Canadian prices are overshooting

Overseas property prices in Canada are overheating and local experts are beginning to worry about the market moving from boom to bust.

Despite the high number of foreign buyers continuing to flood into Canada's residential real estate hot-spots and average property prices posting another 5.5% year-on-year rise in October beds, forcing the Canadian Real Estate Association to up its annual sales forecast, “prices in Canada today are overshooting,” says CIBC's (the Canadian Imperial Bank of Commerce) Benjamin Tal in a new report.

He points to the large number of Chinese investors buying condominiums and houses worth more than $2 million at unprecedented rates in the more upmarket areas of Vancouver. Chinese buyers now account for approximately 20% of overall sales in the city and is the main the reason prices are so high there.

Source: OPP