Advertisement
Canadian real estate is overvalued by 20%. This doesn't mean your home is worth 20% less. If prices do drop, it will be closer to 10%, and in certain parts of the country it's already happening.
More than a few media headlines are focusing on Canada’s overvalued real estate. According to Fitch, an American-based ratings agency, housing prices in Canada are 20% overvalued in real terms. The fine print, however, is that this overvaluation only applies to a couple of major urban centres, such as Toronto, Vancouver and Montreal.
In their new financial model report, Fitch analysts noted that housing prices in Canada have continued to climb since 1996 and, while small corrections have occurred, these prices have risen without the support of underlying financial fundamentals.
For that reason, the ratings agency suggests that the overvaluation of real estate in certain provinces is in the double digits. For instance:
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Despite a recent 35% drop, Bitcoin remains the top-performing major asset over five years, outpacing stocks, gold, silver, and...
A DB pension plan member may have the opportunity to buy back pensionable service to increase their future pension....
Under what circumstances can you obtain the greatest tax savings on this $2,000 credit?
Learn how the CRA’s updated Voluntary Disclosures Program works, who qualifies, and what relief you can expect if...
Experts weigh in on how the classic 4% withdrawal rule is evolving—and how retirees can tailor it to their...
Allan Small explains why it’s always the right time to be in the markets—even when they are near record...
A MoneySense reader wants to pre-fund the ongoing expenses for her house to make it easier for her kids...
David Chilton’s The Wealthy Barber returns for 2025, updated for today’s costs, new investment tools, and a new generation...
Different retirement income strategies using registered accounts produce different outcomes. You must pick your priorities.
Get the latest on 2025 trust and bare trust tax filing requirements in Canada, including CRA updates, exemptions, and...