The Canadian bank interest rate announced on May 25th sounded the alarm in the Canadian residential real estate sector about their recent weakness.
Shane Woodford, business reporter for News Talk 980 CKNW, commented on the recent interest rate announcement.
“Basically, the markets of Toronto and Vancouver are more vulnerable to downsize prices because in terms of the housing market across Canada, these are the two cities are really out in front, and they are out in front of their own,” the CKNW business reported said.
While the Bank of Canada did not specify the scope of any possible pricing regulations in the near future, the crawling figures in the two cities are blurring the actual picture which statistics show including the declining figures in locales outside these leading markets.
“It really is a regional story and certainly from the bank’s perspective as well- that is why experts are not making interest rate policy predictions irrespective of what is going on in the housing market because it varies so much across the country”.