Housing bubble
Posted Nov 18, 2010 03:26:55 AM.
This article is more than 5 years old.
The economist who received an award for being the first to sound the alarm on the U.S. housing bubble, is warning the same could happen in Canada if we aren’t careful.
Dean Baker with the Centre for Economic Policy and Research says housing prices here might collapse if interest rates rise by about two percentage points.
But George Patton with the K-W Real Estate Board is putting very little stock in Baker’s prediction.
He suggests the local housing market will remain stable for at least the next five months.
Patton agrees that if interest rates rise, it could be a problem because more people would rush into the market to purchase.
But he says it won’t cause the housing prices to tumble.
Baker wants Ottawa to tighten regulations to prevent that from happening.
