Vancouver Real Estate Market To Keep An Open Eye
A warning has been declared by the Bank of Canada concerning the housing market which seems to be in financial vulnerabilities. The bank’s quarterly Monetary Policy Report stated that the soaring increase of prices in the housing market that has been going on for the past few years and this trend prepetuates as a result of self-reinforcing expectations which in turn makes prices more delicate and volatile.
Stephen Poloz who happens to be the Governor of the Bank of Canada said that “prices appear to be outpacing anything you could write down as fundamental.” A book titled ‘When the Bubble Bursts: Surviving the Canadian Real Estate Crash’ was also written Hilliard MacBeth, who is a Financial adviser. He said that it’s better for one to back off and be on the safe side right now if they are thinking of getting into the housing market, given the current situation.
He went on to say, “It’s the worst time to try and buy a house. You’ve got all these buyers desperate to get in before the prices rise even higher, and you’ve got these sellers who are reluctant to sell and maybe pulling their houses off the market for a while to see how high the prices will go.” Suggestions about the cutting of the rates by the central bank have encouraged what is termed as ‘housing excess’. Economists from Scotiabank are also weighing in their own opinions.