Thursday, May 29, 2025

Latest

Bank of Canada Raises Alarm Over FOMO Pushing Housing Prices Higher

The Bank of Canada remains optimistic with regards to the ongoing economic recovery, with plans to curtail several emergency programs introduced at the height of the Covid-19 crisis as early as next month. Simultaneously, however, the central bank is also sounding the alarm over Canada’s housing market, which has been running hot as “fear of missing out” (FOMO) have prompted even more potential homebuyers to flood the market amid record-low mortgage rates.

Speaking at a CFA Society conference on Tuesday, BoC deputy governor Toni Gravelle highlighted the central bank’s rising concerns over housing prices, particularly the “fear of missing out,” which has further propelled gains in the surging market. Responding to audience questions, Gravelle revealed that the Bank of Canada is in the midst of analyzing just how much excess exuberance is behind the recent surges in home prices.

One of the concerns we’re having is there’s starting to be ‘fear of missing out’, FOMO, and that might driving some of the expectations,” he explained. Back in February, BoC governor Tiff Macklem cautioned that the housing market may be entering bubble territory, especially since prices continue to sharply escalate amid ongoing demand. According to the Canadian Real Estate Association, home sales set a new all-time record in February, as prices soared by 25% from year-ago levels.

Source: CREA

Information for this briefing was found via the BoC and CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

Related News

Tiff Macklem Is Ready to Hike Rates Again If Inflation Fails to Decline

Bank of Canada Governor Tiff Macklem is caught between a rock and a hard place...

Thursday, February 16, 2023, 01:52:55 PM

BMO Says Natural Disasters are Bullish for Real Estate Investors

On December 16th, BMO Capital Markets provided their 2023 real estate services sector outlook. They...

Saturday, December 17, 2022, 02:37:00 PM

Canadian Homeowners May Be Facing Downsizing Pressure Amid Housing Affordability Crisis

A recent Wahi survey reveals a concerning trend in the Canadian housing market, with downsizing...

Monday, June 24, 2024, 01:50:00 PM

Federal Government’s CERCA Program Not As Successful As Anticipated, Quebec And Ontario Step In

As a means of helping Canadian small businesses overcome financial obstacles during the coronavirus pandemic,...

Wednesday, June 10, 2020, 05:45:00 PM

Canadian Housing Starts Jumped 3.2% in May

Canadian housing starts posted another slight increase in May, rising by an annual pace of...

Tuesday, June 15, 2021, 02:41:00 PM