Canada's Housing Bubble

Apr 08, 2010 Karl Denninger market-ticker

The Canucks are nuts:

Are you're going to tell me that:

• The average Canadian household income is $121,000?
• The average income in Vancouver is $329,000?
• The average income in Toronto is $187,000?
• The average income in Montreal is $118,000?

In a word, bullshit.

The latest median household income I can find for Canada is closer to $53,000 - or about half of what it should be.  That is, homes in Canada - on the whole - are selling for double reasonable "fair values."

I'm willing to bet that in Vancouver they're overvalued by a factor of five - or more.

I can't tell you when it will blow up, but I can tell you with absolute certainty that it will.

If you have a nice big fat profit in your house up there in Canuckistan, you better sell now while you still have it.

Ignore this warning at your own peril.