Assessing House Prices in Canada

Michal Andrle and Miroslav Plašil

No 2019/248, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; interest rate; price; mortgage rate; income; house prices; borrowing capacity; valuation; financial stability; household income; mortgage interest rate; condominium price; interest rate decline; mortgage rate dynamics; cost of equity; income growth; mortgage rates decline; house price assessment; horizon mortgage rate; net rental income; price correction; Housing prices; Mortgages; Personal income; Housing; Inflation (search for similar items in EconPapers)
Pages: 25
Date: 2019-11-15
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (1)

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