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Presenting The Most Overvalued Housing Market In The World In One Chart
Submitted by Jeff Desjardins of Visual Capitalist
Canada has the Most Overvalued Housing Market in World
In every inflating bubble, there’s usually two camps. The first group points out various metrics suggesting something is inherently unsustainable, while the second reiterates that this time, it is different.
After all, if everyone always agreed on these things, then no one would do the buying to perpetuate the bubble’s expansion. The Canadian housing bubble has been no exception to this, and the war of words is starting to heat up.
On one side of the ring, we have The Economist, that came out last week saying Canada has the most overvalued housing market in the world. After crunching the data in housing markets in 26 nations, The Economist has determined that Canada’s property market is the most overvalued in terms of rent prices (+89%), and the third most overvalued in terms of incomes (+35%). They have mentioned in the past that the market has looked bubbly for some time, but finally Canada is officially at the top of their list.
Of course, The Economist is not the only fighter on this side of the ring.
Just over a month ago, the IMF sounded a fresh alarm on Canada’s housing market by saying that household debt is well above that of other countries. Meanwhile, seven in ten mortgage lenders in Canada have expressed “concerns” that the real estate sector is in a bubble that could burst at any time. Deutsch Bank estimates the market is 67% overvalued and readily offers seven reasons why Canada is in trouble. Even hedge funds are starting to find ways to short the market in anticipation of an upcoming collapse. Canada’s housing situation could give rise to the world’s next Steve Eisman, Eugene Xu, or Greg Lippmann.
On the opposing side of the ring, who will contend that the Canadian housing market is just different this time? Hint: look to the banks and government.
Stephen Harper, Canada’s Prime Minister, has tried to dispel fears. He recently told a business audience in New York that he didn’t anticipate any housing crisis in Canada.
Just this week, the Bank of Canada also tried its best to deflate housing bubble fears. “We don’t believe we’re in a bubble,” says Stephen Poloz, the Bank’s Governor. “Our housing construction has stayed very much in line with our estimates of demographic demand.”
Poloz suggested that housing costs do not necessarily have to contract to match the incomes of Canadians. Instead, he expects growth in the economy to raise wages and make housing more affordable.
Strangely enough, by the Bank of Canada’s own estimate, the housing market is overvalued by as much as 30%. It is hard for housing to become more affordable when prices are rising in double digits in a year. Combine this with the fact that household debt rates keep setting new records, and one side of the fight might get tilted sooner than later.
Courtesy of: Visual Capitalist
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This times is different cuz growth.
Makes sense to me. Canada is a small country with a huge population, it's all about supply and demand.
And supply is just going to get tighter as now everyone wants to buy a vacation home for their pet bear.
For crying out loud..
Give Carney a chance to out-do himself..
He’s only been in the U.K. a couple years or so.
...With W W #3 on the horizon, what country is it safest to live?
Australia and New zealand ranks way higher.
No ozone for a long while after a nuclear war. It'll gather at the north pole first.
Huge population? Canada = California population wise.
CA is actually more population than Canada by about 10%
Canada vs California
Canada = Full Recourse
California = No Recourse
http://www.investopedia.com/terms/f/full-recourse.asp
Canadians are FOOKED. But they have a balanced budget right?
RIPS
Australia is worse than Canada. You can't even touch a house on land without a cool million. Everything else is essentially living on top of your neighbor, or living so far outback that you can't get electricity or running water without paying the same costs as buying the million dollar hovel.
I'd still rather pay stupid expensive housing prices at a 4% fixed rate than have that kind of cash in the bank. Then again, if you're a boomer then when you are retiring and wanting to downsize, so is the largest demographic age bracket in the history of the world. How do you spell over supply again? Oh yes, "n-o b-i-d-s"
If you're a boomer, sell your house now and downsize sooner rather than later with cash.
I know how yuz guys are.
Don't ya'll go criticizing beaver.
if Vancouver goes down 20%, it won't be a crash, it'll be a fire sale
there's a lot of Chinese liquidity just sitting on the sidelines ready to buy up Syndey, Arcadia, and Vancouver 'deals'
if the Canadian government let's the housing 'bubble' pop... it won't correct anything... it'll just replace domestic sellers with foreign owners, and in a year prices will be even higher again
What do you expect from Mark Carney & Royal Pedobears @ Large ???
Where does Switzerland stand?
What difference does it make?
Standard Disclaimer: Sorry, it had to be said...
it is called sarcasm..
he wasn't being sarcastic, he was being ironic
No, everyone gets that wrong.
