Are Canadian bank investors worried about the housing market?

The downturn in Toronto’s housing market appears to be drawing to a close, and if the performance of Canadian bank stocks is any indication, investors seem to agree.

Despite persistent fears that the domestic housing market was in a dangerous bubble bound to burst in a disruptive fashion, data from the Toronto Real Estate Board suggests otherwise. While resales in August remained on the downtrend relative to a year ago (falling 34.8 per cent), the annual decline was the smallest in three months.

“Those worried about a collapse in Toronto’s housing market can breathe a little easier now,” said Robert Hogue, senior economist at Royal Bank of Canada.

Watch Video