Calgary housing 'bubble' at precarious 30-year peak, report cautions
Steep rise in 6 Canadian markets 'an accident waiting to happen,' warns Canadian Centre for Policy Alternatives
For the first time in three decades, a "synchronized housing bubble" has spread to six "red-hot" real estate markets in Canada, including Calgary, says a report released today by the Canadian Centre for Policy Alternatives.
The report, Canada's Housing Bubble: An Accident Waiting to Happen, which looks at trends in house prices in Calgary, Toronto, Vancouver, Edmonton, Montreal and Ottawa, says that between 1980 and 2010 increases were "outside of a historic comfort level."
The report says that on average, inflation-adjusted house prices in these cities have historically held stable at between $150,000 and $220,000 in today's dollars but current housing prices in all six major cities are now over $300,000 on average.
"The bursting of housing bubbles is a rare event in Canada but the steep rise in house prices in so many cities displays all the hallmarks of an accident waiting to happen," says David Macdonald, author of the report and research associate with the organization.
Read more: http://www.calgaryherald.com/business/Calgary+housing+bubble+precarious+year+peak+report+cautions/3463903/story.html#ixzz0yBrOFCF1