Real Estate market in Canada is overvalued.

 Canadian’s Real Estate market is one of the most overvalued market among developed countries. According to the Deutsche Bank data, overvaluation for residence and housing is 63%. Canada is ahead of such countries with expensive housing, as New Leland (56%) and Belgium (53%)

 According to economy statistic, the relativity of total debt of Canadians to their net income is 162.6%. In other words, for every owed dollar a Canadian  have to return one dollar and almost 63 cents.

Nevertheless, in Canada, real estate demand is growing. In GTA demand is higher then supply, and yearly sales growing by 38%. Since the demand for real estate in Toronto and GTA is high, houses are not sitting long on MLS , but selling quickly and often with over asking price.


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One thought on “Real Estate market in Canada is overvalued.

  1. So how is it overvalued if it’s priced according to a strong demand? If it’s supported by demand, the value must be correct. I think you can’t separate “debt” from the actual cost of borrowing at a given time, which is in large measure influenced by interest rates. And they show no sign of going anywhere.


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