Reuters - Video

EDITION: U.S. | U.K. | IN

Freeland Fast Forward

Putting the brakes on Canada’s housing boom

Thursday, April 18, 2013 - 03:14

The Bank of Canada is working to slow the growth of household debt and cool the country’s housing market but it may be years to stabilize, says outgoing Bank of Canada governor Mark Carney.

▲ Hide Transcript

View Transcript

We pulled Thomson Reuters financial clients ask them what they wanted me to ask you and one of the top question. That actually James Glassman of JPMorgan. Wanted me to ask is is they're housing bubble in Canada. Is that. The big concern of yours and if you -- bursting that. Your problem concern of the banking candidate and it has been concern and that the government -- -- and the regulator for the last couple years has been the pace of growth of household that. Which has been related to dynamics in the housing market not exclusively mark -- recently it. And to a number of measures have been taken to slowed that pace the pace of growth is gone from 13%. You know per -- to just over 3% now so it's come down quite nicely. Others in four sets of macro credential moves taken by the government tightened underwriting standards of the regulator has. We have. Conducted monetary policy in we think it pretty transparent way. That has has highlighted the risks to this and the potential consequences for the path of interest rates in other words that could be higher sooner if if this isn't addressed there just hasn't adjusted. In a timely way Amelie missed and I absolutely Canadian families from the point. As these measures were put in place -- -- -- 11 there's just the the realities of where that grosses as has gone down. But the second thing is that variable mortgages for example. We're running about two thirds of mortgages were terrible rates. Before. There was a concerted effort at the middle of last year but this time last year by the bank by the government files the now let's put down to 10% to 10% of the -- mortgages since that point. It's a cliff. Have been right -- all right so that's just another indicator is if you if it is in the area as a consequence of that. There has been an adjustment activity in the housing -- -- to go back here. Question here here you are underclassmen question remember that. What the the you know we we use C valuations in the housing market has been quite firm and and and very firm in some markets them. We we have seen an adjustment in those prices. And we are now seen household debt levels stabilize. We'll be that high levels that things are moving in the right direction. Including on the on the on the new builds on them housing starts. How much more they happened how much hair still need to let. It's I think this is -- it's a and adjustment that best take place over a couple of years. We have highlighted. That we feel very constructive revolution. Of dynamics and -- that and in the housing market thus far I'm so we feel. The collective. Suite of policies have been the right ones getting the adjustment that we need. And as a consequence to bring back your first question. For the Canadian economy took -- to move from a sort of one and half percentage point pace of growth in 22 and there's. We're gonna need to see a pick up on investment and exports to fill in the gap that's left from -- but that's that's entirely. That's our report.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Putting the brakes on Canada’s housing boom

Thursday, April 18, 2013 - 03:14

Top News »

Most Popular »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Why bruised Brazil is a buy Why bruised Brazil is a buy

Fri, Jul 19, 2013 - (2:48)

3 ways to fix your bond portfolio 3 ways to fix your bond portfolio

Thu, Jul 11, 2013 - (3:10)

The next gold? Diamonds lure investors The next gold? Diamonds lure investors

Wed, Jul 03, 2013 - (2:38)

How to play the Fed’s tapering timeline How to play the Fed’s tapering timeline

Thu, Jun 20, 2013 - (2:34)

How to play banker on the web How to play banker on the web

Tue, Jun 11, 2013 - (2:57)

3 surprises about the 2013 stock rally 3 surprises about the 2013 stock rally

Fri, May 24, 2013 - (2:11)

How to cash in on lawsuits - Investing 201 How to cash in on lawsuits - Investing 201

Tue, Apr 30, 2013 - (2:30)

Rising dollar will drive stocks higher Rising dollar will drive stocks higher

Wed, Apr 10, 2013 - (2:32)

A little-known path to big dividends - Investing 201 A little-known path to big dividends -...

Thu, Apr 04, 2013 - (3:16)

What exactly does Warren Buffett own? - Investing 201 What exactly does Warren Buffett own? -...

Thu, Feb 14, 2013 - (0:51)

Big short bets: Where are they now? - Investing 201 Big short bets: Where are they now? -...

Fri, Dec 21, 2012 - (2:33)

How iPhone 5 sales affect your wealth - Investing 201 How iPhone 5 sales affect your wealth -...

Wed, Sep 26, 2012 - (2:52)

How to avoid doomed ETFs - Investing 201 How to avoid doomed ETFs - Investing 201

Mon, Sep 24, 2012 - (1:56)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

How to break your prenup - Money Clip How to break your prenup - Money Clip

Thu, Mar 07, 2013 - (1:18)

Watch your wallet on Pinterest - Money Clip Watch your wallet on Pinterest - Money Clip

Thu, Feb 21, 2013 - (1:33)

Get set for the big bull run - Money Clip Get set for the big bull run - Money Clip

Thu, Jan 24, 2013 - (3:41)

Raising charitable kids - Money Clip Raising charitable kids - Money Clip

Tue, Dec 11, 2012 - (1:24)

Render unto Apple - Money Clip Render unto Apple - Money Clip

Fri, Dec 07, 2012 - (2:50)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Lessons of the Jihad Jane case - Reuters Investigates Lessons of the Jihad Jane case - Reuters...

Sun, Dec 09, 2012 - (3:43)

Exclusive: Jihad Jane in her own words Exclusive: Jihad Jane in her own words

Sat, Dec 08, 2012 - (4:11)

Attorney: How a Maryland teenager became radicalized - Reuters Investigates Attorney: How a Maryland teenager became...

