Quote:
Originally Posted by opendoor
Honestly, those stats had the opposite effect for me. The fact that property prices in Canada only need to drop 9% to match the OECD average for Price-to-Income is kind of suprising. I thought we were way further out of whack from comparable countries.
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Thats a terrible tweet. For one thing, that chart was originally displayed by Rosenberg in a Financial Post article back in 2021, so the data is out of date.
Secondly, the data isn't absolute levels. While it isn't totally clear I think each country is normalized to its own 2015 level for the same factor. So it isn't saying that Canada's price to income is 9% higher than the global average, it's saying that Canada's price to income increased by 9% more than the global average from 2015 to 2021. Not a terribly useful statistic, imo.
Link to original article below.
https://www.google.com/amp/s/financi...d6ac9d2d1/amp/