Originally posted on Canadian Real Estate Magazine by Neil Sharma.

A report from Lowestrates.ca with an alarmist headline predicts that housing prices will “correct” sometime this year, but according to a mortgage professional in Vancouver, a fundamental misunderstanding is at play.

“It’s as simple as this: basic, unreported inflation,” Dustan Woodhouse, president of Mortgage Architects, told CREW. “There’s an ‘elite class of people’ known as nurses, school teachers, firefighters, and the police, and what they have in common is with a bit of experience, qualification, overtime, they can all make about $100,000 a year. The other thing they have in common is they marry one another and they’re in a 25% tax bracket, so you now have more dual-income households than ever before in history, and those dual-income households are in reasonably accessible jobs in our society.