Canada Shows Signs of Housing Bubble, Bloomberg Reports in 2019

Toronto City

 

Canada and New Zealand are the most vulnerable economies to a correction in house prices, with Australia and the U.K. also drawing concern, according to new research from Bloomberg Economics.

 

Seeking to build a “housing bubble dashboard,” economist Niraj Shah studied ratios of house prices to rent and income as well as inflation-adjusted prices and household credit.

 

The results showed that Canada and New Zealand seem to be on the most unsustainable path, with the cost of housing compared with wages the highest in the world in both countries. Australia, Norway, Sweden and the U.K. also raise alarm bells, Shah said.

 

Policy makers may be acting already. Canada’s government has introduced a tax on foreign buyers, while overseas purchases have been banned in New Zealand. The next challenge will be whether prices keep rising as the Federal Reserve and other central banks get ready to cut interest rates.

 

“There’s a risk that a global round of monetary easing may fuel housing bubbles,” said Shah. “While central bankers are focused on avoiding a global economic downturn, looser monetary policy could sow the seeds of the next crisis.”

 

Source: Bloomberg

 

Thinking to sell your house or Condo in Central Toronto areas and/or in downtown Toronto areas? Please call, text or email Max Seal, Broker at 647-294-1177. Please visit http://www.TorontoHomesMax.com for a FREE  Home Evaluation“.

 

Thinking to buy a House or Condo in Central Toronto areas and/or in Downtown Toronto areas? please call or text Max Seal, Broker at 647-294-1177 to buy your dream home or Condo. I offer you a 30-min “FREE buyer’s consultation” with NO obligation. 

Please visit my website http://www.centraltorontorealestate.com/ to find out available homes and Condos for sale in Central Toronto areas and/or in downtown Toronto areas.

 

This Toronto housing market may be a better time for “Move-up”, “Move-down” or “Empty-nester” Sellers and Buyers. Want a “Market Update” of your home in 2019? Please click the image below or call or text Max Seal, Broker at 647-294-1177 or send an email.

 

Please follow and like us:
RSS
Follow by Email
Facebook
Twitter
Pinterest
Pinterest
LinkedIn
Totonto Market Evaluation Online

Easy Related Posts

Write a Reply or Comment

Your email address will not be published.


You may use these HTMLtags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>