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The high levels of household debt in expensive housing markets is another source of concern. The Canada Mortgage and Housing Corporation reported that the debt-to-income ratio was 208 per cent for the residents of Toronto. For Vancouverites, it was even worse at 242 per cent.

… the debt-to-income ratio was 208% for the residents of Toronto. For Vancouverites, it was even worse at 242%

Most of the household debt is mortgage debt, which is sensitive to changes in interest rates. The Bank of Canada has raised interest rates multiple times in the past few years. The Bank’s decision Wednesday not to raise rates any further suggests it is mindful of the slowdown in the global economy that has been worsened by the trade tussle between the U.S. and China.

While the consensus is lacking about the future of interest rates in Canada, many believe that the fundamentals are missing to justify significant interest hikes in Canada in 2019. This will be good news for home ownership.

Housing markets have withstood a series of policy interventions by provincial and federal governments that include additional transactional taxes on foreign homebuyers, stringent mortgage regulations, stress tests, rising interest rates and more. The slowdown in housing markets, one must realize, is the expected and intended response to a series of regulatory changes and hence must not be viewed solely as a sign of market weakness.

At the same time, one should also consider a long-term view of the property markets. Housing is a durable good that provides shelter and other amenities while growing in value as an asset class. The average home price in the cities and surrounding areas of Vancouver and Toronto is up 100 per cent over 10 years.

The increase in average housing prices over the long run should, therefore, provide perspective to those who own or are considering buying a house.

• Murtaza Haider is an associate professor at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached athmbulletin.com.