What action should policy makers take to mitigate Canada's runaway home prices - and what are they most likely to do?
BNN Bloomberg's Greg Bonnell speaks with John Pasalis, Move Smartly lead contributor and Realosophy Realty President, about growing concerns about Canada's bubbling housing market.
Some of John's key points include:
- Supply is not a solution for today
Increasing supply of housing including purpose-built rental options is a great plan, but this is a 10-year plan, not something that will affect housing market realities today.
- Officials' messaging to the market has the biggest impact
What the Bank of Canada (BoC) and other key actors says has the biggest impact on how consumers and investors in the real estate market act.
- Government initiatives more likely to target investors first
It may be politically easier for the government to target investors rather than first time or average home buyers. Initiatives could include taxing capital gains or increasing the downpayment required for investment properties.
Click on video above to watch the full conversation.
John Pasalis is President of Realosophy Realty, an innovative residential real estate brokerage in Toronto. A leader in real estate analytics, Realosophy educates consumers at Realosophy.com and MoveSmartly.com and helps clients make better decisions when buying and selling a home.
A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).