Did the Bank of Canada fuel house price appreciation?
The Bank of Canada may have fuelled the run-up in Canadian house prices with loose monetary policy over the course of the last decade, the Organization for Economic Development and Co-operation says. In its annual review of the Canadian economy, released today, the group notes the increase in house prices, along with the price-to-income ratio, since the late 1990s, with a time out starting in June 2008 when costs fell, but only briefly. Some markets, the OECD says, are still overpriced despite the recent softening in the market, though real estate is expected to soon cool further.
