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Is there a housing bubble?

The Canadian Real Estate Association boosted its home sales forecast for the year by 6.6 per cent and projected price will climb 4.2 per cent to a record $317,900. MLS.expects 460,200 units will sell in 2009.  Home buyers take advantage of very favourable mortgage rates, with the economy slowly regaining its footing, housing market to remain largely intact.  However, the back to back double -digit advance in sales this may not be repeated.  All of which begs the question: Is there a housing bubble?  Many economists reject this notion. although Scotia Capital said this is probably the case. But, with the low rates, mortgage innovation and a relative shortage of new supply are likely to keep it going for a while yet.

 

Posted by Susanna McLean on November 16, 2009
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