Canada Housing Prices May Fall, David Dodge Tells Globe & Mail
http://www.fxfxfx.com 2010-02-15 21:29:09
House prices in Canada are more
likely to fall than climb in the next few years, former Bank of
Canada Governor David Dodge told the Globe & Mail newspaper in
an interview.
Real estate prices “look pretty high by any conventional measure,” the Globe cited Dodge as saying in the interview. “So, the likelihood of house prices falling a bit over the next few years is probably somewhat greater than that they would rise over the next few years.”
Canada has probably entered “a fairly long period of relatively slow income growth,” which will hurt the housing market, Dodge told the Globe. He also expects mortgage rates to rise, the newspaper reported.
Dodge told the Globe it’s only possible to identify housing bubbles after the fact.
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