This does not necessarily imply that Canada’s real estate sector is in some sort of bubble scenario. There is steady economic growth in the country due to its resource based economy, so it would be natural to think that global demand for resources is closely linked to the the country’s real estate market. Watching the trend for resource demand may tell you more about Canada’s real estate market than just the real estate data alone.
Nevertheless, it would appear Canada does have some sort of mis-allocation of capital into real estate, and that the bubble may be close to popping.
Business Insider Emails & Alerts
Site highlights each day to your inbox.