Canadian Business has published a counterpoint to their article about why the Canadian housing market is about to crash. Anyone have some comments/rebuttal for the 5 issues he cites? Note he makes an exception for Vancouver in reason No. 2.
Summary of the reasons:
1. Interest rates will be low unless the economy is growing in which case there will be lots of jobs.
2. Real estate is local, Vancouver might be overpriced, but New Brunswick isn’t
3. Predictions of a bust are simply based on seeing the US market bust and has nothing to do with reality
4. Lenders have recourse to go after people in Canada and there’s less subprime
5. Price-to-rent and price-to-income ratios don’t indicate a turning point.
Here’s the full article.