Economics
Bank of Canada Governor Sees ‘Worrying’ Signs in Housing Market
- Macklem warns on price gains, risks of borrowers overextending
- Economists are calling for government to take more action
March 10: Canada Housing May Be One of Biggest Bubbles Ever, Rosenberg Says
This article is for subscribers only.
The Bank of Canada is seeing “worrying” signs that some Canadians are taking on too much debt to buy into the nation’s hot housing market.
In an interview with the Financial Post, Governor Tiff Macklem said there is evidence that loan levels relative to home values are growing -- an indication that some borrowers could be overextending. He also warned people have begun to make purchases based on the belief prices will continue rising.