OECD warning over Canada’s overvalued housing, high debt

By Steve Randall
International economic think tank OECD says the Canadian economy is generally in good shape heading into 2017 but has again raised concern about house prices and household debt.

In its latest global economic outlook this week, the organization says that Canada’s “house prices, housing investment and household debt are very high, posing financial stability risks.”

Citing a potential correction for Vancouver and Toronto, the OECD suggests that it could be “disorderly” and lead to a sharp increase in mortgage defaults. The greatest risk it says, is from a rise in unemployment.

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