Sept 20, 2022 – BoC Concludes House Prices Respond to Rate Hikes

by | Sep 20, 2022 | Industry Updates

The Bank of Canada updated its working paper “House Price Responses to Monetary Policy Surprises: Evidence from the U.S. Listings Data”. In it, the paper concludes that house prices react quicker than thought to monetary policy changes. In fact, listing prices drop 0.2% to 0.3% within two weeks of a monetary rate hike announcement. Because housing is a major indicator of household wealth, this finding has wide-reaching implications for ongoing monetary policy.

To review benchmark home prices across Canada, interact with the MLS Home Price Index below.


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