Wary of the housing bubble burst that set the United States into an economic tailspin, the Canadian federal government has been extraordinarily cautious with its housing market in the past several years. As a result, the Canadian bubble hasn’t burst… yet. Future homeowners might want to avoid some of the following housing markets for reasons like falling values, inventory gluts, and overvaluation.
11. Montreal, Quebec
Recent hikes in the cost of mortgage insurance mean buying a house in Montreal is a little more expensive these days. The market has also seen way too many condos built in the past few years, and economists worry that demand won’t be enough to keep the market from sagging with vacant housing. New housing starts expected in 2014 are likely to remain flat versus where they were in 2013, so confidence in the Montreal market is eroding.