have grown accustomed to fixed rates continuously declining after the five-year fixed rate in Canada reached a record low this past summer of 1.39 per cent.According to RateHub.ca, fixed rates are on the rise in response to higher-than-expected inflation in January. And if this inflation continues to go higher and optimism around the vaccine rollout continues, Canadians should expect to see rates continue to move higher.

 

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