Irony is when you take out a car title loan to pimp your ride,
and it gets repossessed;)
funny that
I'm pretty certain your sarcasm detector is either broken or needs recalibration.
Right... and unlike California, Canada is a country that's 6000 miles long and 100 miles wide. The logistics are a nightmare for most businesses. Why do people think 90% of the population lives within a 2 hour drive of the US border?
As we speak, Californians left and right, progressive and conservative, are signing petitions for a vote on California Sovereignty! As is pointed out, California is a nation in all ways and it's time to recognize it.
www.sovereignca.org
Gov. Jerry Brown recently said, in relation to trade ties with China. "Well, California is a nation-state, and with so little going on in Washington, it gives us space to do things here in California."
It's a pretty Big Bubble, eh.
My first thought was "Good riddance"...
>it gives us space to do things here in California <=> Stupidity is not the way to do things.
But after collecting my thoughts, I'm hoping for a second civil war... There are a number of pricks in CA that deserve to catch a bullet.
Hair dye botox face "we have to pass it to find out what's in it." puhlosi 1st plz
Whoa. You really did go there. (and you're right)
"I can't breathe!"
My first thought was "really? Awesome....wait, this is a joke...is it?...I guess it's not...cool".
But wait, why do you want people to die there?
Hey guys, this sovereign California group is pretty fishy. I just did a whois lookup at network solutions on the domain name and nothing came back for that web site. That is the first time that I have seen nothing come back to show the domain name registration for a website at all. I mean there was no text of any kind that came back up at all. If you do not believe me, then look it up for your self.
Registrant ID:CR166868691
Registrant Name:Louis Marinelli
Registrant Organization:Sovereign California
Registrant Street: P.O. Box 121165
Registrant City:San Diego
Registrant State/Province:California
Registrant Postal Code:92112-1165
Registrant Country:US
Registrant Phone:+1.6199853585
Registrant Phone Ext:
Registrant Fax:
Registrant Fax Ext:
Registrant Email:
That high speed rail to nowhere is going to keep them going. Funny how the bids went to people connected to government, too.
Can you say "cost overruns"?
You can thank the banksters again.... (I.e. Mark Carney)
http://www.spectator.co.uk/features/8915931/why-mark-carneys-canadian-su...
Tied with Sweden, I might add.
Obviously not keeping much of an eye on the Australian market...
http://news.domain.com.au/domain/real-estate-news/auction-reserves-smash...
Auction reserves smashed left, right and centre on a day with nearly 1000 auctions
5 Carool Road, Carnegie sold for $1.52 million.
5 Carool Road, Carnegie
Sold $1.52 million Agent Woodards Price range $900,000-$990,000
This three-bedroom knockdown, with permits for two townhouses, sold for $520,000 over its reserve price. The vendors bought the property, on 766 square metres, for $850,000 in 2013. The opening bid of $1 million met the vendors' reserve and three bidders quickly propelled the price over $1.2 million, when it was called on the market. The fourth bidder jumped into the ring at $1,305,000, but declared he was out $10,000 before the final bid. The winning buyers were two friends who teamed up to buy the property so they could build neighbouring townhouses. Christina Zhou?
67 St Vincent Place, Albert Park Photo: Supplied
67 St Vincent Place, Albert Park
Sold $4.21 million Agent Greg Hocking Price range About $3 million
"The worst house in Melbourne's best street" sold for $1.71 million over reserve. St Vincent's Place is Albert Park's most prestigious address and number 67 offered the last unrenovated house in the street. A home buyer braved a 40-minute auction in front of 300 people to pay $4.21 million for the three-bedroom Victorian. The price works out to $14,000 per square metre. Auctioneer Warwick Gardiner said he had recently valued nearby fully renovated properties at $10,000 a square metre. Alistair Walsh
I think I saw a real estate agent named Christina Zhou here in Toronto recently.
Dang! She gets around doesn't she?
Chinese are still flooding into Australia like crazy. A condo building in Darling Harbor my Dad looked at back in 2000 is now 15X higher in proice and the occupabcy is nearly 100% Mainlanders. The 1 bedroom he wanted back then is way beyond his affordability now.
Where do the Chinese Mainlanders get $1.8 million cashola?
How did this happen in a ~10 year period? Where'd da money come from?
It is printed and handed to insiders and those that work financialization to the max.
The Fed!
Its funded by 25 years of North Americans buying garbage at Walmart.
