Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.94%0.02
Real Estate

Canada fails to learn from its Southern neighbors

Housing market starts to mimic a bubble

While Canada may be located directly north of the U.S., it is not close enough to learn from America’s housing mistakes.

 "We believe it is official that Canada’s housing market is frothy and in danger of a correction.  Home prices when viewed as an index have soared, surpassing the height of the US housing bubble," said Chris Muoio, senior associate and economist with Auction.com Research.

Home prices are continuing to outpace income rapidly, which can continue as long as home prices continue to appreciate also, Muoio explained.  

But once home prices cease to appreciate, it could potentially lead to a crisis similar to the one experienced in the U.S.

"The unwind probably will not be as devastating as the U.S. housing meltdown, as there is less leverage in the Canadian financial," Muoio said. "However, this market looks to be in danger that home prices have reached an unsustainable level and the Canada housing market is in danger of a reversal."

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please