Warn about home price risk in Toronto, Vancouver
Other comments:
- overall level of risk largely unchanged from December
- share of highly indebted, Toronto, Vancouver homes rising
- other vulnerabilities: housing imbalances, bond, liquidity
- household vulnerabilities have moved higher
- Toronto, Vancouver fundamentals may not justify housing gains
- Other risks: rising rates commodity weakness. EME stress
- Sees higher potential for housing downturn
Needless to say, the BOC in the Financial System review is a bit concerned about the run up in housing prices in the hottest markets in the east and west. The USDCAD is little changed.
