This Week’s Top Stories: Canadian Real Estate’s Epic Overvaluation and US New Home Inventory Hits 2008 High


Time for your cheat sheet on this week’s top stories.

Canadian Real Estate

How Much Will Canadian Real Estate Crash? Stability Requires A Big Correction: BMO

Canada’s oldest bank sees massive overvaluations across the country. BMO estimates home prices are 38% overvalued in Q1 2022, a level never before seen. Home prices are expected to correct, but won’t cause a 2008-style meltdown. Borrowers have been stress tested which should limit the possibility of capitulation.

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Toronto and Vancouver Real Estate Too Expensive? Try Cheaper Markets… Like NYC

Are Canada’s major cities becoming too expensive? Perhaps you should consider moving to someplace more affordable — like New York City. Exuberance pushed the median home price in Greater Toronto ($1,098,000) and Greater Vancouver (C$1,374,000), well out of reach for most. Homebuyers often believe they’re buying early into a NYC type opportunity. Thinking about all of the money they’ll make,…

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