Andrea Janus, CTV
Canada’s housing market could be headed for “a hard landing,” the International Monetary Fund says, warning that an “overheated housing market” and record-high household debt remain drags on the domestic economy.
In a commentary posted to the agency’s website, Hamid Faruqee and Andrea Pescatori hail how the Canadian economy weathered the 2008 financial crisis, but note that “certain financial risks” remain at play, namely: “its overheated housing markets and high household debt.”
While household debt has recently stabilized, it has “increased to historical highs over the past decade,” and now rests at 150 per cent of disposable income. That is “one of the highest” among OECD member countries, the commentary noted.
