Assessing House Prices in Canada

November 15, 2019

Preview Citation

Format: Chicago

Michal Andrle, and Miroslav Plašil. Assessing House Prices in Canada, (USA: International Monetary Fund, 2019) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper assesses house prices in 11 Canadian Census Metropolitan Areas (CMA) using the borrowing-capacity and the net-present-value approaches. The results indicate that by the end of 2018, house prices in most metropolitan areas are aligned with macroeconomic fundamentals. However, in Hamilton, Toronto, and Vancouver house prices have increased beyond the values implied by the fundamentals.

Subject: Financial institutions, Housing, Housing prices, Inflation, Mortgages, National accounts, Personal income, Prices

Keywords: Borrowing capacity, Condominium price, Cost of equity, Financial stability, Horizon mortgage rate, House price assessment, House prices, Household income, Housing, Housing prices, Income, Income growth, Inflation, Interest rate, Interest rate decline, Mortgage interest rate, Mortgage rate, Mortgage rate dynamics, Mortgage rates decline, Mortgages, Net rental income, Personal income, Price, Price correction, Valuation, WP

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/248
Stock No:

WPIEA2019248
ISBN:

9781513519180
ISSN:

1018-5941

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