The Canadian Property Bubble Reaches Contagion, Making A Financial Crisis Likely

Author: External Author | | Categories: Financial Advisors , Mortgage Broker , Mortgage Rates

Prices just outside of frothy Canadian real estate markets are growing much faster than in the city. That’s typical of a bubble, and it’s called “housing bubble contagion.” In a paper titled Housing Bubble Contagion From City Centre To Suburbs, three Taiwan-based researchers argue bubbles spread outwards. Bubbles force investors and developers to look for “deals” outside of the city, sending prices soaring. The result is a larger bubble, with suburban prices being much more frothy. Looking at Canadian real estate data, that’s exactly what’s happening in Canada.

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Original Article Source Credits: Better Dwelling, https://betterdwelling.com/

Article Written By: NA

Original Article Posted on: 18th June 2021

Link to Original Article: https://betterdwelling.com/the-canadian-property-bubble-reaches-contagion-making-a-financial-crisis-likely



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