Fri, Dec 07, 2012 - (4:21)

Counselor: Jihad Jane at 17 - Reuters Investigates Counselor: Jihad Jane at 17 - Reuters...

Thu, Dec 06, 2012 - (4:17)

Reuters Investigates: Easing the grip of China's state-owned giants Reuters Investigates: Easing the grip of...

Tue, Oct 16, 2012 - (3:16)

Critics warn shadowy groups could bring bloodshed if Chavez loses - Reuters Investigates Critics warn shadowy groups could bring...

Mon, Aug 13, 2012 - (2:54)

Starbucks brews up big tax breaks Starbucks brews up big tax breaks

Mon, Oct 15, 2012 - (3:46)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)

360° snapshot of life in Kabul 360° snapshot of life in Kabul

Fri, Apr 04, 2014 - (1:26)

A blind teenager, living with vision A blind teenager, living with vision

Thu, Mar 27, 2014 - (3:51)

TIMELAPSE: Backstage at the Oscars TIMELAPSE: Backstage at the Oscars

Wed, Mar 05, 2014 - (2:49)

TIMELAPSE: Lunch with Oscar nominees TIMELAPSE: Lunch with Oscar nominees

Wed, Feb 12, 2014 - (2:55)

Sochi Highlights: Let the games begin Sochi Highlights: Let the games begin

Fri, Feb 07, 2014 - (0:40)

TIMELAPSE: On the Golden Globes red carpet TIMELAPSE: On the Golden Globes red carpet

Tue, Jan 14, 2014 - (3:28)

Pictures of the Year 2013 Pictures of the Year 2013

Fri, Dec 20, 2013 - (3:03)

Marching to the beat of Sousa's drum Marching to the beat of Sousa's drum

Thu, Dec 05, 2013 - (6:11)

The Gettysburg Address The Gettysburg Address

Thu, Nov 28, 2013 - (2:31)

Making Gruyere: A family affair Making Gruyere: A family affair

Wed, Oct 16, 2013 - (5:06)

Abortion: After the decision Abortion: After the decision

Tue, Sep 17, 2013 - (5:46)

A Hollywood Timelapse A Hollywood Timelapse

Mon, Jul 22, 2013 - (2:24)

Idaho's militia training Idaho's militia training

Wed, Jul 17, 2013 - (5:04)

Tornado survivors of Moore, Oklahoma Tornado survivors of Moore, Oklahoma

Fri, Jun 07, 2013 - (5:25)

24 hours in Taksim Square 24 hours in Taksim Square

Thu, Jun 06, 2013 - (1:00)

A Zeppelin flashback A Zeppelin flashback

Wed, Jun 05, 2013 - (6:50)

Dateline Asia »

Breakingviews: Alibaba priced for believers Breakingviews: Alibaba priced for believers

Thu, Sep 18, 2014 - (3:09)

Sterling jumps, on Scottish vote Sterling jumps, on Scottish vote

Thu, Sep 18, 2014 - (2:56)

Rare rock on the block in Hong Kong Rare rock on the block in Hong Kong

Thu, Sep 18, 2014 - (1:43)

Alibaba IPO is 'overhyped': Mark Mobius Alibaba IPO is 'overhyped': Mark Mobius

Thu, Sep 18, 2014 - (4:13)

China tech players chip away at Alibaba China tech players chip away at Alibaba

Wed, Sep 17, 2014 - (4:02)

Breakingviews: India hits Japan/China radar Breakingviews: India hits Japan/China radar

Tue, Sep 16, 2014 - (2:20)

Asia corporate sentiment is slipping Asia corporate sentiment is slipping

Tue, Sep 16, 2014 - (1:36)

Alibaba's China roadshow Alibaba's China roadshow

Mon, Sep 15, 2014 - (2:16)

Asia Week Ahead: Xi Jinping gets down to business in India Asia Week Ahead: Xi Jinping gets down to...

Fri, Sep 12, 2014 - (1:56)

Vancouver 'unaffordable'? Not in China Vancouver 'unaffordable'? Not in China

Thu, Sep 11, 2014 - (3:16)

Breakingviews: Export shortfall damaging emerging economies Breakingviews: Export shortfall damaging...

Wed, Sep 10, 2014 - (2:33)

Hong Kong democracy - the facts Hong Kong democracy - the facts

Wed, Sep 10, 2014 - (1:26)

Breakingviews: Get to know the Alibaba valuation calculator Breakingviews: Get to know the Alibaba...

Tue, Sep 09, 2014 - (3:30)

Abe looks to Japan's consumers Abe looks to Japan's consumers

Tue, Sep 09, 2014 - (1:45)

Corruption crackdown gives rise to a new mooncake in China Corruption crackdown gives rise to a new...

Mon, Sep 08, 2014 - (2:09)

Asia Week Ahead: China trade to reveal recovery pace Asia Week Ahead: China trade to reveal...

Fri, Sep 05, 2014 - (1:22)

Breakingviews: Beijing signals no more 'hands-off Hong Kong' Breakingviews: Beijing signals no more...

Sun, Aug 31, 2014 - (3:08)

Flying kangaroo Qantas looks to loyalty program for cash Flying kangaroo Qantas looks to loyalty...

Sun, Aug 31, 2014 - (2:36)