October 27, 2010
If you follow Buzzbuzzhome’s Blog, you know that we’ve been posting quite frequently about the potential for a US-style crash in the Canadian housing market. Our stance? Nahhhh.
And now we have the Governor of the Bank of Canada backing up our prediction.
According to the Globe and Mail:
Bank of Canada Governor Mark Carney is still concerned that home prices could drop more sharply than expected and exacerbate the growing debt burden of many households – but he doesn’t see it as very likely.
We’re not saying that Canadian home prices are going to continue their crazy price appreciation. We’re saying that values won’t take a nosedive like they did in the US. But our policymakers averted the crisis with the introduction of prudent new mortgage rules and raising rates.
A lot of people pointed to the slowing housing market in recent months as a leading indicator of a housing price decline but really, it’s just the policies I mentioned above in action.
We don’t want to gloat but– told ‘ya so!