Pursuits
Toronto Home-Price Gains Aren’t Sustainable, Poloz Warns
- Bank of Canada governor reminds buyers prices can also fall
- Rate of appreciation is ‘divorced’ from fundamentals
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The speculation increasingly driving Toronto home prices is unsustainable, the head of Canada’s central bank said, warning buyers they should be prepared to weather a potential correction.
At a press conference Wednesday in Ottawa, Bank of Canada Governor Stephen Poloz cited recent reports showing prices in the country’s biggest city are rising faster than 30 percent, a pace that’s “divorced” from typical metrics of demand such as income growth and demographics.