The Economist recently crunched some numbers and found that Canadian real estate is overvalued by a whopping 78 percent. The Canadian Business magazine did an interesting post about the study, here’s the (link).
With an overvaluation of 78 percent, Canadian was ahead of Hong Kong (overvalued by 69 percent) according to the post. The U.S. market is currently undervalued by 7 percent.
A possible real estate bubble burst is becoming a big concern in Canada. According to several reports, home prices have started dropping in British Columbia, including Vancouver and Victoria. If the price drop becomes substantial, it could have an impact here in Whatcom County.