Look around you, is there anything in your house that wasn't made in China? Where do you think they got the money? They squeezed it out of the peasants who made your stuff.
Chinese are putting it anywhere they can even if they know it's overvalued because it looks way better than this market:
https://homes.yahoo.com/photos/china-s-ghost-cities-a-fever-of-destruction-construction-and-abandonment-1430518770-slideshow/photos-a-fever-of-destruction-construction-and-abandoment-in-china-photo-1430505970387.html
The Victorian State Government (Melbourne is it's capital) is FINALLY coming to it's senses and looking to at least make some money out of all the Chinese that are buying up houses and apartments.
http://news.domain.com.au/domain/real-estate-news/new-property-taxes-a-king-hit-to-the-real-estate-industry-20150502-1mydop.html
Non-residents buying property will be slugged the equivalent of 3 per cent of the purchase price. The surcharge will apply from July 1. Also, an absentee land tax of 0.5 per cent will be applied from 2016 to foreigners who do not occupy the new or existing dwelling they have purchased, which Treasurer Tim Pallas said would deter so-called land banking.
AdvertisementThe reaction came as the Abbott (Federal) government on Saturday announced a crackdown on foreign investors who have illegally bought Australian real estate.
Investors will have until November 30 to come clean and sell their properties or face potential prosecution. Australia's investment regime generally does not allow foreign investors to purchase existing homes. For people who break the rules, penalties will be tougher under the crackdown, including possible jail terms.
Under legislation to be introduced this year, penalties will be increased to $127,500 or three years' jail for individuals, and $637,500 for companies. The government wants the new regime in place by December 1.
However, Treasurer Joe Hockey has announced a moratorium to encourage people who have made unlawful purchases to turn themselves in.
"Those foreign investors have until November 30 to come forward and self identify," he said on Saturday. "They will be forced to sell their properties, but they will not be subject to criminal prosecution."
The Chinese have been buying up property illegally for some 10 years now.
The FIRB (Forgeign Investment Review Board) has been a joke.
The Australian FIRE sector (Finance, Insurance, Real Estate) is one of the few sectors that has been gorwing.
I have never met a bunch of soft girly boy's as Australians , they never stand up for themselves and they always do what they are told. Australia used to be a tough country now whatever.
In Europe only Danemark is "cheaper" than Canada.
http://www.numbeo.com/property-investment/rankings_by_country.jsp
Real estate in the US is actually one of the cheapest in the world (when considering the ratio price/income or price/rent.
In Europe only Danemark is "cheaper" than Canada.
http://www.numbeo.com/property-investment/rankings_by_country.jsp
Real estate in the US is actually one of the cheapest in the world (when considering the ratio price/income or price/rent.
Don't think so. We have a government that obediently follows America into wars. We would be a target. Pine Gap would be first on the list.
Sure as hell not Australia, the Chinese will be working their way down here. The Japs made to Sydney in the 40's.
You got it backwards, Canada is a HUGE country with a small population. There, fixed it for yah eh. I've told my kids to rent until, not if, things implode. Like Greece, it is inevitable. Politicians and central bankers are morons. I predict that he Looney will fall to 50cents.
Candians short on sarc snark sense?
Oar does it need to be made Official?
I'm sorry... but did you purchase your sarc license yet?
He first wants to try out for the TSA.
Canada is a large country with a small population (density is 9 per square mile) versus, for example, UK with 650 per sq.mile and USA with 83 per sq.mike.
Looks like a few missed the /sarc...
I always love it when bitchez get taken for a ride by MDB or the likes of kml813.
Funny dudes. Shout out to mcmolotov as well.
The house 2 doors down from our old one just sold in a community 30 miles from Vancouver. 300 people through the open house in 2 days, listed for 595K, sold 107K over listing on sunday with 14 back up offers. All this for a 1300 ft' that was built in 1969, bubble?
was the listing in Chinese?
Hongcouver.
I prefer Van Kong.
And in other news.
http://www.vancouversun.com/business/affordability/Vancouver+real+estate+prices+deemed+risk+correction+CMHC/11017371/story.html
The article assumes Canadian borders will remian wide open for wealthy foreigners, I suppose.
I love the eternally optimistic attitude of real estate people. There are only two situations for real estate forecasts.
1. Real estate is going up (forever)!
2. Real estate is just about to go up!
Offshore fiat has been driving up the Vancouver/Hongcouver and Toronto markets for years.
