It seems only a short time ago that I was writing about a Housing Bubble and over inflated prices. I did not agree with the experts then and now I disagree with the opinion now that housing prices are over inflated.
Fitch rating service stated this week that Canadian House prices were in for a 21 % correction. However, our Head of the Bank of Canada stated yesterday that " Housing is not in a bubble, and not likely to suffer a sudden or sharp correction in prices , unless there is a major global SHOCK "
He also disagrees with the OCED who is calling for Canada to raise interest rates. Mr Poloz disagrees and stated that there is still slack in the economy and with inflation at 1.1% it is well under the target rate of 2%.
We have seen only a small increase in house prices in Peterborough and with low interest rates, housing prices are still very Affordable!