CMT – Mortgage Markets — U.S. vs. Canada
November 1, 2012 Leave a comment
Skeptics have analogized Canada’s mortgage market to the U.S market ever since the American bubble started to burst.
And in the 5-6 years since, there have been few better rational comparisons than Benjamin Tal’s report released on Monday.
Tal, a CIBC economist, admits that all is not well with Canadian housing. Yet, he adds, “…Any comparison to the American market of 2006 reflects deep misunderstanding of the credit landscapes of the pre-crash environment in the US and today’s Canadian market.”
We’ve taken his comparison of the two countries and boiled them down into digestible bullets.
To begin with, let’s start with what doesn’t insulate Canada from falling prices.