But what would a British magazine know about the Canadian real estate market? Does it even have a right to call it a bubble?
Well, in a way The Economist has more credibility than Flaherty, Poloz or your local real estate agent.
Let me explain why.
As early as 2002 The Economist pinpointed housing bubbles in the Netherlands, Ireland, Spain, United States and Britain.
In 2005 The Economist called the worldwide rise in house prices the "biggest bubble in history". Back then American real estate prices were overvalued against rents by 35%.
Now compare that to Canada's ratio of prices to rents which currently stands at 74% above the long term average...
We are doomed!