Pimco says US and Canadian investors working under the assumption of a Canadian housing bubble may be too bearish.
“The great white short” is gaining popularity amongst hedge funds, but maybe they are being too pessimistic?
“Our secular view is that housing in Canada is overvalued and due for a correction,” he said. “We believe a 10%–20% real decline in national housing prices over a five-year period is very realistic, with much sharper corrections in some local ‘hot’ markets such as Toronto, Vancouver and Montreal.”
Read the full article in the Financial Post.
Meanwhile in yesterdays thread who is making money shared HPI results from the most recent 1, 3 and 5 year period:
For those of you who didn’t get the memo:
HPI INDEX June 2013 Lower Mainland (Total return)
1 yr. return -3.0%
3yr. return +4.6%
5 yr. return +5.7%
Total return with inflation
1 yr. -5.5%
3 yr. -2.9%
5 yr. -6.8%
I ask again, “WHO IS MAKING MONEY?”