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How to deflate a housing bubble, from Vancouver to Toronto

from Globe and Mail

In Canada’s frothiest housing market, prices are finally falling. Hip, hip, hooray. Falling real estate prices are normally a negative economic indicator, but it’s been years since Vancouver had a normal housing market. Canada’s third-largest metropolitan area inflated into a bubble thanks to home prices that consistently rose much faster than local salaries. Real estate became disconnected from the real economy. more


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