No bubble in Canadian house prices: "Jacqueline Thorpe, Financial Post
Published: Thursday, April 06, 2006
The U.S. housing market may be rolling over but virtually all Canadian cities remain undervalued and could see annual price increases of 4.2% on average through 2010, a new study from Merrill Lynch says.
The study runs contrary to current wisdom that Canada's housing market is boiling over. For example, despite the oil boom, house prices in Calgary are 16% undervalued compared with average historical valuations. Ottawa's market is 13% undervalued, Halifax 12% and Toronto 17%. Merrill found only Victoria to be overvalued."