Economy 52,844 Posted July 30, 2016 Share Posted July 30, 2016 http://www.theglobeandmail.com/real-estate/moderate-evidence-of-problems-in-canada-and-vancouver-housing-markets-cmhc/article31131589/?service=mobile The CHMC agency is raising alarm bells that after years of a bubble getting worse and worse, home price appreciation has accelerated further rising another 14% over last year The agency is now requiring banks to do a stress test to see if they could handle a 50% price crash across Canada An average home in expensive cities such as Vancouver now cost $1.6 Million There is also concern that Mortgage and consumer debt is so high that even without interest rates rising, this debt will burry people and hurt economy. Link to post Share on other sites More sharing options...
PunkTheFunk 125,703 Posted July 30, 2016 Share Posted July 30, 2016 Slay me Canadian real estate market!! Now I'll never be able to buy a house Link to post Share on other sites More sharing options...
DiscoStyx 3,355 Posted July 30, 2016 Share Posted July 30, 2016 "May be inevitable" then it's evitable?? Sorry I'm annoying I know cause of death: gaga singing along perfect illusion on BBC Radio 1 Link to post Share on other sites More sharing options...
Mr Judas 4,106 Posted July 30, 2016 Share Posted July 30, 2016 But why tho? Link to post Share on other sites More sharing options...
Shadowcrest 2,487 Posted July 30, 2016 Share Posted July 30, 2016 1 hour ago, vrajesh said: But why tho? Link to post Share on other sites More sharing options...
Mr Judas 4,106 Posted July 30, 2016 Share Posted July 30, 2016 Just now, Themysciran said: I'm asking: why did the rates go up in the first place Link to post Share on other sites More sharing options...
Economy 52,844 Posted July 30, 2016 Author Share Posted July 30, 2016 1 hour ago, vrajesh said: I'm asking: why did the rates go up in the first place Because our banks didnt fail like in most Countries in 2008 and kept lending... And because rates dropped, the housing boom accelerated... Now its gotten so expensive that people are rushing into the market as soon as they can because they fear if prices keep surging they will never be able to afford a house which in term is forcing prices even higher The housing boom started in 2000 and accelerated after 2009... Its gotten out of control. By most measures, the bubble is bigger than the housing bubble that popped in the US in 2008 Link to post Share on other sites More sharing options...
Economy 52,844 Posted July 30, 2016 Author Share Posted July 30, 2016 3 hours ago, gaganow said: "May be inevitable" then it's evitable?? Sorry I'm annoying I know Given the perfect environment, even the biggest bubbles can deflate and correct gradually So a crash is not 100% garanteed. Its just very likely In the US at the peak of the housing boom in 2007 home prices averaged 7X incomes while in Canada they are currently 9X incomes In the US general consumer debt peaked at 134% of income. In Canada it currently stands at 166%. Link to post Share on other sites More sharing options...
Evan Peters 10,776 Posted July 30, 2016 Share Posted July 30, 2016 18 minutes ago, Economy said: Given the perfect environment, even the biggest bubbles can deflate and correct gradually So a crash is not 100% garanteed. Its just very likely In the US at the peak of the housing boom in 2007 home prices averaged 7X incomes while in Canada they are currently 9X incomes In the US general consumer debt peaked at 134% of income. In Canada it currently stands at 166%. queen of having more consumer debt than us floppy americans emma roberts is an abuser Link to post Share on other sites More sharing options...
calmar 22,768 Posted July 30, 2016 Share Posted July 30, 2016 Well if housing costs do pop a bubble and everything in the real estate market crashes, at least you can hope for a Trump presidency to send the population of the USA into Canada to start raising prices again. Link to post Share on other sites More sharing options...
Economy 52,844 Posted July 30, 2016 Author Share Posted July 30, 2016 1 hour ago, Evan Peters said: queen of having more consumer debt than us floppy americans Not a good thing to reign in Link to post Share on other sites More sharing options...
Economy 52,844 Posted July 30, 2016 Author Share Posted July 30, 2016 1 hour ago, calmar said: Well if housing costs do pop a bubble and everything in the real estate market crashes, at least you can hope for a Trump presidency to send the population of the USA into Canada to start raising prices again. Not sure that would be such a good thing If real estate pops cuz ppl cant afford these prices anymore, something keeping it up is hardly a good thing i wanna buy a house, but its too much money. $500,000 for average house in my city and im in the suburbs Link to post Share on other sites More sharing options...
calmar 22,768 Posted July 30, 2016 Share Posted July 30, 2016 Well it depends on how hard they fall. And how many Americans you can sucker into moving to like, Nunavut or something, to boost that economy while simultaneously not putting strain on Vancouver and Toronto (mainly). Link to post Share on other sites More sharing options...
Goosey 3,017 Posted July 30, 2016 Share Posted July 30, 2016 Vancouver is crazy. It's thanks to all these rich Chinese buyers. "I am the world's greatest person that does not want to let people into the country."—US President Donald J. Trump Link to post Share on other sites More sharing options...
Whispering 18,865 Posted July 31, 2016 Share Posted July 31, 2016 4 hours ago, Economy said: Not sure that would be such a good thing If real estate pops cuz ppl cant afford these prices anymore, something keeping it up is hardly a good thing i wanna buy a house, but its too much money. $500,000 for average house in my city and im in the suburbs In my area of the US, 500,000 would get you a 4000 to 5000 square foot new home in a nice area, with all the latest high end finishes, on an acre (if you wanted it). Link to post Share on other sites More sharing options...
.thumb.jpg.99c40bc2a10ded8236a48b4fe15c6be8.jpg)
Featured Posts
Archived
This topic is now archived and is closed to further replies.