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Economic Viewpoint

Recent Developments in the Canadian Housing Market Reignite Concerns

August 29, 2019
François Dupuis, Vice-President and Chief Economist • Mathieu D’Anjou, Deputy Chief Economist • Benoit P. Durocher, Senior Economist

After a major slowdown in several regions since early 2017, the Canadian housing market has been showing signs of a recovery in recent months. It must be said that the conditions are favourable, thereby stimulating demand in a number of markets. Even if the situation isn’t raising any red flags in the short term, it still bears keeping a close eye on it while the problem of the housing market overheating could worsen in the coming quarters. Under these circumstances, the risks associated with residential real estate throughout the country remain significant; this could, of course, influence what path the Bank of Canada (BoC) takes with its monetary policy.