New Report Claims Canadian Housing Market 'Inching Towards Instability'

According to a recent report from Emanuella Enenajor, an economist at Bank of America Merrill Lynch, the Canadian housing market is "inching towards instability."

The report

"Canada’s housing market is overheating," explained Enenajor. "House prices have reaccelerated along with mortgage credit outstanding. This is the result of a low-rate policy both domestically and abroad and a lack of adequate supply to satiate demand."

She further postulated that "the Bank of Canada is unlikely to raise rates over the next few years as this could exacerbate housing market weakness."

"We expect a regulatory response via tighter mortgage lending rules, but only once the economy has stabilized from the oil shock. In the meantime, house prices will likely continue to accelerate."

All of which would definitely explain why millennials are waiting longer to buy real estate.

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