The OECD about Canada
By Elli Davis, September 17, 2010
Photo by Morgan
The very well known and respected Organization for Economic Cooperation and Development has, on Monday, released its Economic Survey analysis evaluating and offering advice to Canada's economy. Housing in the country is way too overpriced, the report states. Record-high housing costs, together with household indebtedness are quite risky for the economic outlook, according to the organization.
House prices in general, but especially in Toronto and Vancouver may still reflect excess demand conditions, the OECD states. Both price to rent and price to income measures clearly indicate how overpriced housing really is. The organization, however, did have some positive comments about Canada's housing market, claiming that it was “the rebound in the housing market that has been key to Canada's recovery from the recession.”
As the latest news show, prices have been the only component rising in the housing, so this evaluation is not that big of a surprise. Something should certainly be done about rising property prices. Generally in economy, the OECD suggests fiscal tightening to begin in 2011, especially in Ontario and Quebec.