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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 450,834,323
Close 2021-11-26 C$ 146.56
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Globe says TD, rivals see BOC warn investors on housing

2021-11-26 08:04 ET - In the News

See In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Friday edition that on Tuesday the Bank of Canada warned about the hot housing market, in particular investors and their role in pushing prices higher. A Globe editorial says the BOC's research has revealed that purchases by investors are rising far faster, on a percentage basis, than people buying homes to live in them. This surge has doubled since the start of the pandemic. The BOC earlier this year reported that investors account for one out of five residential real estate deals. BOC deputy governor Paul Beaudry says this "sudden influx of investors" is likely a contributor to the rapid increase in home prices this year. Mr. Beaudry suggested such investors may expect prices to keep rising, and said this can "expose the market to a higher chance of a correction." Should that happen, "the damage can spread far beyond investors." Mr. Beaudry tried to emphasize the country is not on the verge of big trouble. He said "none of that is to say a calamity is on the horizon" -- but this marks the first time the BOC has specifically warned Canadians about the role of investors in housing. It is not, however, the first time the it has warned on the risks of a haywire housing market.

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