Nouriel Roubini, who has been known to speak the words of gloom and doom on numerous occasions, says that the Canadian housing market is not primed to crash anytime soon. Instead, he believes that a correction will occur instead.

Roubini added that the value of the loonie is too strong at this point, despite reports of its value dropping daily, which poses a challenge to the manufacturing sector. Additionally, Roubini suggested the Bank of Canada should employ a more aggressive monetary policy to weaken the loonie.

“I’m not predicting a crash, but certainly a meaningful correction could occur, and that would be something that could, of course, dampen the economy that is already growing moderately,” Roubini said in an interview with Reuters Canada.

While he indicated that the high level of household debt is a majoro nationwide concern, Roubini acknowledged there are many differences between Canada's housing market and that of the U.S., which experienced a crash in 2007-2008. One major difference between the two, says Roubini, is the over-usage of subprime mortgages in the U.S. and stronger banks in Canada.

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