Canadian real estate prices are up an average of 86 per cent in the past decade.

(Source: CBC News)

Canadian real estate prices are inflated, but they’re unlikely to correct themselves in the short term, a Bank of Nova Scotia report suggests.

“Canadian house prices are rich no matter how one looks at it,” Scotia economists Derek Holt and Karen Cordes said in a report titled Is There a Canadian Housing Bubble?

Of the many ways of gauging the health of a real estate market, affordability is one of the least useful because any measure that essentially compares income with mortgage payments is dependent on interest rates, Holt said Tuesday. Rates are at record lows at the moment, as the Bank of Canada’s benchmark rate sits at 0.25 per cent.

Read the full article “Scotiabank hints at housing bubble” in the CBC News (November 24, 2009)

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