Led by Scotiabank CEO Brian Porter, Canada’s big banks are urging the Federal government to take action to cool the super-heated housing markets in Metro Vancouver and Greater Toronto.
They’re afraid the bubble will burst and take a lot of economic casualties with it.
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CKNW business analyst Michael Levy says this call is significant.
“It absolutely is, because now you’ve got the private sector weighing in. This isn’t government, this isn’t municipalities, this isn’t the provincial government, this isn’t the feds, this isn’t the CMHC, this is actually the head of one of the leading banks in Canada and that chorus is being wrung in by other banks also.”
He says while the Trudeau government likely won’t take action right away, today’s call by Porter will spark behind-the-scenes discussions right away.
Metro Vancouver and Fraser Valley numbers still sizzling in May
The Real Estate Board of Greater Vancouver’s numbers for May show Metro Vancouver is “outperforming most regions in the country.”
Sales in May were 35.3 per cent above the 10-year sales average for residential properties for that month.
That saw 6,200 properties listed for detached, attached and apartment properties compared to over 5,500 in May last year — that’s put the MLS Home Price Index in Metro Vancouver at almost $900,000.
The communities included in the board’s survey include New Westminster, Coquitlam, Burnaby, Maple Ridge, and Whistler.
The real estate numbers in the Fraser Valley also indicating sales aren’t slowing down in the region, either.
Almost 3,000 home sales were recorded in May, a 47 per cent uptick from last year and shattering the previous sales record of 2,245.
The majority of the sales in the Fraser Valley were townhouses and apartments, with demand for those dwellings the highest on record.