“This might be one of the biggest bubbles of all time,” Rosenberg, founder of Rosenberg Research & Associates in Toronto, said in an interview on BNN Bloomberg Television. “Of course it’s been predicated on where mortgage rates are.”
The price gains don’t make sense when the labor market is so damaged from the COVID-19 pandemic, he said. “We have a situation where home prices are up 18% year-over-year with practically no wage growth,” Rosenberg said.
With an unemployment rate of 9.4% in January, the central bank is right not to worry about inflation, Rosenberg said. Statistics Canada reports February jobs data on Friday.
“We have an unemployment level in this country that’s higher than it was at the peak of the last two recessions,” he said. “So we still have a very deep, I would say, deflationary hole in the labor market. #SANDI HALPERN # LEASED # SOLD # REAL ESTATE MARKET # INTEREST RATES # UNEMPLOYMENT
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