Anyone have any insight on the role of the Canadian banks in financing the property bubbles in Vancouver and Toronto?
Get in while you can lads…
Try your hand at this game:
Canada is in very similar situation to Australia, same bubble, same dutch disease economy. I think they will pop together!
Oh God, implications for the Canadian Dollar?
We only compare ourselves to the greenback over here so as long as it falls quicker than ours, we’ll feel rich.
I just returned ( to the US) from Canada.
It was like stepping back in time to Chicago circa 2006.
“Housing valuations have lost all touch with fundamentals and household debt is at a record high,” economists at the research consultancy Capital Economics say in their most recent Canada Economic Outlook, issued Wednesday.
“Our fear is that, with the housing bubble now close to bursting and commodity prices retreating, Canada will go from leader to laggard.”
The report predicts a fall in house prices by as much as 25 per cent over the next three years.
A domestic housing boom coupled with high commodity prices worldwide have spared the economy the severe recession felt by other developed countries.
‘Housing valuations have lost all touch with fundamentals.’
Hmmm… Although I have a permanent job here and no debt, I’m wondering should I go home to Canuck land…
Is the CMHC financing a house of cards? → theglobeandmail.com/report-o … le2137716/
Is Canada in bubble-trouble? Check out what the experts have been saying since 2009 **-> blog.buzzbuzzhome.com/2011/08/is … k-out.html
When they start mentioning soft landings you don’t have long left to sell…
To be fair, outside of Vancouver and the downtown cores. Housing where I live north of Toronto is extreme,y affordable.
It’s not like Ireland where shot holes in Leitrim cost more than my 5 year old 5000sq ft house with all the bells and whistles. I’d say 10% maybe for some properties in the burbs.
We are so far away from what Ireland/USA experienced for most people.
The real problem is going to be condos etc downtown. Full of speculators
BC is totally fucked. I have no idea how people afford to live there. It is all bloody Chinese now anyway
Vancouver gets too much attention. It’s a special case, delinked from the Canadian market by Chinese money.
You can see how Albertan prices march to their own oil-powered drumbeat separate from the rest of the country. Out East in Newfoundland, our oil boom continues and still offers excellent opportunities for buying into a bubble.
Merrill: ‘classic bubble’ signs in Canadian housing market → theglobeandmail.com/report-o … le2276241/
And another cause for concern: