“A sudden influx of investors in the housing market likely contributed to the rapid price increases we saw earlier this year.
Still, Beaudry noted “somewhat slower” house price growth over the summer should lower the chances of undesirable extrapolative price dynamics.
Housing prices soared through early 2021, surging to a peak in March before slipping over the summer months.
At the same time, the central bank has seen an increase of riskier high loan-to-income ratio mortgages, leaving people more vulnerable to rising rates.