IMF warns that Canadian houses are 10% overvalued on average with high variation by area. Also the currency is overvalued.
IMF says Canada housing overvalued, urges more action if needed
Hat tip: vangirl at vancouvercondo.info
The International Monetary Fund, in its annual report on Canada, also said the country's currency was between 5 and 15 percent higher than warranted by long-term economic fundamentals, lifted in part by commodity prices and the country's safe-haven status for investors.
Like Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty, the IMF worries that highly indebted Canadians make the country more vulnerable to an external shock that could lead to job losses and bankruptcies.
1 comment:
Christopher,
Real estate is not an investment over the long term, it was proven numerous times, including Shiller who proved that over hundred year period real estate performed flat as an investment vehicle. Yes in a short term you can definitely make money, but at cost of developing boom and bust cycles. Some will profit, but that profit comes at a later loss. Check out the last graph on my post about imf report.
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