#1: Housing bubble may soon burst: group 作者: grinder, 来自: globe village 时间: 2010-8-31 10:44 ---- Housing bubble may soon burst: group
Last Updated: Tuesday, August 31, 2010 | 1:11 PM ET [url=#socialcomments]Comments309[/url][url=#]Recommend164[/url]
The Canadian Press
As Canada's record housing costs continue to slide, an Ottawa-based organization is suggesting parts of the nation are in a housing bubble, which may soon burst.
The Canadian Centre for Policy Alternatives is warning Canada may be facing a U.S. style housing bubble. (iStock)Prices in six of the country's largest housing markets have hit 30-year highs and are in bubble territory.
A report by the Canadian Centre for Policy Alternatives coming out Tuesday also says a U.S. style correction cannot be ruled out.
The Ottawa-based think-tank says home prices are 4.7 to 11.3 times Canadians' annual income — much higher than historical comfort levels.
Sales are down 25 per cent since reaching a peak at the start of the year, but in major cities, home prices were up 13.6 per cent in June from a year ago.
The centre warns that a rise of one per cent to 1.25 per cent in mortgage rates would be enough to cause a housing crash similar to the one in the U.S.
The report says bubbles occur when housing prices increase more rapidly than inflation, household incomes and economic growth.
