Globe and Mail article about sustainability of prices in Canada. I would imagine that these figures would be heavily influenced by the frenzy in Vancouver and Toronto, but still an interesting article non the less.
Quote:
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Home prices are simply way out of line, especially when viewed in relation to household income. The ratio of house prices to income has historically averaged about 3.5 in Canada. It now stands at about 5.5. It is difficult to see how income growth in the future can bring this ratio close to the historical average within any reasonable period – so it follows that house prices will have to decline.
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http://www.theglobeandmail.com/globe...rticle1979229/