Bank of Canada and House Prices

House prices: The central bank latest semi-annual review of the financial system concedes that the probability of a sharp housing correction, particularly in prices, is small but the consequences would be large. , according to Hamilton Spectator. "House prices have continued to rise since the December report ," the bank governing council points out. "Although the more moderate pace of price increases suggests a soft landing, they are still growing faster than disposable income," the report adds, citing Toronto, Quebec, Winnipeg and Hamilton as cities where prices have increased. The Bank of Canada continues to sound the alarm about the country housing market and high levels of household debt as the biggest domestic threats to the economy and the financial system. In particular, the bank worries that although the market appears to be headed for a soft landing, certain hot spots like Toronto condominium market continue to race forward, and prices continue to rise. (www.immigrantscanada.com). As reported in the news.