Despite the Canadian housing market continuing to increase in price, many financial experts question how long the trend can sustain.

In The Globe and Mail, financial columnist Preet Banerjee debates the belief among experts that the current housing market is showing many of the same warning signs the United States market had before its major crisis.

According to Banerjee, while Canadian housing prices may eventually drop, he doesn’t foresee the same total collapse associated with the U.S. meltdown. He believes Canada is currently much more stable than the U.S. market was, citing the country’s net-worth to income ratios, conservative lending habits and lack of sub-prime mortgages.

Banerjee concludes that although prices will likely decrease eventually, expert predictions for a full collapse may be overblown.

In figures released by Statistics Canada on Wednesday, new home prices in August increased for the fifth consecutive month, jumping 0.1 percent in the month. Compared to the previous year, August prices are up 2.3 percent, the report says. While Toronto and Oshawa experienced the biggest gains, Vancouver dropped 0.4 percent.

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