Economist Will Dunning released a report today entitled, “How To Dissect A Housing Bubble” that refutes the widespread consensus that Canadian housing is overvalued.
In fact, Mr. Dunning makes the case that house prices in Canada are under-valued (relative to interest rates and rents) by as much as 20%. He states that even allowing for a rise in rates, his analysis indicates that house prices are still not overvalued. (Unfortunately, Calgary’s market isn’t really touched on due to “insufficient data.”)
Interested in reading how he came to this conclusion? You can download his report here.