. Home sales in Toronto dropped 27 per cent in April, and an index that measures home prices in the city showed the first monthly decline since October, 2020.
“Specifically, we could also get stronger demographic demand from immigration. Or some of the increase in housing demand we saw during the pandemic – for bigger housing and in suburban locations – could persist much more than we have factored into our projection,” he said. “When I’m looking at house price growth, price-to-income ratios, it just doesn’t add up. At some point there will be a cooling effect from an increase in interest rates,” he said in an interview.
Despite some similarities, Mr. Gravelle isn’t expecting a rerun of the kind of “stagflation” seen in the 1970s. Stagflation involves high inflation, high unemployment and low economic growth. Mr. Gravelle noted several structural features that make today different from the 1970s. Employment contracts are less likely to be indexed to inflation today, reducing the chance a wage-price spiral will develop. The central bank also has built up credibility controlling inflation over the past 30 years, which should help keep inflation expectations anchored, he said.
We need a serious corrections in our interest rates 6%. They should have never been lowered by the government & CMHC creating a subprime, inflated housing market by 45% in Canada after the US housing market Banks schemes.
Wonder how much their quantitative easing + easy money policies of the past few years have helped to inflate Canadian housing prices to bubble territory? They certainly helped increase inflation over BOC’s 2% target since April LAST YEAR! housingbubble HousingCrisis
They have an inflation target window. BoC should take it into account insofar as The BoCs inflation calculation factors housing costs. If housing price inflation slows, stay flat, or comes down that should impact current measured inflation.
Que the hundreds of BoC apologists. Must have missed the part in their mandate where it included protecting housing assets. Maybe we are 'experiencing inflation differently'.
When housing prices were skyrocketting, they were not considering it. Even saying it wasn't their mandate to control housing prices. But now that it's the other way around, they want to consider it...
Why on earth was the Bank of Canada so slow to move to tighten credit, they were clearly asleep at the switch.
Monetary tightening should have started at least two years ago, covid threw the timing off, so now it will be more painful than necessary. Interest rates do not affect just RE but the whole raft of investment decision making.
I don't think they have much wiggle room left, either they raise rates or the bond market will do it for them. Rates are going up one way or another until things crash. This comment is likely intended assert that they are still in 'control' in order to maintain confidence.
What an absolute joke.
They’ve created a monster and they have no idea how to manage it. If mortgage values become greater than home values for many people, foreclosures will rise and CMHC will have to start paying out. Confidence in banks will fail and cash infusions from lines of credit will dry up.
Looks like Deputy doesn’t have enough exposure to economic impact of these scenarios. Simply copying US policies I believe
But the BoC is not political, cool. Soaring real estate prices are fine, but if they start to correct home prices become part of the BoC's mandate. I can't imagine why people think Tiff has zero credibility when all he focuses on climate and RE developers.
'The central bank also has built up credibility controlling inflation over the past 30 years, which should help keep inflation expectations anchored, he said.' .....
HonAhmedHussen you're all in collusion with one another. I hope this fucking country burns.
The bankofcanada is putting the interests of a small cadre of RE speculators and money-launderers ahead of the interests of working class citizens. Burn it the fuck down, Pierre.
Now i know why Polievre wants to fire the governors of BOC...
It's official we are a banna republic
bankofcanada can not make ctrling of inflation its sole or even primary mandate . It has to ensure that RE speculators including our landlord parliamentarians do not suffer losses in Canadian housing market . As Srilankans say would be such a breach of cozy club rules .
What a fake news. Tiff in his last update clearly stated that INFLATION and only inflation is there target. This has nothing to do with housing or anything else. This news house always support speculators in Canada…what a shame!
'Zero'. GDP is going below zero this year. Brace!
Time to bring out the pitchforks bankofcanada. You have failed and lost credibility.
bankofcanada ,you only mandate is to keep inflation between 1% and 3%. Nowhere does it say anything about real estate. MacklemJobReview CrookedCapitalism
bankofcanada follow your mandate!
'although how high rates go will depend on how the housing market responds to rising borrowing costs.' How high rates go depends only on the value of inflation. Stop protecting the financially irresponsible and do your goddamn job!
... This country is a corrupt shithole. And yes, Twitter, I put a lot of thought into that before saying it, more than a decade's worth.
Housing to the moon.
It’s all bllsht talk, BOC has no power over trend in int rates. Interest rates in Canada have depended and will continue to depend on one thing and one thing only, what US FED does. Interest rates are decided in Washington.
Deputy Governor Carolyn Rogers own multiple rentals, their personal interests will continue to hurt ordinary Canadians
We need to stop worrying and protecting the housing market. If it crashes, let it crash. This is why we are a damn Banana Republic
Tiff Macklem and his deputy should be fired.
If there are more rate hikes Canada could default on its debt payments. Never mind thinking about monetary policy JustinTrudeau needs to spend some time learning about monetary policy. TrudeauMustGo TrudeauworstPMever
What a surprise. I will move every dollar I own to $US equities and crypto. I've already started. You fucking fools.
bankofcanada funny, supply hasn't been the true issue to affordability has it? You literally know, and have no problem disclosing, that you control it.
Wut?
What? What is that supposed to mean? This means if the FMCGs keep getting expensive but house prices are 'low enough', you'll stop raising the rates?
If the Bank of Canada stops hiking because of housing and the Fed keeps hiking we can kiss the loonie goodbye.
Not fuel prices and cost of living? Increase oil production, build pipelines and remove the Carbon tax. This will help to increase the Canadian dollars buying power and lower inflation. We need to look after Canadians before we worry about our track record on the global stage
I just can't share this enough.
This is the new sector for bailout getting into the too big to fail like banks airlines etc.
Sorry bears. Your decade of being wrong will continue into the next decade.
Shouldn’t it be *Inflation*?
So does that mean if it goes down they’ll cut rates lol?
As usual the bankofcanada is impartial 🤦🏼♂️ no wonder many think they head should be fired
So bankofcanada, why did you allow the real estate market go to the moon then? Care to explain? vanre tore vanpoli bcpoli cdnpoli HousingCrisis
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