Governor Stephen Poloz and Real Estate Prices

economic fundamentals: Governor Stephen Poloz cautioned that those climbing real estate prices have outpaced local economic fundamentals like job creation, immigration and income growth, according to Brandon Sun. The central bank decision to weigh in this week on what has been a long-running concern came after it saw growing evidence those markets were fuelled by "self-reinforcing" expectations among prospective buyers and lenders, Poloz said. THE CANADIAN PRESS/Adrian WyldOTTAWA - The Bank of Canada delivered a warning Thursday that surging housing prices in the hot markets of Vancouver and Toronto are rising at an unsustainable clip. The bank concern is that people believe the price trajectory will continue to point skyward."You have to admit the possibility that the price could actually decline in these circumstances," Poloz told a news conference in Ottawa after the release of the bank semi-annual assessment on the state of Canada financial stability."But we're not predicting that or anything."We're just saying the risk that that could happen — whatever number it is — is growing as we sit here."The Bank of Canada document noted year-over-year house price growth in the greater Vancouver area hit 30 per cent last month, up from 15 per cent in December. Vulnerabilities linked to greater imbalances in regional housing markets and the continued rise of household debt were higher than they were six months ago, the bank said in its latest financial system review. In Toronto, the report said prices increased 15 per cent, compared to 10 per cent six months ago. (www.immigrantscanada.com). As reported in the news.