Canadian House Prices ‘Bubbly,’ The Economist Says As Feds Mull More Mortgage Changes
The Economist has once again declared Canada’s housing market to be “bubbly,” in a survey that shows Canadian house prices to be 30-per-cent overvalued compared to incomes, and 74-per-cent overvalued compared to rental prices.
Canada’s housing market is still among the frothiest in the world, more than a year after the federal government moved to head off a bursting bubble, findings by The Economist suggest.
In results posted online over the long weekend, the magazine looked at how homes are overvalued or undervalued based on two measures: Price-to-rent and price-to-disposable income.
Where the first measure is concerned, The Economist found Canadian prices to be hugely overvalued, second among 18 countries studied.
Hong Kong was the highest, New Zealand ranked third behind Canada, and the rest weren’t even in shooting distance.
“On this basis, Canada’s house prices are bubbly whereas Japan’s are undeservedly flat,” the magazine said.
On the second measure, Canada ranked just behind France, while there was no comparison to Hong Kong.
The latest findings for Canada are just slightly better than those of last year, presumably the result of Finance Minister Jim Flaherty’s new mortgage restrictions just over a year ago.
Canadian house prices, The Economist said, climbed 1.9 per cent in the first quarter of the year from a year earlier, a slower pace than the 5 per cent in the same quarter of 2012.
Since 2008, Canadian home prices are up 20 per cent.
Canada’s residential real estate market slumped in the wake of those new rules, though has picked up again recently.
Indeed, as The Globe and Mail’s Tara Perkins reports today, Canada’s bank regulator, the Office of the Superintendent of Financial Institutions, has been looking closely at mortgage inflation from the nation’s financial institutions, a signal it could be planning another round of tightening.
New Listings Tue Sep 3 2013
C2727051 – M2R – 345 PATRICIA AVE Toronto, Ontario – $ 1,838,000
This Stunning/Chic Custom New Home,Conveniently Situated On A Desirable Street Near All Area Amenities.Unique Design/Unparalleled Features With Luxurious …
C2727077 – M3H – 225 MAXWELL ST Toronto, Ontario – $ 1,499,000
Show With Proud,No Comparables!Luxurious Living At It s Best. Apprx 4450 Sq.Ft.Plus Finished W/O Bsmnt With 9 F Ceiling. Resort-Style Ravine Lot In Prime …
E2707027 – M1S – 51 GARDEN PARK AVE Toronto, Ontario – $ 599,900
Price Change. Sep 3: $ 599,900 Aug 5: $ 612,000
Well Kept Home In A High Demand Neighborhood. Large 45 X 165Ft Lot. Great Opportunity To Add-On Or Build New. Newer Updates To Roof, Windows & Hvac. …
E2707773 – M1N – 107 QUEENSBURY AVE Toronto, Ontario – $ 679,000
Price Change. Sep 3: $ 679,000 Aug 20: $ 699,000 Aug 7: $ 729,000
Lots Of Up-Grades Recently. One Of Strongest House Built With All Bricks. Almost 300 …
E2727022 – M1E – 16 PLUMROSE BLVD Toronto, Ontario – $ 599,900
Well Kept Home In Lawrence/Manse , Minutes To Kingston Rd , Closer To All Amenities , Brand New …
E2727068 – M1N – 90 SOUTH OF KINGSTO DR Toronto, Ontario – $ 899,900
No Expense Spared On This Incredible Home, With Amazing Attention To Detail. Nice Large Backyard For Entertaining With Private Drive. Granite And Hardwood …
E2727082 – M1N – 156 EASTWOOD AVE Toronto, Ontario – $ 529,900
Exquisite And Bright Detached 2 Storey,3 Bedroom Birchcliffe Home|tastefully Modern Finishes & Decor|spacious Main Floor Living & Dining Area With …
W2727016 – M6E – 2140 EGLINTON AVE W Toronto, Ontario – $ 449,900
Large Townhome In A Great, Central Location! This Home Has Many Features Including A Large Combined Living And Dining Room With A Beautiful Staircase, …
W2727032 – M9L – 77 WHITFIELD AVE Toronto, Ontario – $ 550,000
The Investment Opportunity You Have Been Waiting For! Legal Non-Conforming Use: Triplex: Rare Zoning For This Neighbourhood. 3 X 2 Br Units With …
W2727052 – M6N – 473 OLD WESTON RD Toronto, Ontario – $ 529,900
Completly Renovated Property In Stockyards Area. Over $ 150,000 Spent On Renovations. Great Curb Appeal With Stucco Exterior. Open Concept Main Floor With …
W2727089 – M9V – 262 JOHN GARLAND BLVD Toronto, Ontario – $ 108,000
Investors & First Time Home Buyer, Stop Looking, Make This House Your s …