Assessing House Prices in Canada

26 Pages Posted: 22 Jan 2020

See all articles by Michal Andrle

Michal Andrle

International Monetary Fund (IMF)

Miroslav Plašil

Czech National Bank (CNB)

Date Written: November 2019


This paper assesses house prices in 11 Canadian Census Metropolitan Areas (CMA) using the borrowing-capacity and the net-present-value approaches. The results indicate that by the end of 2018, house prices in most metropolitan areas are aligned with macroeconomic fundamentals. However, in Hamilton, Toronto, and Vancouver house prices have increased beyond the values implied by the fundamentals.

Keywords: Interest rates, Index numbers, Market interest rates, Financial crises, Interest rate increases, house prices, borrowing capacity, valuation, financial stability, WP, mortgage rate, house price, house affordability, loan-to-value, CMAs

JEL Classification: G1, G12, E37, E01, G21, C43, E31, D4

Suggested Citation

Andrle, Michal and Plašil, Miroslav, Assessing House Prices in Canada (November 2019). IMF Working Paper No. 19/248. Available at SSRN:

Michal Andrle (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Miroslav Plašil

Czech National Bank (CNB) ( email )

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

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