Canadian property 20pc overvalued

Canadian property is overvalued by 20 per cent, according to a new report by Fitch Ratings.

The analysis says that national prices in Canada are now overvalued by one-fifth in real terms, with house prices climbing steadily for more than 10 years, with the exception of a short blip in 2008.

Despite that overvaluation, home values are expected to remain flat in 2014, thanks to the country's strong economy, which successfully weathered the 2008 crash and seen a rapidly diminished exposure to risky mortgage products.

A record number of housing units are currently being built, adds Fitch's report, also noting that consumer debt levels have risen too, keeping pace with price increases.

Source: Property Wire