Addressing an audience in Toronto, Carney revealed that the housing sector was moving towards a “more sustainable path,” but added that although starts are down and debt continues to fall, those looking to invest their money should do so cautiously and wisely.
“We’ve seen starts coming down,” said Carney, “We’re seeing some overbuilding still in condos and we’ve been pretty clear about that. We have seen the pace of household debt accumulation slow as hoped for, as intended, from about 10 per cent to just more than four per cent. We’ll see if that persists, but that is a positive. We’ve seen some adjustments in the resale market, which again is positive.”
Consumers were warned against overzealous spending that could accelerate the levels of household debt, with homeowners and investors biting off more than they can chew – or afford. Carney offered “caution” to consumers, saying that historically where policy measures have slowed spending, a period of reacceleration typically follows.
“[We have] not necessarily seen anything that would be consistent with that, we just have to be vigilant about these aspects and adjust if necessary to that if there were clear signs of a reacceleration,” he said.