NEW YORK (Reuters) - Canada’s housing market is not in a bubble despite overvaluation estimated at between 10 to 30 percent, Bank of Canada Governor Stephen Poloz said on Thursday.
“We don’t think we suddenly became over-valued in a bubbly type way. We don’t think of this as a bubble in any way,” Poloz told a business audience in New York.
He repeated some of the analysis from the central bank’s Financial System Review, published on Wednesday, that said previous major housing corrections were accompanied by rising inflation pressures, rising interest rates and unemployment and slowing growth. “We have none of those present,” he said.
Reporting by Jonathan Spicer; Writing by Randall Palmer; Editing by Chizu Nomiyama