The Canadian Centre for Policy Alternatives has stirred up talk in Canada of a possible housing bubble. In their report titled “An accident waiting to happen”, the CCPA reports that the housing markets in six major real estate markets in Canada are in danger of a very large adjustment: as much as a 38% drop in value over the next three years.
The CCPA report states Canada has had only three housing bubbles burst, twice in Vancouver and once in Toronto. The report focuses on the two most recent bubbles, as well as the 2006 housing market collapse in the USA, to assess how bad a correction might be. The report sets out three scenarios. The first scenario is a market correction through housing price deflation. The second scenario, a slow burst of the bubble over a period of time, would shield consumers from the shock of the decline, but result in the largest correction. The worse-case scenario is a rapid burst of the bubble- a meltdown of the housing market.
The CCPA has the report available at this address:
For more information on the CCPA, the following information has been pulled from their website.
The Canadian Centre for Policy Alternatives is an independent, non-partisan research institute concerned with issues of social, economic and environmental justice. Founded in 1980, the CCPA is one of Canada’s leading progressive voices in public policy debates.
We have a National Office in Ottawa, and provincial offices in British Columbia, Saskatchewan, Manitoba, Ontario, and Nova Scotia.
Original, hard-hitting research
We work with top-notch researchers to shed light on the key issues facing Canada. Whether it’s the push to privatize our health care system, the growing gap between the rich and the rest of us, or gas companies gouging us at the pump, we set the record straight.
CCPA research doesn’t just sit on a shelf gathering dust. Every month, we are featured in hundreds of media stories. The CCPA is a strong and credible voice in news about issues like how to deal with surgical waitlists in health care, how we should use provincial and federal budget surpluses, the high number of Canadian military casualties in Afghanistan… and many others.
The CCPA debunks myths—like the myth that an aging population will cripple public health care, or that meeting our climate change obligations is a job-killer. Our monthly magazine, The Monitor, is packed with facts and analysis that will help you untangle the spin.
We don’t just analyze problems. We work on solutions—solutions that show Canadians’ best values are not only possible, they’re practical. These ideas are anchored by some basic principles: human dignity and freedom, fairness, equality, environmental sustainability, and the public good. They show that we can afford to build a more just and sustainable Canada—and that our economy will be stronger for it.
The CCPA is a registered non-profit charity. We depend on the support of our more than 12,000 members across Canada.
You can find out more about the CCPA here: http://www.policyalternatives.ca