ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.
The housing bears have been largely in hibernation since second quarter residential sales numbers from the Canadian Real Estate Association rebounded sharply after five straight quarters of decline. But a report from Richmond Hill corporate bond manager Canso Investment Counsel has stirred the discussion back up. While most of Canso’s report contains things we already know, as well as a healthy dose of fiery rhetoric, one point demands attention due to its similarity to analysis of the U.S. crisis: inflated mortgage appraisals artificially drive up prices, a dynamic that becomes dangerously unsustainable.Report Typo/Error