Special Report — Is the Canadian Housing Market in a Bubble?

Posted by David Rosenberg - Gluskin Sheff

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It sure looks that way.

In Canada, nationwide average home prices are now more than 20% year- over-year…

At a time when personal income is down around 1% over the past year, we have seen nationwide average home prices soar over 20% and last month hit a record high; as did home sales.  In real terms, home price appreciation is back to where it was in 1989.  Of course, back then, interest rates were far higher but then again, the economy was in the late stages of a phenomenal multi-year economic expansion, not making a transition from deep recession to nascent recovery.

….read the entire report HERE.


(Earlier Today)


The reason why gold is back to a four-week low is because the bull trade became very overcrowded and the yellow metal was ripe for correction after a parabolic move, but what a buying opportunity this is going to prove to be.  Of course, the U.S. dollar has recovered from the abyss, but only for now.  While the greenback has re-emerged as a safety-valve, what makes gold special is that it is not responsive to global economic shifts or is it any government’s liability.   The situation in Europe is troubling — fiscal concerns are mounting, not just in Greece and Ireland (where deficit ratios are north of 9%) but also the U.K., Spain and Portugal (though Ireland did come out with a very austere budget last week).

….read David’s Breakfast Lite summary HERE

….read David’s full Breakfast with Dave commentary HERE.