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

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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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