Bank of Canada and Canada Governor Stephen Poloz

semi-annual Financial System Review: Last week, Bank of Canada Governor Stephen Poloz warned in his semi-annual Financial System Review about a potential drop in real estate prices in Toronto and Vancouver, according to NOW Magazine. He said Toronto rising prices are "unlikely to be sustained."In case you don't follow Bank of Canada governor-speak, that is a very cautious, circumspect way of warning those in a shaky financial situation to batten down the hatches. Instead, some may find themselves atop a house of cards. Poloz: "When people say, 'Well, I need to buy a house because I'm worried that prices are going to go up this much again next year and I'll be priced out of the market," in our opinion the fundamentals do not justify that kind of extrapolation."When he says "fundamentals," he means that job growth, incomes and immigration are not keeping pace with the inflated housing market. As early as 2010, Canadian Centre for Policy Alternatives senior economist David Macdonald warned that Toronto was experiencing housing price increases that were "outside of their historic comfort zone."Historically low interest rates have played a role in real estate prices. For a long time we've known that Toronto hot house and condo market was entering uncharted territory. (www.immigrantscanada.com). As reported in the news.