“I’m surprised that everyone else is so surprised to hear anyone talk about a housing bubble…”
“Housing prices went up 17% in a year where underlying wage growth is stagnant…”
“I called the bubble in the US in 2005-2006… I was looking at price to rent ratios, I was looking at price to rent ratios… household exposure to RE… I’ve got news for you… the numbers in Canada now are worse than they were in the US 13 years ago”
[asked about colleagues who say there is a “bubble in calling bubbles in Canadian RE”] “Bubbles can go further than you think, but they don’t correct by going sideways…”
“I listen to… Stephen Poloz [BOC governor]… it’s like listening to Ben Bernanke in 2006 when he told everybody “Oh, don’t worry… house prices nationwide never go down“..
“Bubbles can last a long time, but we’re in a very unstable situation”.
excerpts from economist David Rosenberg’s Bloomberg interview, 24 March 2021