According to a recent statement from the Bank of Canada’s Senior Deputy Governor Carolyn Rogers, a correction in house prices is essential for restoring affordability in major Canadian cities like Toronto. Rogers highlighted that the central bank is reassessing its housing market forecasts due to recent weakness, acknowledging a potential rebound in March but emphasizing the need for prices to “settle down a bit.”
Rogers’ comments come amid concerns about the pace of price increases in recent years and the challenges of achieving affordability, even with recent rate cuts. CMHC estimates that restoring pre-pandemic affordability would require 430,000-480,000 new units annually for a decade, a build-out that has yet to materialize. For more insights into the Bank of Canada’s perspective on housing affordability, read the full article on mpamag.com.
Source: Read the original article
