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Canadian Housing Market Showing Signs Of A Classic Bubble: Merrill Lynch

Housing

First Posted: 12/20/11 07:46 AM ET Updated: 12/20/11 08:27 AM ET

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The Calgary Herald:

A report by Bank of America Merrill Lynch says Canadian home prices are now showing many of the signs of a "classic bubble." "We estimate the housing market nationwide is about 10 per cent over valued," says the report released on Monday by economists Ryan Bohren and Sheryl King. "Even so, the only way these valuations can be explained is by the record low mortgage rates. Under more normalized interest rates, home prices would actually look 25 per cent overvalued based on current prices."

Read the whole story: The Calgary Herald

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HUFFPOST SUPER USER
Norma Ward
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01:28 PM on 12/20/2011
According to Demographia, Vancouver has the third least affordable real estate among seven nations when measured in terms of the multiple of median selling price to median household income as shown here:

http://viableopposition.blogspot.com/2011/02/demographia-international-housing.html
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