Canada's housing market is reaching the limits of sustainability and could tumble if there is no moderation, the Bank of Montreal says...
But that is not the case in all markets. Five provinces are currently in the danger zone, led by Saskatchewan, where the ratio is 39 per cent above historic norms.
Also well above the long-run levels is Newfoundland, 34 per cent higher; British Columbia and Manitoba, 31 per cent, and Quebec, 23 per cent above.
By comparison, in Ontario, the price-to-income ratio is only 10 per cent higher than historic norms, suggesting prices are moderately overvalued but not in bubble territory.
Source: The Globe and Mail
The Canadian Press
Published Friday, Mar. 04, 2011 8:31AM EST
Last updated Friday, Mar. 04, 2011 8:49AM EST
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