Stephen Jarislowsky, one of Canada’s best known investors, believes that the government’s recent talk of possible tighter restrictions on mortgage regulations has put the housing sector in a bubble – exactly what they were trying to avoid.
Mr. Jarislowsky told Bloomberg News that “I am convinced there is a housing bubble in Canada….prices in Canada are far more expensive than they should be. They (the government) have basically encouraged people to buy houses based on cheap mortgages.”
There was a study recently released outlining the seriously most unaffordable housing markets out of Canada, the US, the UK, Australia and elsewhere. Vancouver, BC came out #1 – as the least seriously unaffordable housing market in the world! Victoria, Kelowna, Abbotsford and Toronto were also in the 58 markets, so Mr. Jarislowsky could be right about a few markets at least…
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