The number of Canadians predicting higher home prices in their neighbourhood remained above 40% in the latest polling by Bloomberg and Nanos Research. Canadian consumer confidence in housing is high following a “recent acceleration in the real estate market in recent months that reflects a shift by policy makers at the Bank of Canada to dim expectations for rate increases as it plays down concerns over rising household debt to focus on stimulating the economy.” According to David Tulk, chief macro strategist at TD Securities, the crux of the “confidence” is the combined impact of “seeing your own asset increase but also realizing that no one is going to take away the punch bowl.” Former Bank of Canada governor Marc Carney has been questioned in the UK about a “Canadian housing bubble” he is accused to creating. Maybe Canadian investors need to pay attention to German securities regulators?
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