"The bank said Canadian house prices have been overvalued by at least 10 per cent since 2007 and may now have overshot by anywhere from 10 to 30 per cent, relative to incomes and interest rates."
"That doesn't come as a shock to house hunters in cities such as Toronto and Vancouver, where still-rising values have pushed the average price of detached homes toward the $1-million mark."
"In its report, the bank expressed particular concern that high prices are pushing many Canadians to take on too much debt."
"Forty per cent of all household debt in the country is now held by borrowers who have a total debt-to-income ratio of more 250 per cent. The Canadian average is 164 per cent, a record high. These heavily indebted households now make up 12 per cent of all borrowers, double their share in 2000."
"The bank’s report also pointed to a growing appetite in Canada for subprime and uninsured mortgages, as well as risky auto loans."
From http://ow.ly/FGxB1 :
Housing market overvalued by as much as 30%, BoC says
The central bank said Canadian house prices have been overvalued by at least 10 per cent since 2007 and may now have overshot by anywhere from 10 to 30 per cent