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Housing bubble
Housing bubble
(Photos.com)

Why economists shrug off the housing bubble

Can economists warn us of housing bubbles – and crashes – ahead of time?

It’s a question that becomes ever more fascinating as Canada’s real estate market scales new heights. The reaction from most Canadian bank economists has been largely a shrug. Yes, activity may be overheated in certain cities, they acknowledge, and prices may have to back off a little, but there’s little reason to worry about anything serious.