Investors Becoming More Frightened

Investors are growing very cautious and extremely carefully as the home prices in certain parts of Canada become overinflated. It has become a problem and worrying to investors at the same time.

The Economist at RBC said that there has been a lot of questions coming in from different investors about the damages and effect the inflation can have on the real estate markets, especially in areas like Toronto and Vancouver specifically. To make matters worse, the interest rates which is lows helps increases the sales of homes.

An economist at RBC Dominion Securities, George David, gave a report while cautioning that “the housing market serves as the most prominent risk to financial market stability in Canada.”

Davis also said that the cause of the overinflated prices is not the foreign buyer’s fault, so the blame cannot be put on them. He also mentioned the reason behind the overinflated prices; the higher incomes and interest rates.