Another day another Canadian housing bubble story, this one in the star.
Some of the themes may be familiar to you.
High debt loads, out of whack ratios for debt to income and rent to buy variables. Government guarantees.
Housing in Canada is unaffordable. International experts are unequivocal in their concern, and Canadian lawmakers are taking measures to deflate slowly rather than crash. Ironically, only Canadian homebuyers seem to think the market is sustainable. Sale prices are still rising. So when does it all start to unwind? Right about now.
Since the Great Recession, the Canadian economic model has basked in international reverence for its conservative banks and rich commodity sector. So when Wall Street rumblings about a Canadian housing bubble started becoming louder about a year ago, as a card-carrying Canadian, I took notice.
Read the full article here.