The real estate industry listens very closely to central bankers, and why wouldn’t they? Monetary policy heavily influences real estate prices. However, if you really listen to the words they use, you start to realize that they all sound the same… almost all of the time, regardless of what the economy is doing.
Half joking, I tweeted a quote and polled when and who said it: The Bank of Canada in 2018, or the US Federal Reserve right before the Great Recession. I thought it was a little murky, but my Twitter feed targets a small but highly technical financial crowd – I figured most would get it. Surprisingly, the poll was split 50-50. Half of people that answered couldn’t tell the difference between a quote on Canadian real estate in 2018 or the US in 2006.
We figured we would give our readers a similar quick quiz. Can you tell if the following quotes are from the Bank of Canada’s Governor Poloz on Canadian real estate (2017-2018), or the US Federal Reserve’s Bernanke (2005 – 2007), right before the worst recession in history. Trust us, this quiz is going to be as informative as any data point we could give you.
Photo: Bank of Canada.