It’s official: Canada’s housing market is overpriced.
According to The Economist, Canada is 7th out of 12 overpriced real estate markets, after the usual suspects of Britain, Hong Kong, Sweden and Australia.
The newspaper explains that the Canadian market is overvalued by 23.9% and is technically a bubble. However, a strong loonie backed by rising commodity prices is expected to keep the party going for the near term.
In any event, compared to Hong Kong (overvalued by 58.1%) and Australia (63.2%) our real estate market is a bargain.