Wednesday , 7 December 2016


Canada’s Housing Market Most Overvalued In the World – and Could Burst At Any Time!

The real estate sector in Canada is in a bubble that could burst at any time according to the IMF, Deutsch Bank,  the Bank of Canada and The Economist.

The Economist has determined that Canada’s housing market is

70% of mortgage lenders in Canada have expressed “concerns” that the housing sector is in a bubble that could burst at any time.

Deutsch Bank estimates the housing market is 67% overvalued and readily offers 7  reasons why Canada is in trouble.

Even hedge funds are starting to find ways to short the housing market in anticipation of an upcoming collapse.

Even by the Bank of Canada’s own estimate, the housing market is overvalued by as much as 30%. It is hard for housing to become more affordable when prices are rising in double digits in a year.

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2 comments

  1. An excellent summary of the issues around Canadian house prices. Please see my thoughts on the topic on our site and also in today’s Globe and Mail ROB comment page.