Canada’s housing market has good reason to be rising despite 4.5 percentage points of Bank of Canada interest rate hikes since March last year. But policy-makers are taking steps to contain risks stemming from the housing market and analysts expect prices to start dropping.
“I’m pretty sure the Bank of Canada is not happy seeing the housing market start to accelerate again, so they might lean on it a little bit,” BMO senior economist Robert Kavcic said in a June 27 interview.
The Teranet-National Bank House Price Index rose 1.6 percent from April to May. This is the third consecutive month of price increases for the index, which fell 7.6 percent from May 2022 to May 2023….