What Next For Canadian Real Estate?

For the past half-century, real estate itself has amounted to an average of 5.8% of the national economy. Today it’s nicely above 7%. So what?
So, every time the 7% mark has been breached, the housing market’s taken a dive two or three years later. There is no reason to suggest this time it’s different, says finance professor and economist George Athanassakos. Expect a “severe correction.”
He even has a handy chart. Copy, paste and email it to your 25-year-old daughter about to buy her first condo with 5% down and daddy’s co-signature. This could save Christmas dinner next year:

In fact the Canadian housing market, one of the few in the western world still supported by endorphins and hormones, is gaining the attention of a few academics who think we’re, well, nuts. Like Neville Bennett, of Canterbury University in New Zealand, where they’ve had a bubble of their own. Cheap rates, lax lending standards and $85 billion in mortgages to people with dodgy credit spell disaster, he suggests:  (more)