No 'Bubbly' Behavior in the Canadian Housing Market

A new Canadian economics report shows there is little reason to fear a housing bubble there.

"Canadian home prices rose by more than 8 per cent from a year ago in the second quarter, buoyed by a dip in mortgage rates that helped to improve affordability. (The average five-year chartered bank posted mortgage rate dropped by about 15 basis points to 6 per cent in the second quarter). At first glance, the current pace of home price appreciation might sound excessive to some and might raise concerns about a growing speculative bubble akin to the late 1980’s experience or the “frothy” condition south of the border...Since the most basic definition of a housing bubble is that prices are being bid up beyond what their underlying fundamentals would justify, then most regional housing markets in Canada would not qualify for 'bubble' status."

Thanks to Michael Dudley

Full Story: Cooling Housing Market Shows No Signs of Bubbly Behaviour

Comments

Book cover of the Guide to Graduate Planning Programs 4th Edition

Thinking about Grad School?

New! 4th Edition of the Planetizen Guide to Graduate Urban Planning Programs just released.
Starting at $24.95

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $209

Wear your city with style!

100% silk scarves feature detailed city maps. Choose from six cities with red or blue trim.
$55.00
DVD Cover of The Story of Sprawl

The Story of Sprawl

See how America changed shape in this collection of historic films that visually document how sprawl evolved.
$29.99 for 2-DVD SET