This article from the November 2007 issue of MoneySense Magazine looks at prices across Canada and asks the question Are home prices peaking?
Even banks are admitting that after a decade of unthrottled expansion, Canadaâ€™s real estate boom may finally be losing steam.
The average price of a home in Canada recently topped $310,000, a gain of 60% in real terms in just nine years. Canadians havenâ€™t witnessed a boom like this since just after World War IIâ€”and itâ€™s clearly not sustainable. If prices continued to rise at their current rate, the average house would fetch $10 million by 2037. Since that doesnâ€™t seem plausible, the big question is not whether the current boom will stop, but when.