The long-coming and oft-denied Canadian real estate meltdown just got one step closer to reality, with a stern---but still too little, too late---warning from the chief economist of TD bank.

We need to acknowledge that a significant imbalance has developed and it poses a clear and present danger to Canadas medium-term economic outlook. It also suggests that further actions to constrain lending growth may be prudent, he said. If the overvaluation was fully unwound rapidly, it would be three times the correction in the early 1990s.

Meanwhile 418 units in a Vancouver pre-sale sold out in a breathless four hour scramble.

"Our analysis depicts a coming generational transition in the housing market that will upset the historic balance of buyers and sellers. Residents in most states are net buyers of homes well into their 50s. The resulting upward pressure on demand by the large baby boom generation will soon peak, and after age 70 they will be net sellers in all except three states."

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