Although beginning to slow, housing prices in Canada have risen tremendously over the last seven years relative to income. This is an example of a:

Question

Quizplus · Accepted Answer

A bubble occurs when the prices of assets, such as housing, increase rapidly and to levels that are not supported by fundamentals, such as income. The description fits the characteristics of a bubble, where housing prices have risen significantly over a period, outpacing income growth.

Although Beginning to Slow, Housing Prices in Canada Have Risen