Economist: Canadian Housing Overvalued by 35% in comparison to income.

[Roy N.]

... and by 89% in comparison to rents.

Australia and Canada share the dubious prestige of having housing prices the most out of alignment with the rest of their economies.

The Economist, "Global Housing Markets: Property Puzzles"

CBC, Canadian Housing Prices 35% Over Valued

CBC, Analysis: Overvalued Home Prices Could Put New Owners at Risk

The only good news from the perspective of the Atlantic Provinces is we've been the anchor on Canada's housing price to family income ratio for the past decade - without our representation, the Economist would be reporting an even higher percentage of over valuation.   When the froth does come off, the devaluation impact on this side of the country will be less than that on the left coast or in the middle. 

[Gary McGowan]

@Michael Chow

For the past few years I have been telling people NOT to invest in Brampton due to the second suite confusion. Town Council members didn't even know what was going on. Legalization of second suites is a HUGE step for the city of Brampton. I still need to wrap my head around all the requirements behind it. I have always said when City's legalize second suites this is a Great thing. Newmarket has had second suite registry for many many years. When you have a property that is legal is valued 5-8% higher and will always sell quicker. 

I have owned single family homes in Brampton and have done well there. Appreciation was nice and the rents were avg. There is a lot happening in the city with growth. New hospital, homes, stores, infrastructure and as you pointed out transportation. 

Investors that take the time to understand the Second Suite Requirements  should do really well with a long term strategy. You will have some buyers today that will jump ship. So there could be an opportunity.