Economic Update
David Rosenberg, Chief Economist and Strategist at Gluskin Sheff, remains a contrarian voice on the US economic recovery, and he is also sticking to his argument that Canada is in pretty good shape - and that includes the country's housing market.
That market has taken a few knocks recently, even attracting derision from the foreign press. The Wall Street Journal ran an article on Tuesday arguing that Canadian home prices are on a fresh tear, even as income growth lags record-high debt levels.
"All that has raised worry at the country's central bank, which repeatedly has warned about rising debt levels, and among some economists, who say the market is ripe for a correction - maybe a steep one," the Wall Street Journal.
But Rosenberg counters these observations. Yes, debt levels are a concern, but he notes that homebuilders have shown some discipline in cutting back production, to an extent that didn't exist in the United States at the peak of its housing market. In Canada, single-family housing starts have fallen 20% from year-ago levels.
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