OECD Says Ottawa Needs to Cool Down Toronto And Vancouver Real Estate Markets

According to the Organization for Economic Co-operation and Development, Ottawa needs to create measures targeted towards reducing some of the risks associated with increasing prices of homes and household debt levels in Toronto and Vancouver.

The OECD stated in a report issued yesterday that the possibility of a housing market correction in two of the country's hottest housing markets could be a threat to Canada's financial stability.

According to the report, very low borrowing rates have pushed household credit growth and underpinned rapidly rising housing prices in Vancouver and Toronto.

These two cities make up a third of the Canadian housing market. As per household incomes, both housing prices and household debt are high.

Although Finance Minister, Bill Morneau increased the minimum down payment required for homes over $500,000 in February as a measure aimed specifically at cooling Toronto and Vancouver markets, the OECD says more measures need to be introduced.

The OECD says more measures should be introduced to reduce some of the the risk coming from high prices of homes and high household debt levels. The measures should be targeted towards Toronto and Vancouver.

Reference: Global News

http://globalnews.ca/…/housing-correction-could-threaten-c…/