It’s the turn of the Royal Bank of Canada to weigh in on the issues facing the Vancouver and Toronto housing markets.
President and CEO Dave McKay says the two respective markets find themselves at a “point of strain,” and they’re looking for a “multi-faceted solution, which addresses supply constraints and speculative forces.”
Furthermore, he says they welcome a coordinated policy from municipal and provincial governments, as well as the federal government, to tackle the issue.
Canada’s largest lender is, in some aspects, singing a similar tune as they address the issues with speculators and supply constraints in the metropolitan markets, which both contribute to higher prices.
RBC is going one further and suggesting it is comfortable with its mortgage book, but all higher prices are doing (and will do) is take a chunk out of the broader economy.
Areas like consumer spending, among others, are hindered by capital locked up unproductively in higher home prices.