Carney Says Authorities Must Be Vigilant on Canada House Prices

Bank of Canada Governor Mark Carney said housing prices in some parts of the country are reaching “severely unaffordable” levels, reinforcing the need for Canadian authorities to remain “vigilant” against a correction.

Carney reiterated the bank’s forecast that Canada’s housing market will cool as part of an economic “rebalancing,” in which business investment and exports will take over from consumers and governments as engines of growth. He said some parts of the housing market, such as Vancouver, may be rising to “extreme” valuations driven by fear and greed, rather than supply and demand.