As blogged by Larry MacDonald on CanadianBusiness.com, some people say Canadian house prices are about to experience a U.S.-style crash, even though indicators like the RBC Housing Affordability Measures show overvaluation is modest (except for a few areas, like Vancouver). They claim flaws in RBC's methodology exaggerate affordability, so the measures should take second place to the price-to-income ratio and other indicators showing substantial overvaluation. I disagree with that view. Here's why.
To read more of Larry's blog, click on the link below: