Wednesday, May 25, 2011

Renovation Figures in Canada Point to Bubble

Reno figures point to bubble
Video interview on BNN interview with
David Madani
Capital Economics

Looking at the composition of residential investment. . . a substantial run-up in renovation investment . . .

Renovation was 2.8% of GDP down to 2.7% This is a long way above where we were, which was at 1.5% of GDP. We see this as a symptom of a larger bubble in Canada.

. . .

Q: would you consider what you are describing as a temporary lull . . .?

A: for a number of years the canadian housing market will be in a persistent slump.

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