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Fears of Canadian housing bubble dwindle

Dec 16, 2009

Listings up, prices down in November, signalling a return to normalcy in what has been an extremely volatile market

(Source: Globe and Mail)

Canada’s real estate market is finding its balance.

A surge in new listings in November helped ease a chronic supply shortage and temper prices from a month earlier, easing fears of a bubble in the making even, though the rebound in the market continued unabated.

That’s what economists were looking for because a steady string of monthly price increases could inflate an asset bubble and lead to a severe correction when interest rates eventually rise. For the past several months, prices have been rising month-over-month, with double-digit percentage increases posted year-over-year.

Read Steve Ladurantaye’s full article “Fears of Canadian housing bubble dwindle” in the Globe and Mail (December 15, 2009).

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