Todays Vancouver Province has an article on the growing risk of a US/UK style mortgage crisis in Canada. We’re building like crazy at a time when the rest of the world is slowing down, are we building our way into an over-supply situation or simply catching up?
Hall noted that housing starts in Canada are “soaring on the strength of the domestic economy and a huge dollop of very well-timed fiscal stimulus,” and that a continuing excess of housing starts over requirements means “Canada’s turn may come soon” for a housing crisis.
The report came in the wake of the Canadian government’s attempt to avoid a housing crisis by no longer insuring mortgages with more than 35-year amortization periods and less than five-per-cent down payments as of Oct. 15.
If fiscal stimulus results in overbuilding and a housing market crash, can it really be considered ‘well-timed’?
Hat tip to ‘bubblicious’ for the story link.
