Feb 03, 2014
By Michael Kramer
This may come as unsettling news for older zoomers relying on the value of their home for retirement security.
TD Bank estimates Canadian home prices are likely to be about 10 per cent overvalued – given the expectations for rising interest rates.
But Deutsche Bank puts it even higher – at 60 per cent – while others put the number in the area of around 30 per cent.
A report from TD economist Diana Petramala says the amount of over – valuation is a subject of considerable debate – depending on what measures are used to arrive at an estimate.
Petramala expects stable prices on average this year – and a decline of 2 per cent in 2015-16.
And the International Monetary Fund also said today that the Canadian market is overvalued – pegging it at the 10-per cent level.