Canadian housing bubble thread

Discussion in 'Economics' started by m22au, Apr 11, 2017.

  1. m22au


  2. it's one of the many bubbles caused by prolonged low interest rates

    interest rates need to rise for these bubbles to pop
  3. m22au


    Interest rate rises would be a sufficient requirement to burst housing bubbles in Canada (and Australia), however I doubt that they are a necessary requirement.

    There comes a point in some asset bubbles (such as Toronto real estate) where the initial decline from a peak can be simply be due to the existence of high prices. Then once the decline starts, the momentum feeds on itself on the way down.
    Zr1Trader and VPhantom like this.
  4. _eug_


    This is a great blog about Canadian Real Estate. Great entertainment.

    I'm in Canada and renting in our Major cities costs FAR less then home ownership.
    VPhantom and m22au like this.
  5. i960


    AKA blow off top and sellers hitting the bid on the way down. Standard market dynamic type stuff.
    VPhantom, Max E. and m22au like this.
  6. JSOP


    Housing bubble? What housing bubble? LOL The housing prices growth is very uneven across Canada. Basically whatever the cities that the Chinese choose to buy houses in, those are the cities that will have meteoric rise in housing prices, cities like Vancouver and Toronto. Albertan cities like Calgary and Edmonton had a bit of rising housing prices during the oil boom but now that the oil is bust, so did the housing prices there. The rest of Canada like the Atlantic provinces and Quebec, there had never been any housing price growth, only housing slumps because the Chinese don't want to go there. LOL

    So there is any housing market over-heating and you are concerned, all you have to do is implement some ways to deter foreign buying like the rest of the places that Chinese like to buy properties and problem solved!
    VPhantom likes this.
  7. koolaid


    there's alot of demand from foreigners (china and southeast Asia)'s ain't your typical housing bubble from 2008 that was propped up by subprime with borrowers who were making 12$/hr taking out 300k loans. These Chinese will bring suitcases and wads of cash to buy properties...without house inspection...sometimes sight unseen. These guys have money...and they want to transfer their wealth to a more stable country like US...CAN...AUS...EU.
    VPhantom likes this.
  8. JSOP


    Well just so you know in Canada there was NEVER any subprime loan crisis like in United States that ultimately caused the financial crisis of 2008. There is strict banking and lending laws and procedures in place that prevented the existence of subprime loans. No housing bubbles, IF there is any have either been brought up by the immigration and foreign buying or oil boom.
  9. m22au


  10. The bubble will never be allowed to just pop. Don't even bother betting on it.

    It is one of those countries where any amount of pain is not allowed and a bailout will most certainly be on the horizon to put a floor on any brewing crisis.
    Last edited: Apr 12, 2017
    #10     Apr 12, 2017
    murray t turtle likes this.