Government intervention in Toronto’s housing market increasingly likely, bank says
Mortgage Broker News
The government may step in to cool off Toronto’s red-hot housing market, the Royal Bank of Canada (RBC) said. Home resales set a new record high in 2016. In its Canadian Housing Health Check for 2017, RBC said the likelihood to address housing risks in Toronto “is increasing.”
“Toronto is showing increasing signs of overheating,” the bank said. It pointed out that affordability-related vulnerabilities continue to be major concerns in Vancouver and Toronto. Such vulnerabilities are now being tempered (somewhat) in Vancouver, however, by rapidly moderating price increases, it added. RBC did not specify what sort of moves policymakers would introduce to cool down the Toronto’s market.