Are Canadian Real Estate Prices Overvalued?

Skip to contentSearch for listings & agents on remax.ca global.remax.comMy AccountApril 10, 2024Is Canadian real estate overvalued? There has been considerable debate as to whether the country’s housing sector is in a bubble or simply suffers from a supply shortage. Nobody will argue the fact that residential prices have rocketed nationwide in the last few years, fuelled by interprovincial migration, population growth, historically low interest rates, and putrid inventory levels.Even in a 5% interest-rate climate, the national average price for a home in Canada has risen to nearly $700,000.By comparison, it was below $500,000 before the public health crisis.So, does the notable increase equate to an overvalued Canadian real estate market?Are Canadian Real Estate Prices Overvalued?Economists will debate the fundamentals of the Canadian real estate market. In April 2023, Moody’s Analytics released an in-depth report that assessed the struggles ahead for Canada’s housing market. The econo...