OECD Urges Strict Rules to be Endorsed in Canada’s Housing Market

Canada is being urged by the OECD to innovate ways to talk about risk linked with increased prices in the real estate markets in cities like Vancouver and Toronto. This has been a cause of concern by the international body to focus on the housing sector of the country. The economic think tank which is based in Paris said there should be more tightening of rules concerning macro-prudential which commenced in 2016, voicing the latest advice from the International Monetary Fund. There is a need for more rules and polices to be used and more areas to be restrictive where prices of homes have gone up.

The effort by the government in Ontario to slow the increase of home prices in Toronto was frowned upon, as it would daunt the supply of new rental units and will have a wider financial implication. The report noted; “Low rental supply would hamper labor mobility (particularly for the poor and the young) which will make adjustment to globalization more costly and prolonged.” A couple of measures were endorsed in the real estate market in Canada some years back.

According to a study by OECD, it showed that the economic stress Canada is experiencing might be because of the interference in terms of exports as the United States discusses over trade pacts and fight back against the Canadian softwood. An estimate of the country gross domestic product will increase this year by 2.8 per cent, which is more than last year’s 1.4 per cent.

The members of the OECD which consists of the U.S., Canada and other rich economies in the world said consumers and firms are becoming more confident and employment and trade are picking up their pace. Catherine Mann, the head economist said, nonetheless that policy-makers should not be worried.