While Canadian households may be setting new highs in debt-to-income ratios, the country’s corporations, governments and citizens are in a much stronger position to handle that risk, a new report from the Bank of Nova Scotia said Thursday.
Canada’s real estate market is due for a “moderate correction†with homes that are anywhere from 10 to 15 per cent overvalued, says the TD Bank.
“The excessive pricing of Canadian housing in relation to fundamentals is now clearly correcting,†TD Bank economist Grant Bishop said in an economic note Monday. “We expect a moderate correction in prices over the coming year.â€