Investors are growing increasingly wary of overinflated home prices in parts of Canada.
Economists at RBC say that it is receiving many questions from investors about the potential impact for markets such as Vancouver and Toronto in particular, with low interest rates helping to fuel home buying.
The report from George Davis, economist at RBC Dominion Securities, warns: “The housing market serves as the most prominent risk to financial market stability in Canada.”
Davis says that foreign buyers are not the cause of overinflated prices, citing interest rates and higher incomes as greater influences.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: