Dive Brief:
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Homes in Canada are so much more expensive than those in the U.S. that the northern neighbor is concerned its housing economy could be at risk for a “sharp correction,” an official told Bloomberg.
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The average price of a home in Canada at the end of last year was $354,000 (in U.S. dollars), compared with the U.S. average of $250,000, according to Canada Mortgage & Housing Corp.
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The numbers have Canadian officials analyzing the reasons for the price differential, which is most pronounced in urban markets like Toronto and Vancouver.
Dive Insight:
Since the 2007-2008 housing slump, Canada’s prices have risen quicker and higher than those in the U.S., a difference that officials call “the Canadian premium” and have said they can’t explain.
Officials are examining whether Canadian homes are overvalued, in an effort to determine whether a housing bubble, followed by a correction like the one the U.S. experienced, are on the horizon.