Well, given the continuing pronouncements that Canada’s housing market is overvalued, I thought I would follow up my November post with another take on the data. Among the many suggestions received on that post was to extend the data back further and to look at price/rent ratios. This time, I decided to gather CMHC data on average annual MLS residential prices and average annual rents for a two-bedroom apartment for the period 1992 to 2013 to estimate price/earnings ratios for a number of major Canadian CMAs. This provides a nice two decade look at housing prices in Canada.
Ponder that over the Christmas holidays. See you in the New Year.