Home Values - Will they go up or down?

Some interesting facts
The national average home price in December was $344,551 — up two per cent from December 2009. The Canadian Press 01/14/2011

Many experts are advising that Canadian home prices are overvalued by 14%. “the average price of a home has risen by almost 23 per cent since the cyclical low of January 2009, and about 7 per cent above recession levels. As a result, at least 1.5 million homes across Canada are overvalued, particularly in western Canada, and a price drop of 5 to 10 per cent over the next 12 months would not be unlikely”, said Benjamin Tal of CIBC.

In case you have forgotten the depth and velocity of the previous market reversal when Canadian real estate prices plunged in 2007-08; householder equity vanished as follows: (SFD single family dwelling)
• Average Vancouver -SFD lost $122,900, or 15.9% in 8 months
• Average Calgary -SFD lost $92,499, or 18.3% in 18 months
• Average Edmonton -SFD lost $78,719, or 18.5% in 21 months
• Average Toronto -SFD lost $55,055, or 13.8% in 9 months
• Average Ottawa -Residence lost $25,664, or 8.6% in 6 months
• Median Montreal -SFD lost $6,000, down 2.6% in 6 months
• http://www.chpc.biz/

Extracted from an email by April Morin