A new report from the International Monetary Fund (IMF) claims the Canadian housing market is overvalued by about 20%.
While some parts of the country have overvaluation rates at 7%, the IMF said there are also signs of cooling “especially in overheated markets”. The IMF report follows a recent Fitch Ratings study on the housing market that echoed the overvaluation rate.
The IMF added that “lower oil prices would be a headwind against financial growth in Canada” and that it expects the market crash to be in the form of a “soft landing” rather than a US-style housing bubble.
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