Rich guys from the ME and India buy in Toronto, and rich guys from Hong Kong and China buy in Vancouver. Some of them also have homes in London, NY and SF. You could say they are rich peppers, with bug out locations in several countries.
Yes, and also this kind of thing happens. Not sure why it' only started making news recently:
http://globalnews.ca/news/1955669/vancouver-property-exclusively-markete...
'Chinese Laundry' operation.
It's the US visa workaround.... Canada has lenient citizenship requirements . Once granted, Canadians have the shortest of wait for US green card
Ha!
I spit on your sale! Canadia has nothing on the current real estate boom/madness/bubble/different this time mania that's currently pervaded the Australia RE market.
This place sold yesterday @ auction just around the corner from my house.
Vendor Reserve was $800k. Sold $164k above @ $964,000
http://www.realestate.com.au/property-house-vic-preston-119498999
These have been a few of the sales in the surrounding area in the last 12 months.
http://www.realestate.com.au/property-house-vic-preston-119376475
$1,760,000
http://www.domain.com.au/property/sold/house/vic/preston/?adid=2011740866
$870,000 - private
http://www.realestate.com.au/property-house-vic-preston-119124083
$825,000 - auction
http://www.realestate.com.au/property-house-vic-preston-118218903
$960,000 - auction - town house on a half block
http://www.realestate.com.au/property-house-vic-preston-116030099
$1,050,000 - auction
----------------------------------------------
A list of recent results -
http://www.property.com.au/property/356-high-st-preston-vic-3072
http://www.realestate.com.au/sold/in-preston,+vic+3072/list-1
----------------------------------------------
And it's just not residential RE going gang busters -
http://www.commercialview.com.au/356-high-street-preston-vic/commercial-...
Drove past the madness on the High St.
On the market @ $1.7M. Didn't stop to see what it sold for.
-------------------------------------------------
And we haven't even mentioned Sydney.......
How the hell with all that open land and tiny population can real estate go that crazy? Are there no builders doing the American cookie-cutter planned developments given the prices?
Its called "collateral" -and as long as the BoC has its exposure to the derivative house of cards, its needs to post a certain amount of collateral to be sure it doesn't come tumbling down.
To that end,as housing/mortgages/property values appear to be the bulk of the BoC's collateral posted to the worldwide derivative house of cards, the housing prices in Canada will continue to rise as long as the BoC can keep kicking them up to meet the increasing collateral needs of their derivatives exposure.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobs-review.com
http://www.comer.org/archives/2015/COMER_MarApr2015.pdf
Every Canadian needs to read this.
Worldwide; people should pay some attention to the basic legal concept of a country printing it's own currency. No BIS. No borrowing from for-profit banking.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://goo.gl/e4mV9C
What do you expect - they were further down the curve when the us subprime hit and at the time attracted lots of attention from on lookers who wondered why there home markets got panned while the canadians didnt suffer. Now its their turn for a bubble pop and ofcourse they will look to the american markets for their future prospects and see, cough, nothing.
mwhahahahaha wage rises... In a joined up free trade global economy wages in real terms are suprerssed by the lowest wages nations ---->>> China or the like.
Nice to see Carney BOE managed to get out of there just in the nick of time.
"In a joined up free trade global economy wages in real terms are suprerssed by the lowest wages nations"
I'd quibble about "free" but otherwise few realize how true this is, and how it allows printing without Wage push inflation.
CB gov says "expects growth in the economy to raise wages and make housing more affordable."
LIE.
Neither wages nor the Economy will grow under current CB monetary policy, just asset prices. Until they crash. Rinse, repeat.
It's the great leveling, folks. Riches for the connected technocrati (automatons of the elite) and eventually third world for everyone else.
Neofuedalism commeth.
Carney was pushed out by Harper, who was afraid Carney would call in favours at Goldman and try to take Harper's job.
Steve Poloz is a fuckwit who, I'm told, can barely manage the BoC, never mind a country. Because he's a mediocrity, he'll do as he's told. President Steve prefers it that way. He always preferred being the smartest man in the room.
Climate wise, the words "Canada" and "overheated" don't compute. Snark aside I'm a little surprised Canada's housing market hasn't already plunged considering the price of commodities in general and oil specifically.
Never underestimate the Central Banker's ability to use their subterfuge to hoodwink the sheeple into believing the music never stops. Take as an example, our RE debacle that culminated in the collapse of 2008. Yet around the world, the same tactics employed here in the USA then, are hard at work stripping wealth wherever it can be found around the globe.
