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RBC Urges Measures to Cool Canada’s ‘Overheating’ Housing Market
- Bank joins chorus warning that prices are getting out of hand
- Government should revisit capital gains exemption: economist
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The Canadian housing market is “overheating” and policy makers need to take steps to cool it down, according to an economist at Royal Bank of Canada, the country’s largest bank and biggest mortgage lender.
“Demand is exceedingly strong, inventories are generally low, and property values have soared to levels far outside historical norms,” Robert Hogue, an economist at RBC, wrote in a research note published Wednesday. “Making matters worse: buyers and sellers expect prices to continue to escalate.”