According to Canada Mortgage and Housing Corporation analyst Lukas Jasmin-Tucci, while there is evidence in the last two quarters that price acceleration in the Montreal market is problematic and that there is now moderate overheating of the market, overvaluation of the market remains low. There is a caveat to this statement in that house prices adjusted for inflation (real house prices) rose sharply in recent quarters but growth in personal disposable income and population in the 25 to 34 range saw smaller gains. Overvaluation therefore remains a possibility in the near future. The complete CMHC report and the excerpt for Montreal can be found at the links below.
27
Sep
Has Montreal market overheated?
Posted by: John Burgess