DaddyO
I believe overvaluation is very high in Canada....Central London...Switzerland....HK...Singapore....all across India....
Out of all of these Singapore, HK, India firstly and then Canada and UK are susceptible....Switzerland should also correct significantly if bankers keep going to jail or billions keeps leaving Switzerland and job cuts keep speeding up due to strong Franc etc.
Spain and Dubai, I believe, will rise in a matured manner in the next 5 years. Rest of the entire world will slow down in the next 4-5 years in real estate pricing.
South of Spain is the most attractive investment, at this point in time, looking couple of years down the road for various unique reasons (rising population and tourism numbers, billions in investments, new hotels, summer travel by rich bringing tourism dollars, under valuation, equalisation of demand and supply due to no major construction in last 7 years, heavy investments by billionaires in last 1 year plus new Ford plant, highest bank by market cap across all EU, 61k transactions by foreigners in 2014, low interest rates, more ageing population and weakness in employment leading to more retirees moving to warmer Med climate, KKR and other PE funds along with Bill Gates, Carlos Slim, Zara's owner, Abu Dhabi, China investing....).
Still in the banking biz, DB?
This is perfectly normal in an artificial bubble-induced economy. When the bubble pops, it will be interesting. My guess is that the polar bears will have plenty of long pork to eat.
Have you looked at Australia?
We can't be far behind Canada here in Australia. In my backwater city of Adelaide the Chinese are now snapping up properties all over the place and forcing prices ever upwards. The Japanese tried the same thing a generation ago in Queensland and when their economy went "pop" so did that housing bubble. Expect the same thing when the Chinese economy finally busts.
Australian property valuations are 2x Canadian ones - the title of the article is wrong.
Obviously not... Canadian (Vancouver) prices are a real bargain compared to Sydney. $1 million for an average poorly constructed house here... at least the Canadians have a building code. Over here you ask for double glazing, you get a double glazed look.
huge varriable-interest rates. not mentioned. rates of 6% vs 3 1/2-4 percent does what to rents and prices of homes... lame article.
people buy a payment based on interest rate. 20 yr. broker thoughts...
People purchase a reduction in the amount of rent they would otherwise have to pay....since no one ever technically owns anything.
Buying a home is just a different way of paying rent. If you 'qualify' you can swap part of your rent payment for a promise to care for the land and building on the property for the state. Since your payments to the state (property taxes) continue in perpetuity, there never really is full ownership.
Stop paying the states rent and you lose what you supposedly own.
Home ownership is rarely a profitable venture. You're lucky if over time the cost of ownership doesn't go negative. When you factor in all the additional costs, like insurance, now that typically is around $1000 a year in my area and you live in the house 20 years...there's $20k that the house must appreciate in order to cover just that one expense. When you add all these home ownership expenses together you're lucky if you can get out of it later without a loss.
Steven Poloz, and Steven Harper, both eat retard sandwiches for lunch every day. Poloz always claims the economy is set to get better sometime down the road past the re-election of Steven Harper, and Steven Harper is always claiming he is not worried because his incompetent government is on-track with a 'balanced budget' and 'tax breaks for corporatists'. Frankly, our housing bubble will continue on inflating because that's all Ponzi shills like Steven Harper, and Steven Poloz, can do. If they raise interest rates the building/realty sector will crash outright. There is no possible way that the economy is going to improve and GM CANADA has just announced that it is taking the Camero out of Oshawa and back to the southern US. Unemployment in Ontario is getting extremely bad and the cocksucking/muffdiving neo-Liberals that run the province into the ground are selling off the Hydro-One Electric Utility just to raise enough cash to keep the lights on in Toronto. CANADA is going down for the count, but Harper and the CONs have all their assets denominated in USD so they don't give a fucking rat's ass what happens to our housing sector.
FUCK Harper & the NeoCONs.
That Camaro plant was built from the ground up with state of the art robotics. Minimal human labor involved in building that car. I don't know who is dumber, Canada for letting it go, or GM for blowing all that(taxpayer) money to move it.
So the new Camaro's won't fall apart and run like shit like the current one's?
the ink on the GM stock sale by the Canadian government wasn't even dry yet... follow the money
pretty much sums it up except that dumb ass Canuks think they're getting richer because their house is supposedly worth more fiat dollars from one year to the next so everything must be good.
Canada real estate is doomed. The only reason its held up so long is because of the five top banks in Canada are an oliogopoly, momopoly and they keep financing the 'craziness'.
