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Tuesday, August 23rd, 2016

Housing Booms North of the Border

Some Economists See Canada’s Market Ripe for a Correction, With Debt Rising to Worrisome Levels

BY MONICA GUTSCHI AND DON CURREN

TORONTO—As much of the U.S. housing market limps along, home prices north of the border are on a fresh tear, fired up in part by a borrowing binge that has sent Canadiansdebt to record levels—and now higher than their notoriously profligate U.S. neighbors—while income growth pokes along.

All that has raised worry at the country’s central bank, which repeatedly has warned about rising debt levels, and among some economists, who say the market is ripe for a correction—maybe a steep one.

David Madani, Canada economist at Capital Economics, says Canadian housing prices could be in for a 25% drop …

read full article in Wall Street Jounal

 

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