Housing Booms North of the Border
March 30, 2011 by Adil Virani
Filed under Latest News, Latest Rates, Mortgage FAQ, Recent News
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 Canadians‘ debt 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