Housing indicators much stronger than economists expected…example being average price of 13.6% for September over year prior…Bank of Canada governor ‘concerned’ but doesn’t want to ‘overstate risk’…
(Source: The Globe and Mail)
Bank of Canada Governor Mark Carney says he has “some concern” that the surge in the housing market is unsustainable, although for now the boom in home buying remains a significant factor in Canada’s economic rebound.
“We do have some concerns about it,” Mr. Carney said at a press conference Thursday. “Obviously, consumer borrowing cannot not grow faster than the economy forever.”
Read the full article by Kevin Carmichael, “Bank of Canada monitors real estate surge” in the Globe and Mail, (Oct 22, 2009).