Globe and Mail
Policy makers in Ottawa have been taking some comfort from signs Canadian home prices have been moderating lately. They shouldn't. If Toronto-Dominion Bank economist Diana Petramala is correct, home prices might be on their way up again. That would be disappointing news to those in Ottawa who, until recently, were fairly certain they had steered the housing market toward a soft landing. Under that scenario house prices were supposed to slowly lose some steam, rather than go through a major correction. Most economists agree that home prices are inflated, and, coupled with high consumer debt levels, pose a risk to the economy.