Fears Of A Canadian Real Estate Bubble May Be Unfounded
Fears Of A Canadian Real Estate Bubble May Be Unfounded
Pascal Gauthier of the Toronto-Dominion Bank mentioned that the bubble situation "made a lot of people nervous," anticipating a huge crash comparable to the 30 percent drop in U.S. housing values. But he says this summer he is finding a "180-degree turn from six months ago," and that the temporary factors that boosted values have only translated in a modest fall in a sector that was clearly overvalued. Even though the markets in Toronto and Vancouver may undergo a 7% drop that will bring down the national average, Gauthier believes they will carry most of of the decline, while regions like the Maritimes and The Prairies and may well find by the end of the year that they are experiencing gains once again.