It’s the doctor versus the governor in the ongoing debate over the direction of Canada’s housing market.
On the pessimistic side there’s Nouriel Roubini, the man known as “Dr. Doom” for his pessimistic outlook on the global economy. He recently pinpointed Canada’s housing market as a bubble set to pop.
Canada is in the company of other housing markets that Roubini (known as one of the few to correctly predict the U.S. housing crash) says are showing “signs of frothiness, if not outright bubbles,” including Switzerland, Sweden, Germany, Australia and New Zealand.
More optimistic is Bank of Canada governor Stephen Poloz, who reiterated again last week that he doesn’t see a bubble. Instead, he believes there will be a gradual slowing of sales activity in the years to come.
“The bank continues to expect a soft landing in the housing market,” he said, repeating calls economists have been making for the past several months.
So far, predictions on both sides are proving to be incorrect as Canada’Read More »from ‘Dr. Doom’ warns Canada’s housing bubble about to burst