Back in 2008, I wondered how sustainable the rise in Canadian home prices was, but the market has continued to rise. Concerns are rising though, as evidenced by two pieces from the Globe and Mail yesterday. One was this opinion from Bank of Montreal’s CEO Bill Downe:
“We took a long, hard look at the Canadian housing market and concluded … there was a legitimate concern that house prices – particularly in the largest cities – had been rising at a rate that was simply unsustainable,” Mr. Downe said.
“With growing concerns over household debt, a soft landing in housing is in the best interests of our customers and the national economy.”
The other was piece was this brief comment by the Globe and Mail’s financial columnist Rob Carrick he called Our housing bubble beats their housing bubble:
Canadian cities dominate this global listing of Google searches for “housing bubble”. [Click here to see image full size.]
Does this mean a “pop” is imminent? Maybe not, but as we’ve discovered here south of the border, soft landings can be tough to engineer.