My home, 1200 sq ft, 3 bedrooms (although it is on Lake Ontario), my wife and I bought it in 1996 for $240k, now its worth around a mill.
So do a reverse mortgage and laugh all the way to one of 5 monster banks. ;)
RM's are basically a 'Merican phenomenon, to pay for Meds, Healthcare and Eldercare.
The Plan/Scam is that you leave nothing behind for your family, when you croak and that they pay for your funeral.
Welcome to America and the America Dream, because you have to...
Reverse Mortgage...better think again. Canadian Loans are FULL RECOURSE!
Cant walk away....debtors prison dead ahead capt'n!!
RIPS
...or a sale-leaseback.
May be too late now, but I've been telling people to sell their home(s) to an investor with a stipulation that you can rent it back for X number of years.
This is the perfect way to lock in your gains, while not having to uproot and find a rental. There are (were) plenty of investors who would love to make a purchase knowing they have a stable renter in place.
Back when the US real estate bubble was nearing its inevitable burst, I had suggested to people like you that if they sell now, sit on the cash for as long as you can before needing to redeploy it for taxpurposes, and simply rent a place for the period until after the burst occurs, they could then repurchase their homes or one like it for perhaps 1/2 price or so and keep the winnings.
As for me, no desire to 'own' anything that the government can take back.
But when one of those two camps is subsidized by gooberment, there's a 0% chance it's not a bubble.
as prices rise and rates fall it all chugs fwd to point of cliff edge and vertigo.
hey, rates can go negative, so saddle up for longer ride than his article suggests.
as long as the loans are based on verifiable income and ratios are not fudged beyond .4 of overall debt to income this can ride on for a while.
its the fraudulent loans that burst the last bubble.
we will see.
ways to go.
except cali where h 2 o appears to be stopping the metaphoric rise.
in the midwest here, 8 percent rise, thanks.
just bought some moar raw land(fuck gold).
going there right now to remove some ju nk for recycling.
good luck and don't walk from a gift horse starring you down...
Taiwan would pass Canada on both these metrics. I live in a 750kUSD house and pay only 900/mo in rent.
And if we didn't have a mort-gauge (death-choke), we'd be living in 3000 sq.ft. home for $500/mo, where said 'rent' is called Property Taxes.
With no racial or crime issues in our Zip code in 'Cascadia', which is anything but diverse. BTW, kids here walk to/from school, w/o mandatory adult escort. And in our public schools, kids get to see educational movies that some consider to be rather libertarian. But our Zip is only a small glimmer of hope, to preserve a safe and idyllic way that used to be.
Yeah... but look at the amount of land or population density when compating Taiwan to Canada. 750K won't even get you a house in the boonies of Toronto any more. Maybe the sticks or badlands, but not the burbs or boonies.
@lanchende
Where the hell do you live? Here in Quebec, Canada in order to rent a 300K home one must at least pay $1600 in rent.
Suburbs of Taipei. Just looked at a 1.5mmUSD house asking 1300/mo in rent. Been a renter for years here. Waiting for the price collapse before I buy. Hope I live that long :). All mortgages are variable rates. When rates jump up the carnage will be epic.
Anyone with a pulse here can get a <2% interest loan.
Awesome, I'd love to move to Taiwan! How's the job prospects out there? Is Mandarin a must to join the workforce? At this point I'm just sick & tired of living in the Western hemisphere, I'd be willing to relocate where there are opportunities & no insane laws.
Most Weaterners that come here teach English. Any pther job would require Mandarin, but even then job prospects aren't good these days
HOw much of this is driven by UK flight capital in Toronto and HOng Kong/China flight capital in Vancouver
Supposedly half of the condos in Toronto are owned by Chinese and mideast investors.
Got popcorn?
High end real estate all over the wowrld is driving it all up becuase real estate has become the new washing machine for all the stolen tax dodge capital that is flooding the world right now
It's really hard for me to believe that our Prime Minister has a degree in Economics. You don't need a degree in economics to realize that when you have a mostly finacially illiterate generation tripping over each other entering into house bidding frenzies all based on ultra low interest rates that this will end VERY badly!! Here in Canada we have our very own Fannie Mae/Freddie Mac, it's called the CMHC. They are the financial "pushers" that have allowed this generation to get hooked on such ridiculously overpriced housing. The amount of debt that will be insured by the Tax Payers of Canada thanks to the CMHC has the potential to financially wreck this country. And still, our government and Bank of Canada governor blindly look the other way. I can understand some countries having ridiculously overpriced real estate because, yes, they have run out of land. Canada?? We could build a Billion more houses and still have plenty of land left over. THIS WILL NOT END WELL and again, the politicans, Central bank and everyone who has purchased at this peak of insanity will once again say they never saw it coming!
