Canadian house prices at risk of dropping

A hot Canadian housing market has lifted prices above their long-term trend, raising risks of an eventual drop in prices, says Scotiabank. The evaluation is made in the latest Real Estate Trends report, released Thursday by Scotia Economics. "There is little doubt that current trends are unsustainable," said Adrienne Warren, senior economist for Scotia Economics. "Affordability is becoming increasingly stretched for many would be buyers after almost a decade of rising home prices.