Last month, the Teranet-National Bank National Composite House Price Index showed that Canadian house price gains while moderating across the board are still robust. Combined with recent evidence of a precipitous drop in transaction volume, however, it is clear that air is coming out of the Canadian house price bubble.
Canadian policy makers have been trying to get the housing market in Canada under control for some time, tightening mortgage financing rules last month to help reduce record Canadian household debt levels. Home prices have increased over 85% in Canada over the last decade as record low interest rates, a lack of inventory and a relatively benign economic outlook in the face of crises elsewhere have buoyed the market. House prices in Canada now go for 12 times personal dis...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.