Canada housing bubble sure thing

The debate continues with more economic experts cming forward to support the 'bubble' theory in Canada's real estate circles.

The opinion of many economist and financial specialists in the country is that the price of real estate in Canada is way too high and that the situation has been fuelled by low interest rates resulting in cheap mortgages. This feeling is not held by the government minister Jim Flaherty who sees no clear evidence of a housing bubble according to recent reports.

The Canadian Real Estate Association (CREA) this week predicted that Canadian property for sale would continue to escalate in price this year to record highs encouraged by low interest rates, which are expected to be held through June at the record low of 0.25 per cent by the Bank of Canada.

Concern is growing for real estate owners in Canada that they are overstretching their annual spending budgets and creating growing debt levels which could bring problems when interest rates and mortgage payments do increase as they inevitably will.