Patrick.net

Massive Canadian Housing Bubble?

By lostand confused   Follow   Wed, 5 Sep 2012, 5:53pm   1,443 views   8 comments
Watch (1)   Share   Quote   Permalink   Like   Dislike  

Read this over at Dr. Housing Bubble. Seemed interesting.

http://www.doctorhousingbubble.com/canadian-housing-bubble-full-mania-canada-household-debt-surpasses-us-household-debt-canada-real-estate/

Viewing Comments 1-8 of 8     Last »     See most liked comments

1. thomaswong.1986 Follow Befriend 15 threads 2,845 comments

   1   8:31pm Wed 5 Sep 2012   Share   Quote   Permalink   Like   Dislike   Must be the Banks and the Fat Cats on the Toronto Stock Exchange. No wait.. they do have regulations, no mortgage deduction and no Prop 13. Could it be just another example of irrational exuberance among the public ?

2. TOLurker Follow Befriend 3 threads 45 comments

   2   5:53am Thu 6 Sep 2012   Share   Quote   Permalink   Like   Dislike   TO Lurker back again.... I'm living the bubble here in lofty Toronto, land of the 1000's of condo towers (and at least 100+ under construction now!) Been reading patrick.net since 2002 or 2003 (when did I find you Patrick?) and it was expensive but no where the craziness reported from Bay Area, Las Vegas, Florida, etc... Now Vancouver has topped (sales down 30% to 40%, prices down 10%-15%) and Toronto could be, may be, rolling over. A former politician (too honest and straight talking to stay in politics) has a blog where he is trying to work out the horniness out of the house-horny www.greaterfool.ca Meanwhile, I'm having the problem all you folks did in 2002-2007. We were lucky to have bought a house (not condo) in 2005, bought conservatively with a huge down payment and a mortgage below our limit. No bidding war, but it felt like we were competing with other fools who overextended. Guess we were the fools because whaddya know, it kept going up over here for 7 years! Now it's too expensive to upgrade from our starter home (another $200K-$300K?) the cost for an addition is enormous (easily $200 / SF) since all contractors are busy. Private sales however are finally blooming since the Realtor (R) lockhold over MLS has been broken -- thank you Competition Bureau Commissioner, Melanie Aitken!) For logistical reasons, we plan to relocate within the city anyway, but will probably rent for a year while we find something to buy. Or maybe not buy. Even rents have gone up for single family home on the subway lines -- I used to see $2,000, $2,500 now it's easily $3,000, $3,500, $4,000 for a 3 bedroom 2 bath in reasonable condition in the same 'hoods. Nuts.

3. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   3   9:04am Fri 7 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   Seems like they have not learned from EU crisis. No growth means,so much you can push ahead. Go ask Spain.

4. CalX Follow Befriend 3 comments

   4   8:41pm Fri 7 Sep 2012   Share   Quote   Permalink   Like   Dislike   The Canadian market is fairly disparate, you have Vancouver, which is terribly overpriced but it's a smaller market that is somehow buoyed by the influx of Asian capital. Toronto, which is also expensive but also gets a premium from being the business center of the country and having a steady and large influx of immigrants (who tend to be more highly-educated and upwardly mobile than what you have in say LA or Houston). Beyond those, there isn't much of a bubble. In Montreal for example the median home price is still under $300k. Relative to the US, there are some stabilizers, like the prominance of the public sector, which is less subject to business cycles, the stability and strength of the banking sector and the more conservative real estate culture (tighter lending policies, vanilla mortgages, high % of owner-occupied properties -Van notwithstanding-) Vs the US, the one issue where the marketis more vulnerable is that most mortgages are variable (1 to 5yr terms), so there is a lot more exposure to a shar rise in interest rates. However, such a rise is less likely to occur given that the canadian $ has been and will continue to be too strong due to the resource-driven nature of the economy.

5. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 171 threads 4,211 comments Premium

   5   4:27am Sat 8 Sep 2012   Share   Quote   Permalink   Like   Dislike   CANNIBAL ANARCHY is coming to Canada, eh?

6. ELC Follow Befriend (3) 3 threads 657 comments Fort Lauderdale, FL

   6   5:04am Sat 8 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   CalX says having a steady and large influx of immigrants (who tend to be more highly-educated and upwardly mobile than what you have in say LA or Houston). Beyond those, there isn't much of a bubble. Deja eh!

7. lostand confused Follow Befriend (9) 165 threads 1,548 comments Premium

   7   5:19am Sat 8 Sep 2012   Share   Quote   Permalink   Like   Dislike   ELC says CalX says having a steady and large influx of immigrants (who tend to be more highly-educated and upwardly mobile than what you have in say LA or Houston). Beyond those, there isn't much of a bubble. Deja eh! LOL! Sounds so much like the reasons that were bandied about during our own bubble.

8. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   8   2:21pm Sat 8 Sep 2012   Share   Quote   Permalink   Like   Dislike   APOCALYPSEFUCK is Shostakovich says CANNIBAL ANARCHY is coming to Canada, eh? LOL. I thought it had already descended in Canada. What's those stories about human body parts found?