CBC 29 June 2011[hat-tip ams] -
“Canada’s housing market is in a bubble that’s set to burst and prices could plunge by as much as 25 per cent, a major independent research firm warns.
“Housing valuations have lost all touch with fundamentals and household debt is at a record high,” economists at the research consultancy Capital Economics say in their most recent Canada Economic Outlook, issued Wednesday.
“Our fear is that, with the housing bubble now close to bursting and commodity prices retreating, Canada will go from leader to laggard.”
The report predicts a fall in house prices by as much as 25 per cent over the next three years.”
Many readers will already be familiar with the predictions from ‘Capital Economics’: their economist David Madani made the 25%-drop prediction in a recent interview with Rob Carrick from the Globe and Mail.
We record the fact of the CBC story here, for the record, as it is noteworthy that they run a headline featuring the words ‘housing bubble’ and ‘bursting’. All part of the apparent steady increase in bubble-talk in MSM. – vreaa
UPDATE: This story was also run in the Vancouver Sun 29 Jun 2011, a similarly noteworthy occurrence. Interestingly, it isn’t featured on the online front page, or in the ‘Business’ headlines, but it was found second on the ‘most read’ sidebar.