Housing bubble or prudent investment?
Some analysts argue that the housing market is way overpriced. But, a study by the National Bank suggests otherwise and that a crash is awfully unlikely.
It is the belief of some that the Canadian housing market is headed for a crash. This article from the Ottawa Citizen shows that this concern is based primarily on perception, and two recent market analyses prove that this negativity can easily be dismissed.
In a conversation with Matthieu Arsenau, a representative from the National Bank, it is illustrated that analyzing the market by measuring the amount of a current mortgage payment against mortgage payments of the past shows that the rise in the expense is not excessive. It is also proven that although the percentage of Canadians able to afford a new home is continuing to rise and interest rates are staying moderate, there is still unused borrowing room. The majority is staying well informed regarding the housing market and being cautious regarding borrowing.