David Rosenberg, chief economist with Gluskin Sheff & Associates Inc., says housing values are 15% to 25% above where they should be based on personal income and residential rental rates…Bank of Montreal Economist Douglas Porter says “We’re on the bubble of a bubble…we could see a bit of a buying frenzy this coming spring…followed by a ‘pop’ in 2011.”…

What a difference a year makes. Last November, the economy was said to be on the verge of the next Great Depression, sucking the life out of a housing market that was coming off a record year in 2007.

Flash forward 12 months. The Canadian Real Estate Association said yesterday existing-home sales in November were up 73% from a year ago and prices rose 19% during the same period. The fear now is that the housing market is too hot, stoked by record-low interest rates.

Read the full article by Garry Marr, “Housing bubble theorists abound” in the Vancouver Sun (Dec. 16 2009).

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