Housing Briefing: Bubble Fears Overblown
The Conference Board of Canada, 20 pages
This briefing examines the economic conditions and housing markets in Canada, focusing on the larger centres of Vancouver, Calgary, Edmonton, Toronto, Ottawa, and Montréal.
- A stable economy is buoying Canadian housing markets, despite regulatory cooling attempts.
- Housing bubble fears hinge on ratios of house prices to apartment rents and to incomes. These ratios are high, but misleading. The ratio of mortgage payments to rents and to incomes are better indicators and much less alarming.
- The low proportion of mortgages in arrears suggests that any market downturn would not be amplified by a wave of “distressed” home sales, as in the United States.
- Resale markets in major cities are generally balanced.