Sympathy for the Doomster Devil

Three reasons bears predictions have not come true for Canadian housing:

Extremely easy monetary policy
Demographics (the echo boom)
Foreign Buying
Three ‘unusual’ reasons you should have sympathy for Canada’s housing doomsters

Over the past 11 years average housing prices have doubled despite the recession, mortgage debt has topped $1.23-trillion (a record 60% of GDP) and Canada’s housing market is fully valued by price to rent and price to income measures.

But he points out that this remedy [demographics] has a short shelf life. BMO economists expect demographics to turn against the housing market by the turn of the decade, just when rising interest rates really begin to bite, creating a “potential double-whammy” for housing.