The Bank of Canada (BoC) surprised the market with a rate hike last week, and BMO doesn’t think it was the last one. Canada’s economy is running so hot, the market now expects at least two more rate hikes. It’ll almost certainly lead to higher mortgage rates, which will throttle demand for housing at these prices. That’s not just a coincidence.
To cool down housing, we need to quit the insane way we build car centric cities. Each Canadian city needs to become more like Montreal: triplexes and other Xplexes everywhere. Added benefit: cheaper infrastructure costs, more resilient to climate change.