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Late to the party: IMF adds its ‘overvalued’ report to the bunch

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Real Estate Professional | 04 Feb 2015, 09:31 AM Agree 0
The International Monetary Fund (IMF) has hopped on the bandwagon, declaring Canada’s housing market overvalued, though it still predicts a “soft landing”.
  • | 04 Feb 2015, 10:28 AM Agree 0
    Blah blah blah. More experts and their opinions! So, some university grad is sitting somewhere in Europe and crunching some stats numbers that another dude in India collected about Canada from various publications. Then they compare this to the rest of the world and declare "the market in Canada is overvalued". Not having your feet on the ground and appreciating fully the nuances and forces of local markets, excludes IMF even from a list of hopeless experts similar to those that work for at least Canadian banks. I hope media would stop giving these people the time of day. Seriously!
  • Michael | 04 Feb 2015, 04:24 PM Agree 0
    It's NOT only about supply & demand !
    Having experienced housing prices fluctuations over the past 40 years, the price decreases of 1974, 2002 and 1989 (followed by severe recession of the early '90's), were caused by different economic factors. The recent past increases in prices, especially in the Toronto area, are caused by high demand & VERY low supply, but this will not be sustained.....the basic problem is that buyers simply won't be able to afford further price increases...wages have NOT kept up with price increases ! They simply won't be able qualify for the higher amount of financing required for higher prices. We will soon see prices level off...AND...when interest rates go back to "normal",
    well...Do I need to repeat the forecasts of the "experts"? If we don't learn from the past, we will be doomed to repeat it!
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