TORONTO - Home sales may be slowing, but prices in six of Canada's largest housing markets are in bubble territory for the first time in 30 years — and a U.S.-style correction is still not out of the question, according to a report from an Ottawa-based think tank.
The report by the Canadian Centre for Policy Alternatives, to be released Tuesday, says home prices now sit at 4.7 to 11.3 times Canadians’ annual income — much higher than historical comfort levels of between three and four times income.
"To see all of the (major) markets outside of that comfort zone is very unique and concerning," said David Macdonald, a research associate who authored the report entitled "Canada's Housing Bubble: An Accident Waiting To Happen."
Read entire article:
http://ca.news.finance.yahoo.com/print/s/31082010/2/biz-finance-housing-bubble-threat-resurfaces-prices-major-markets-hit.html
Sunny Freeman,
The Canadaian Press
August 31, 2010
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