Hat tip to venerable Westside realtor and avid blogger Larry Yatkowski at www.yattermatters.com. I hadn’t read the Globe and Mail early enough to catch the story but caught it on Larry’s blog over morning coffee.
I would imagine it is pretty unprecedented in recent Bank of Canada history that the Bank’s governor Mark Carney appeals directly to the public to rein in their borrowing-particularly in relation to mortgage borrowing.
The Bank and Governor Carney are in a tight spot: inflation is low and the high dollar is damaging uptake of exports-hence the desire to maintain record low interest rates.
But those low rates have ignited significant price inflation in many key Metro housing markets, as a result of a surge of purchasing activity and mortgage borrowing since April of this year. The idea that we are out of recession (technically) seems to have hit home with most consumers.
The fact that the governor of the bank is appealing directly to the consumer for prudence in their financial affairs is itself prudent-indeed courageous in some ways-but suggests the Bank is seriously worried about a reversal of fortune in the housing market.
Posted by: bruce
Categories:
Vancouver Fairview and Westside Real Estate Market
