Talks have been going about on the current Canadian housing market situation without any solutions being found. However, many people are with the notion that it is of no use for the Finance Minister Bill Morneau to go about setting up a research team to find out a way forward when he already knows what needs to be done.
It is believed that the study to be conducted is mainly focused on finding ways to limit the impacts of foreign investors in the Canadian housing market. On the other hand, the most pressing issue for the Minister is the reason why these investors are taking part in the Canadian housing market. Presently, this fact still remains a blur even though it is quite important for this information to be known.
However, one of the fastest ways to put the situation under control is by allowing an increase in the interest rates. Instated of letting bank rates remain low, it will be better if they are increased just a bit to help bring down the house prices.
This suggestion is said to be the best option for the housing market because it will make houses more affordable but this will, in turn, reduce the concentration of investors in certain areas since not all markets will be affordable by all. In addition, fewer mortgages will be made available by banks and a reduction in the supply of new houses. Furthermore, business dealers in household items will also face massive losses as fewer people will be demanding household items since there are fewer affordable houses.
Even though the suggestion is a bright one, the chances for it to work are very slim as it will not only affect the housing market but also the overall economy. This rules out all the possible options available hence a new method has to be implemented.
This is a very sad situation as Canada has become the haven for most foreign investors while the local investors stand the great chances of loss. Toronto housing market provides one of the best housing services that invite more investors.