It's the biggest investment most of us will ever make -- buying a house. And over the past several years there's been a huge real estate boom. But it appears the boom is over and now the question is -- will we see a bust? Garth Turner is a financial commentator and Member of Parliament. His new book is called Greater Fool: The Troubled Future of Real Estate.
Take a look at the chart above, interest rates are at a much lower level than 1989 yet the affordability is plunging. The prospects for Canadian Real Estate are very poor since the demographics picture also changes over the next five years.
I would challenge any Canadian to look at the cost of owning home with a forty year amortization, you are better off renting. Price gains are decelerating, a high probability for the top in price gains in 2008.