Aaaaaaand you expect him to say what? Something like, "Fuck yah its overvalued, EVERYBODY SELL NOW!!!".
In which case you'd be on here saying why was he so stupid to say that.
You can't have it both ways.
There is ZERO he can do. If he tries to do the right thing and deflate the bubble, he loses the next election. The next guy comes in, reflates it and everyone loves him.
You need to understand, the SHEEPLE in Canada, America, UK, etc. LOVE BEING LIED TO!!! They not only love it, THEY DEMAND IT!!!!! Because anyone that doesn't lie to them can never get elected.
The people LOVE unsecured credit as well as fractional reserve banking. They love it all.....ok, they are not too fond of inflation but if you gave them a choice of:
1. Removing unsecured credit thereby illiminating their ability to buy shit they cannot afford with money they don't have but prices will be stable or,
2. The way it is now.
They will ALWAYS choose the way it is now. Its a PARTY! Where have you been? If you end it (which is of course the correct and moral thing to do) you're voted out just like that. Splat.
This will NOT end until there is a massive crash and the vast majority of people lose everything, and I do mean EVERYTHING. It changes you and your children if 30 years of retirement savings disappear, poof, just like that. That will be burned into their minds and their childrens' minds for generations. We haven't had one of these rip-snorthing crashes for 3-4 generations now so the people LLLUUUVVV the easy money. What could go wrong?
It won't end till it crashes, Canada, USA, Europe, japan, China, everywhere.
Squid
Lets introduce some perspective here. House prices in major markets like Vancouver, Toronto and much of Alberta are certainly over-valued, the reasons are varied. Vancouver sees a srtong economy and substantial asian demand driving prices, Alberta is a boom and bust oil economy and has been for decades, although they also have agriculture and tourism. Native Albertans know this and don't tend to ever extend themselves, however with the oil boom of recent years Alberta, and Calgary in particular, has grown in population, driving prices and new Albertans are likely going to feel more pain, although certainly household debt throughout Canada is pretty high. Toronto house prices force most middle income families out of the market creating a huge housing belt surrounding the city. Many new immigrants settle in the Greater Toronto Area so the population continues to grow. In many other cities, even Montreal, prices are more reasonable.
The CMHC has rais down payment requirements for first time buyers and taking some other measures to limit their/our exposure nationally but the majority of people are truly sheeple and will likely see some difficult times. There's no point discussing reality with anyone since the security of the herd has them all brainwashed, and trying to debate them objectively is met with the patronizing derision of those who are secure in their delusions.
On the other hand, gold is holding at around $1500 CDN for a Maple Leaf because of the US$/CAN$ exchange rates, silver is around $24 for a silver Maple Leaf, pay cash and no id required, some people get it.
Harper has a degree in deep throating the CFR and other neo con institutions that's all. He has slaged Canada to these groups when he has met with them. He works for the transnational banking cabal and its entourage of transnational corporations period. Canada is a big club, has always been one , "and you and me, we aren't in it".
Bring back the igloo.
That'll probably cost you at least 300K. Are you sure you can get the financing?
Per year. You know,...it's an igloo. That or an unbelievable airconditioning bill.
Shhhhh! I'm trying to get some suc... I mean "investors" interested in the idea. I think igloos are definitely doable in the Middle East. Don't they have those indoor ski hills over there? Why not do igloos?
Shamelessly OT: Kate Middletits has undergone a second parturition:
http://www.dailymail.co.uk/news/article-3044227/Kate-Middleton-Prince-Wi...
Now that is how to keep the brainless masses distracted
Don't be so hard on yourself.
Wonder who/where those kids parents are.
RIPS
and the newest little rugrat is just fourth in line to the throne...
This one was 2 million over the listing price, time to short this bitch.
http://www.theprovince.com/business/Vancouver+home+sells+more+than+million+above+listed+price/11018591/story.html
Despite B.C's veneer of Liberalism it's population is very much class conscious. A friend of mine who lived in vancouver for several years told me that those high real estate prices are for weeding out the undesirables. B.C 's acronym stands for Bring Cash.
Forget about overvalued housing...A NEW PRINCESS WAS BORN! That's BULLISH, bitchez, now celebrate and wear shirts with flags on them.
