Quote:
Originally Posted by _Q_
So just because other Canadian cities are worse than Calgary, it means we're heading in that direction as well?
I don't see it.
Canadian home prices are way higher than rhe OECD average. At some point, it starts to hurt economic activity with all our money tied up in real estate.
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But the data already shows that the housing markets of Vancouver, Toronto, and Calgary aren't actually linked. So major "bubble poppings" in those jurisdictions probably won't have an overall large effect on this market. Central bank just opted to keep a low interest rate though, so I think (as i have previously predicted here) we are taking the inflationary route to try and drive down some of this debt. Punishes all the savers out there, but our government was not a saver. Without an increase to interest rates, I am not sure what mechanism will cool down any housing market in Canada.