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 neededHat 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.