New data from Deutsche Bank’s chief international economist Torsten Slok claims Canadian residential real estate is dramatically overvalued by 63%.
Slok said the country’s housing market is 35% overvalued when compared to incomes, and 91% overvalued when compared to rents.
His figures are far from the Bank of Canada estimates, saying the market is overvalued by between 10% and 30%.
“Canada is in serious trouble,” a chart from Slok’s report stated, showing Canada’s household debt, as a percentage of income, climb to 50% above current levels in the U.S.
Slok’s numbers are near the figures of The Economist magazine, which has been calling Canada’s housing market overvalued over the years. The Economist pegs it at 32%, when compared to incomes, and 75%, when compared to rents.

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