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BOC warns that housing market vulnerabilities are edging higher

BOC publishes its latest risk review

  • Identifies four key risks to the financial system
  • Risk of broad based drop in home prices remain elevated
  • Risk of disruption from China and EM's remains elevated
  • Risk of spillover from higher global premiums is moderate
  • Risk of prolonged weak commodity prices is moderate

In more detail on housing

  • Base case is a constructive evolution of housing imbalances
  • Sees no evidence of a significant rise in delinquencies
  • Overall risk level is about unchanged since June

The latest report doesn't include an overvaluation estimate like it did previously. Prior reports estimated overvalued homes of 10-30%

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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