Canada’s central bank warns in its Financial Stability Review that house prices in the country are overvalued by between 10% and 30%.
The central bank governor, Stephen Poloz, noted however that house prices rises had been more gradual than in the runup to previous housing downturns, and that “the unwinding of household imbalances should be gradual as well.”
The central bank continues to expect a soft landing for the housing market, Mr. Poloz said.
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