Pursuits
Toronto Housing Market May Need Vancouver-Style Cooling, RBC Says
- ‘Concerning mix of drivers’ pushing up prices, CEO McKay says
- Average Toronto home prices up more than 20% for five months
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Toronto may require measures to cool its red-hot housing market similar to moves taken in Vancouver if interest rates don’t increase, said Royal Bank of Canada Chief Executive Officer David McKay.
The head of Canada’s largest lender said Toronto housing is “running hot” and is fueled by a "concerning mix of drivers" that include lack of supply, continued low rates, rising foreign money and speculative activity. Similar circumstances in Vancouver prompted British Columbia’s government last year to impose a 15 percent tax on foreign buyers.