Are home prices peaking?

This article from the November 2007 issue of MoneySense Magazine looks at prices across Canada and asks the question Are home prices peaking?

Even banks are admitting that after a decade of unthrottled expansion, Canada’s real estate boom may finally be losing steam.

The average price of a home in Canada recently topped $310,000, a gain of 60% in real terms in just nine years. Canadians haven’t witnessed a boom like this since just after World War II—and it’s clearly not sustainable. If prices continued to rise at their current rate, the average house would fetch $10 million by 2037. Since that doesn’t seem plausible, the big question is not whether the current boom will stop, but when.