Mr. Flaherty's strategy to deflate the Canadian housing bubble was implemented through policy that tightened home lending standards in July 2012. Economists have noted that a trend follows this type of change: first, there is an immediate rush by home buyers to avoid tighter regulations, followed by a decrease in sales once the housing regulations come into effect, but is followed by an increase in sales shortly after as buyers take advantage of all time low interest rates. What does this mean? According to these predictions, the Canadian housing market is due to see an increase in sales!
CREA announced earlier this week that national sales were up by 2.4%.
For more information on this subject please read the Globe and Mail's article http://www.theglobeandmail.com/report-on-business/economy/economy-lab/at-bank-of-canada-all-eyes-on-housing-market/article11245027/