Apparently Canadian homes are overvalued, according to today’s Financial Post:

A new report from one of the country’s major banks says house prices in Canada are sitting 14% over their “fair” value.

Strangely, the Municipal Property Assessment Corporation (MPAC) has nothing about this on their website. That might suggest that their assessments are incorrect, and municipalities would certainly be none too happy if assessments were actually correct, meaning that they extract as much property tax from homeowners.

My last assessment increased the value of my house by 20%, what according to this report it should be more like 6%.

Isn’t it odd that, regardless of circumstances, assessments always go up and never down?