What the B of C says about housing prices …

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:

1. The central bank continues to caution that high household debt to income ratios are the biggest domestic threat to the Canadian economy.
2. 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.