Canadas Housing Bubble

Nearly 20% of Homes Overvalued
Seventeen percent of Canadian homes are overvalued, CIBC warned Tuesday, with a 5 to 10 percent price correction likely to hit in the next two years.With higher interest rates likely to make housing less affordable in the coming years and the market beginning to show signs of cooling, prices are "probably" going to fall back as homeowners are increasingly cautious about how they spend their money."The most likely scenario is that higher interest rates will lead to a modest decline in prices in the coming year or two," economist Ben Tal wrote in a report.