The Canadian Centre for Policy Alternatives yesterday released a study title "Canada's Housing Bubble - An Accident Waiting to Happen" in which they state that "for the first time in 30 years, six of Canada's hottest real estate markets are in a housing bubble." The study examined trends in house prices in Toronto, Vancouver, Calgary, Edmonton, Montreal and Ottawa between 1980 and 2010.
The Globe and Mail reported on the study today with a feature titled "Why the housing market may be heading for correction" which illustrates the main points of the report.
The question is, is a coming real estate correction real or imaginary?
I've lived in Vancouver for the past 22 years until a recent move to Toronto and I've seen prices rise dramatically in the last 8 years. From my perspective the market is in serious need of a correction. The percentage of income home owners spend on their mortgage is alarming high. It's not sustainable if you plan to retire with any comfort. We're seeing a fundamental long term shift in housing affordability. The consequences should be of concern to everyone.