Ahhhh, to be yanked from the proper womb!
it's probably incest
If you mean Justin, that news story is 40 years old.
If you mean the new daughter of Prince William, Duke of Cambridge, he and the Duchess have the congratulations of all loyal Canadians.
May God save the Queen of Canada and all her house.
Now I understand. That's why all of those flipping shows on HGTV are in Canada.
We're pros up here. The last time there was a boom (70's and 80's) followed by a crash in Toronto, there was an entire cottage industry in the 90's that came into existence. They bought empty homes from banks and "renovated" them. Just slapped a new coat of paint on that sucker and resold it for an extra 100K.
There were houses in crappy neighbourhoods selling for 400K in the 80's. It took 20 years to reach those highs again... and now they're heading to the stratosphere at over a million. Honestly, I don't even like walking in alot of those neighbourhoods, and now I can't even afford to live there. What? No bubble here. Move along.
Toronto became a multicultural cesspit in the 80's. Now half of the population of GTO are born abroad. I wouldn't even live there if you paid me.
be nice now :) Hey we could have bi-passed the "moral superiority"drama and walked straight over to the printing presses like our neighbours to the south! Our real estate chart looks like their stock chart and our stock chart bears a resemblance to their real estate chart :)
Yes. Though if you have any choice, why you're watching Canadian programming is beyond me.
Tons of canadian investors are making the move
to Las Vegas
www.ViewLasVegasRealEstate.com
Welcome to the party Canada. I heard a radio commercial in Arizona the other day, it stated there are 50,000 realestate agents in phoenix. Is that even possible? Arizona is so dependent on realestate that it goes grapes of wrath the second there is a downturn.
We have cheap oil, cheap gold now just waiting for housing to catch up.
it's so simple...transport a couple hundred thousand people from Asia to Canada every year for 30 years...Voila! A little market gets hot hot hot! Thank you banks and government! Real estate agents love you!
Can we trade them for Mexicans?
Immigration doesnt get a mention here. But its huge.
I work with many ppl from around the world. They all say the same thing about coming to canada.
Its a fkng expensive cover charge to live here.
A few hundred refugees make the papers, but the other 300,000 have to pretty much have a degree and empty their pockets on entry.
Igloos are more expensive due to Global Warming?
Nah... we'll just pull those old coal fire generating stations out of mothballs to run the air conditioners.
Oh yeah? Well this 12-foot-wide 900 sq ft home just sold for $1.35 million in Vancouver http://bc.ctvnews.ca/thin-home-big-price-12-foot-wide-vancouver-abode-ne... Anyone who can't see we have a problem here is absolutely insane!
@STG5IVE
Ridiculous price for this dump! One pays for Prime Location the house is obviously secondary.
Bubbalicious Bounty, load up and fill your diapers.
My hoos in UK is going up 80k per annum ( shit another grand as i write this ). Think i'll extend left and right and build a roof swimming pool and throw the rest into stawks. Life's a breeze. ill wind nah, what can possibly go wrong?
There's another way of looking at this graph, and I suspect I'm not alone in this. My house, in a somewhat far suburb of Vancouver, hasn't increased in assessed value much since I bought it a few years ago, roughly 2% a year, which doesn't make it a good investment (but whatever, I live there). What has happened though, is that I lost the job I had when I first bought it, and now work for 20-25% less income, as average salaries have been taking a serious hit around here over the last decade. So that dollar line going +35%? Yeah, it did in my case, but not because of the price of my house. I talk to a lot of people around here with similar laments. Almost nobody I know who has switched jobs here since around 2010 is making more at their new job.
I'd say that is equally true in the U.S. When I was laid off back in 2008, I was bringing home around $100K after taxes. Now I'm just getting back to making close to $100K before taxes...My wife and I are throwing a party next weekend, as I've been at this new position for 10 months and just got a raise. (Like that happens in this economy.)
Standard Disclaimer: And a special "FUCK YOU" to Jonathan Schwartz
The housing situation in Canada can be explained in four words, Canada Mortgate & Housing Corporation. CMHC insures 90% of the mortgages balance. To qualify you need a 10% down payment. The Banks can never lose because the taxpayer covers the loan.
So, the banks will keep this bubble blowing without fear of loss of any kind. Not a bad scam, eh?
20%
5% for first time home owners.
So Canada ALONE will see rising wages. How will you do that Harper? Follow the lead of Madura and raise wages by decree 30% (a few times?) YES!!! hyperinflation will fix your problem.