Bubble trouble: The Economist says Canada has its very own housing bubble

The Economist set off a mini media firestorm in the Great White North this week by lumping Canada in among nine countries where “home prices are overvalued by about 25 per cent or more” (the Toronto condo boom apparently isn’t helping). Canada is also part of an even more prestigious club, standing with only three other countries where “housing looks more overvalued than it was in America at the peak of its bubble.” Yipes. Not everyone is nervous though. The Star quotes Ben Myers of Urbanation, who argues that the magazine’s methodology is “flawed” and simplistic. Meanwhile, the Huffington Post Canada links to a story that claims the country’s housing market not only is strong and resilient but also has “rippling muscles.” Read the entire story [The Economist] »

(Images: Toronto skyline—Seekdes (Mike in TO); bubble—Rhett Maxwell)