M2m condos. The housing market is adjusted to be the biggest risk in Canada. Canada should further strengthen real estate regulations to specifically help cool the booming real estate market in some major cities, according to a report released by the Organization for Economic Cooperation and Development (OECD) on Monday.Please Visit: M2m condos to Get Your VVIP Registration Today!
OECD said disorderly real estate market adjustments, particularly in Toronto and Vancouver, remained the main downside risks to the Canadian economic outlook.
The report notes that volatility related to housing and household debt is still increasing, but at a slower pace.
The report also points out that the Canadian authorities have taken measures to support the property market, but they should further consider introducing targeted measures for some regions.
Since 2008, the Canadian government has moved five times to limit the red-hot real estate market, most recently in December 2015.
But policymakers need to take steps to prevent specific property markets such as Toronto and Vancouver from becoming too hot without curbing economic activity in commodity-sensitive areas.
“We acknowledge that this is a complex market and that different situations are happening,” said Bill Morneau, Canada’s finance minister.
Mr Morno said the government was closely watching the impact of many factors in the property market, including demographics, supply issues and foreign investment.
The Bank of Canada warned last week that the rapid rise in house prices in Toronto and Vancouver was unlikely to continue.
OECD points out that for areas with high price-to-income ratios, targeted measures may exceed changes in capital requirements. Canadian financial regulators have planned to make capital requirements more responsive to market developments.
OECD quoted New Zealand as saying that market policymakers had lowered the ceiling on Auckland’s loan-to-valuation ratio.