Up, up, up: Canada house prices poised to surge again despite central bank warning

 Up, up, up: Canada house prices poised to surge again despite central bank warning

A realtor’s for sale sign stands outside a house that had been sold in Toronto, Ontario, Canada May 20, 2021. REUTERS/Chris Helgren

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OTTAWA, Nov 24 (Reuters) – Canadian housing prices are set to surge again in the coming months as investors and first-time buyers scramble to buy before interest rates go up, ignoring a warning from the Bank of Canada that there is a high risk of a sudden price drop.

Central bank Deputy Governor Paul Beaudry told would-be home buyers on Tuesday to consider if it is a “good time to buy or not,” pointing to market frothiness in certain cities and renewed investor activity.

Those conditions could “expose the market to a higher chance of a correction,” he said. read more

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The Bank of Canada last month signaled the overnight rate, currently at a record low 0.25%, could start rising in the…

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