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How Vulnerable Are Canadian Housing Prices?

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By
Benjamin Tal - Deputy Chief Economist, CIBC World Markets

So is it a bubble? Glancing at popular metrics such as the price-to-income ratio or the price-to-rent ratio, it is tempting to conclude that the housing market is already in clear bubble territory and a huge crash is inevitable. Tempting, but probably wrong. When it comes to the Canadian real estate market at this stage of the cycle, any statement based on average numbers can be hugely misleading. The truth is buried in the details—and there the picture is still not pretty, but much less alarming.

For the full article, please click on the link below

http://research.cibcwm.com/economic_public/download/feature2.pdf
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