Canada housing sales have risen another 1.8% in August. Calgary, Toronto and Vancouver are the cities facing the largest growth. The problem with this increase in price is that it is not matching the growth of wages, nor inflation. In Vancouver, the increase in housing costs has been problematic for years. Locals have been trying to keep up with the rising prices of their homes, leading them to fall into debt. These people are then being forced to move outside of neighborhoods that they have lived in for decades.
Contrary to popular belief, this article proves the housing market boom is not actually affecting all areas of Canada; there are many cities that are instead facing a drop in prices. This makes it challenging for policy makers to regulate both situations. Since prices are going up, mortgage companies should be making harsher regulations to impede citizens to buy homes well out of their price range. However, mortgage companies are hesitant, as it would negatively affect areas, where prices are already decreasing.
Even with the price decrease in some regions, mortgage companies should make harsher policies. Wall Street Journal explained, “The ratio of household credit market debt to personal disposable income rose to 163.60%.” Canadian’s household debt is much higher than they can afford. With harsher regulations in place, it would help Canadians make more intelligent decisions regarding the purchase of homes.