DBRS’s Loke Sees ‘Modest Correction’ in Canada Housing Market

Huston Loke, co-president of the DBRS Ltd. rating company, said he expects a “modest correction” in the Canadian housing market as price increases outstrip income gains.

The relationship between home prices and average income in some areas has “gone out of line in some of those markets,” Loke said in an interview today at Bloomberg’s Ottawa office. “There is a risk of modest correction or perhaps a pullback.”