The housing debate on whether there will be a hard or soft landing rages on across the country with outside observers also chiming in. Some regions seem to be full on correcting while other areas are still setting records. Suffice it to say there is plenty of evidence to back almost any opinion.
The following excerpt is from BMO Focus May 24th:
A cooling housing market: The only debate when it comes to Canadian housing appears to be whether the landing will be hard, or just bumpy. The legion of uberbears have been spectacularly wrong, at least so far, with prices still edging higher in the past year and new home building resetting nicely to just below demographic demand.
But, few dispute the fact that housing will be a drag on growth for the medium term, not the highly favourable tailwind of the past three years. With construction jobs representing a record high share of total employment at more than 7% this cooling will weigh more heavily than usual.
A cooling housing market is just one of many challenges facing the new Bank of Canada Governor Stephen Poloz who takes over on June 3rd.
Other challenges include:
- slow economic growth
- low inflation
- an overvalued currency
- record household debt
You can read the entire report here.