Canada’s market more exposed than pre-crisis America?

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Hilliard MacBeth, portfolio manager and author of a recently released book about a Canadian real estate bubble, believes Canada’s market is more at risk than America’s market before 2008.
"Our bubble is bigger," Hilliard MacBeth, portfolio manager with Richardson GMP and author of When the Bubble Bursts: Surviving the Canadian Real Estate Crash, told the CBC.
"At seven per cent, our exposure as a percentage of total economic activity is higher, and then we've got this nationwide obsession with buying homes and condos."
According to MacBeth, U.S. investment in housing prior to its crash was six per cent of the total GDP.
Record-low interest rates are drawing Canadians to the market and driving up prices. But MacBeth is advising Canadians to hold off on purchasing for now.
"If they haven't bought yet, their best strategy is to save up more for a down payment, and wait for the housing bubble to burst," he said.
It’s an opinion that won’t sit well with the real estate industry.
MacBeth recently predicted a 40-50 per cent price correction for homes across Canada – a claim that was quickly refuted by industry professionals.