Investors have become more prevalent in Canada’s housing market, accounting for 30 per cent of all residential real estate purchases in the first part of this year, according to new data.pandemic, investor buying has grown as soaring home prices ramped up interest in residential properties as an asset class.
“The presence of investors in real estate markets can amplify house price cycles,” the Bank of Canada said in a note accompanying the data. The central bank’s data are designed to shed light on two vulnerabilities facing the Canadian economy: the elevated level of household indebtedness and high house prices. It reveals that some vulnerabilities are increasing, including tiny increases in delinquencies for car loans and instalment loans, which have set repayment schedules. Mortgage delinquencies, in which a borrower misses a payment by at least 90 days, stayed steady at 0.12 per cent.