Bank of Canada talks about corrections in some housing markets

2015-04-16 · Les Twarog & Sonja Pedersen

Jamie Henry
Other

In the Bank of Canada’s economic outlook on Wednesday it reiterated its concern about the housing market, saying that it still expected a soft landing for most regions.

However, as the bank confirmed that interest rates were holding steady at 0.75 per cent, it sounded a warning about corrections in some markets.

Alberta’s oil industry downturn is a factor for concern, but so is the growth of prices in Toronto and Vancouver.

The BoC noted that if there was to be a correction in prices in those markets it shouldn’t spill over into other regions, but that it would be “a major event” if it did.