Jun
15
Canada’s Hot Housing Market Untamable by Central Bank: BMO
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Demographics, jobs, foreign flows beyond reach of policies
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No major drivers indicate Toronto, Vancouver will see declines
Scorching prices in Canada’s top housing markets are unlikely to see declines because the major drivers are beyond the reach of traditional monetary policy, according to Bank of Montreal’s top economists.
“Monetary policy can’t do anything about the inferno,” according to the draft of a report led by Douglas Porter, the bank’s chief economist . “None of the major drivers of Vancouver and Toronto’s housing market are pointing downward.”
Benchmark Canadian home price rose 12.5 percent in May — the most in nine years, according to the report. Here’s why:
Canada’s Hot Housing Market Untamable by Central Bank: BMO
