Cielo condos buzzbuzz. How dangerous the Canadian real estate bubble is. Of all the OECD countries, Canada has the worst real estate bubble.Please Visit: Cielo condos buzzbuzz to Get Your VVIP Registration Today!
According to an analysis by Deutsche Bank, the Canadian real estate market is 35 per cent overvalued compared to its historical average and 91 per cent overvalued in terms of the price-to-income ratio.
Combined with the two indicators, the Canadian real estate market is overvalued by 63%, followed by New Zealand, Belgium, Australia, Norway and the United Kingdom, with 56%, 53%, 49%, 46% and 38% overvalued respectively.
From an urban point of view, the Vancouver property market is valued higher than Sydney, Melbourne, London and New York in terms of the ratio of median house prices to median household income.
The real danger of the Canadian property bubble is that household leverage is very high and still rising. The chart below shows a comparison of household debt-to-income ratios in the United States and Canada. As can be seen from the picture, after the “subprime crisis”, American households entered a continuous process of deleveraging, while Canadian household debt continues to rise, which is now much higher than the peak of the “subprime crisis” in the United States.
Corresponding to the housing price bubble, real estate construction in Canada is also very hot. The construction of multi-family homes in Canada is now at an all-time high after a brief decline during the financial crisis, while about 7% of Canadian workers work in construction, nearly twice as much as in the United States.