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

Build Your Own Paper Block City

Urban Fold is an all-inclusive kit that allows anyone to build the city of their dreams with a few simple folds.
$24.95
building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Book cover of Insider's Guide to Careers in Urban Planning

So you want to be a planner...

Check out our behind the scenes look at 25 careers in the Urban Planning field
Starting at $14.95

NEW! Get the "Green Bible"

Understand the complexities of planning at the local level while preparing for the AICP* exam. Find out why this edition is included in the APA's recommended reading list.
$105