Canada’s housing market–off the chart!

According to the recent IMF Global Stability report Canada’s housing market is off the charts:

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Canada is the top blue line.  You wonder what will happen to Canada’s economy when the property boom ends.   Drive around Toronto, in particular the Yonge street corridor and the downtown core, and you will see scores of property factories condos developments.   At some point development will end and so will the economic boost!  This is before we factor in high consumer debt ratios and much weaker commodity prices.

From the IMF report re chart data

Sources: Organization for Economic Cooperation and Development; and IMF staff estimates.  Note: Based on unweighted average of price-to-rent ratio (PRR) and price-to-income ratio (PIR). The z-scores represent the deviation from the period average expressed in the number of standard deviations. Values above zero denote richer valuations compared with historical averages, while those below zero denote cheaper valuations. PRR and PIR are quarterly series beginning in 1970, or earliest available.

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