Which parts of Canada's housing markets are in a bubble

Rapidly rising prices in a number of Canada’s housing markets, especially the Greater Toronto Area (GTA) and Greater Vancouver, have caused a number of market watchers to call it a bubble.

A bubble typically occurs when asset prices surge based on irrational behaviour instead of intrinsic value or fundamentals.

Prices are up as much as 35 per cent or more in some suburban and even rural neighbourhoods.

We’ve been getting monthly updates from the ground floor from Realosophy Realty’s John Pasalis and Oakwyn Realty’s Steve Saretsky, who help make sense of it all, with advice for anyone buying or selling a home.

They both think the term is something of a blanket statement. They some parts of the market are in bubble territory, while others aren’t there yet.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

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