On this subject , anyone knows why Canadian RE hasn't suffered from the same problems as in the US ? I read banks were more prudent and regs are diiferent. But are there rent controls in Canada ? One thing that has been overlooked in this crisis is that IMO rent controls prevent RE bubbles to reach the size seen in the US and the UK. Europe didn't have an implosion of its RE, and I think that's one of the reasons. CAD strength against USD has been unbelievable, I have a hard time to believe it will continue more than a month or two here.
More strict lending requirements (especially mortgages) - no sub-prime. More strict capital requirements for banks. As for CAD/USD, I think you could be wrong on your forecast. It's currently at the level it was pre-crash, before the flight to safety of USD. GS today raised its 3-12 month forecast to $0.98. http://www.bloomberg.com/apps/news?pid=20601082&sid=aYN.vY_zZ5tU
investment banks are utterly useless in their forecasts. when oil was at $140 the target became $200. when oil was $30 the target became $20.
I disagree. We have same sh..t here. I sold real estate property in 2008, and the buyer was approved for an interest-only mortgage by her bank. If this doesn't sound like sub-prime to you, than I don't know what is. If Canadian economy is "envy of the world" (especially if this statement comes from the Canadian government itself) then it's the right time to sell. I am short Canada and have all liquid funds parked outside the country until CAD comes down. My horizon is 2-3 years. --
Canada's Housing Bubble: It's Not Different This Time http://network.nationalpost.com/NP/...g-bubble-the-greater-fool-theory-at-work.aspx
I've never seen rent controls in Canada. I don't know if it's a leading indicator, but I've seen in the job ads and several local car dealers been looking for car salesmen for a while now.
is my geography off? is it the case like the little known fact that Morocco is farther west than the the UK ?