Several of Canada's top experts and economists agree that the Canadian housing market is overvalued, according to a CBC News report. But the main question is by how much.
TD economist Diana Petramala notes that the figure is 10 per cent. The International Monetary Fund agrees, estimating Canada's real estate is 10 per cent too expensive, according to an assessment of the Canadian economy released today.
Petramala admits she was surprised by the sharp spike in housing prices in 2013 – about 10 per cent across Canada – but she expects rising rates to cool things down over the coming few years.
While 2014 is likely to see stable prices on average, the bank estimated prices would slip down by 2 per cent in 2015-16.
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