Another well-respected analyst has added his voice to the conversation about an unprecedented housing boom, one he argues is likely to bust – and when it does…
“It’s not unreasonable that we could see house prices fall by 30 to 50 per cent,” Vikram Mansharamani, a global equity investor and lecturer at Yale University, told MBN
sister publication, CREW
. “It will pinch the entire economy and have an impact on consumers. There is a material risk that it will spread across the country.”
Naysayers who have refuted other claims of overvaluation – most notably by the Bank of Canada and the International Monetary Fund – point out the regional nature of the Canadian economy, problems felt in Alberta, for instance, won’t reverberate to hot markets like Toronto and Vancouver.
But Mansharamani wrote on his website that, during a recent visit to Canada, he “noticed a schizophrenic oscillation between housing exuberance and oil-price despair” and concluded that “Canada is now among the most vulnerable large economies in the world.”
In the most colourful language to date, an American analyst agrees Canada’s housing market is nearly 50 per cent overvalued – and it’s not just an Alberta problem.