Toronto, Aug. 31 – While recent swings in Canadian house prices have raised concerns about the possibility of a U.S.-style housing bust in Canada, the risk of that happening is low, according to a study released today by the C.D. Howe Institute. In “Not Here? Housing Market Policy and the Risk of a Housing Bust,” author Jim MacGee evaluates the likelihood of a US-style housing market crash in Canada by examining what caused the US housing boom and bust from 2000 to 2010 and comparing housing market policies in the two countries.
