Enough has already been written by countless others about the Canadian housing market, so I wont ramble on about how overpriced houses in Canada are. Canadians now hold a household debt-to-income ratio of 163.4% (up from 162.1% in the first quarter of 2013). Following are some charts from The Economist, comparing the historical real estate prices between Canada and US since 1975.
My wife and I are currently renting an apartment in Ottawa, Canada and are considering buying a house for the past few months. We are thinking about buying a house in a year or two (2014-2015), but the state of the market just leaves me in disbelief. The Ottawa real estate board states that the average home prices are $346K (source). The inclusion of suburbia, the remote outskirts and the rougher parts of town bring down the average prices as any good house in the city has a listing price of $500K-$800K.
The 4th chart is really interesting which shows that with the current state, its much cheaper to rent than to buy a house. But having considered all, the big question still remains: Do we wait for a correction or just buy in while the interest rates are down?
What are your thoughts?