“The Bank of Montreal poured cold water on the idea Canada’s housing market could be headed for a crash” … “Expect the housing boom to cool rather than crash”…”While the housing boom is unlikely to continue unless mortgage rates drop much further, neither is it likely to bust.” … “In our view, the national housing market is more like a balloon than a bubble… While bubbles always burst, a balloon often deflates slowly in the absence of a pin.”
- BMO’s chief economist Sherry Cooper and senior economist Sal Guatieri, ‘No housing crash coming in Canada, BMO says’, CBC, 30 Jan 2012
“We’ve always said the market remains vulnerable to a correction in the face of a shock. It could also “pop” in the absence of a shock should current frothy trends persist.”
- Dr Sherry Cooper, Chief Economist, BMO Capital Markets 6 Mar 2012, on Toronto’s RE market
[hat-tip to Zerodown]
1. Something has changed in the last 35 days?