House Prices and Bank of Canada

Bank of Canada: 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 CTV. "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 and - The Bank of Canada continues to sound the alarm about the country housing market, adding the risk of failures in the Chinese financial system and higher long-term interest rates from the U.S. as possible triggers for a destructive crash. 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.