The Bank of Canada (BoC) and the Economist say that Canadian housing is over valued 10% – 20%
Just days after the BoC’s highly qualified pronouncements Moody’s Analytics – an organization that some people find less than credible than the BoC – said maybe current prices can be justified by ‘structural changes’ in the market.
Here’s the constant:
- The central bank continues to caution that high household debt to income ratios are the biggest domestic threat to the Canadian economy.
- The Bank also says that the danger of that risk becoming reality, due to a jump in interest rates or a sharp downturn in the economy, is low!
That is good news says Mark Herman, Calgary Alberta mortgage broker.