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Expert warns Brexit vote may add fuel to Vancouver's housing market

Last Updated Jun 24, 2016 at 12:29 pm PDT

(iStock Photo)
Summary

Local expert thinks Canada will face pressure to keep its interest rates low

Says the outcome of the vote may add more fuel to the Vancouver's real estate market

VANCOUVER (NEWS 1130) – With global markets thrown into turmoil after Britain’s vote to leave the European Union, a local analyst says we are overlooking the fallout which is happening much closer to home.

The outcome of the vote, explains Canadian Business Magazine Managing Editor Mark Brown, may be adding fuel to Vancouver’s already white-hot housing market. “And the one unexpected thing that we might want to watch is what this means for the housing market and that might sound strange, what does Brexit have to do with the Canadian housing market?”

He adds Canada and the US will be facing pressure to keep interest rates at or near historic lows which could invite more money into housing.

“[And] partly because it seems like a bit of a safer asset than other assets right now. Honestly, that’s going to put more pressure on government’s plan to cool the housing market.”

Brown also thinks the low Canadian Dollar may also keep housing attractive to foreign investors.