Housing market poised for ‘severe correction,’ finance professor says
Date Posted: February 21, 2012
Canada's current house market is thriving thanks to the recent decrease in mortgage rates. This interview with George Athanassakos, a professor of finance at the Richard Ivey School of Business shows housing investment as a percentage of the gross domestic product (GDP). Historically, when this ratio reaches the 7% mark, the price of the average home tends to decrease. Based on figures from Statistics Canada, the ratio of Canada's housing investment to GDP is currently close to reaching 7%, meaning we should see a correction in home prices in the coming months.
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