The housing bubble is out of control in Canada, Australia and
other big countries. Of course my Canadian friends all think
"it's different this time". Speaking of "different this
time", check out HSI and where it potentially topped...
China's 9% GDP (and their insatiable demand for commodities)
is supposedly what is fuelling Australia and Canada.... I heard
that before.... in summer of '08, but it's "different this
time".... we are in "Super bull"! Rally on!!!!
I am Canadian and we are nowhere close to a bubble in real
estate..........Gimme me a break..........Prices have been
resilient but are not what they were like in 2006 in the
states..........There is actually high demand for real estate in
the larger cities exceeding supply.
Posted by sporopat on 17th of Mar 2010 at 03:51 pm
I'm just going to put my two cent in on this one. I live
in Toronto and my husband and I are looking to upgrade to a house
from our townhouse condo. We aren't in a hurry so we have
just been casually going to open houses in the neighbourhoods we
are thinking of moving to.
There are serious bidding wars going on and all the houses we
have looked at have been sold in 24 hours from when offers are
being taken, going for way more than the asking price. My
cousin put her house on the market and she sold it in 8
hours. There is definitely a frantic feeling in the
air. The open houses we've been too have been "tense" with
most people bringing their agents in tow.
I personally think it is because of the low rates and because of
all the taxes and rules that are going to be coming into
effect.
We are just going to sit tight for now. I could never
stomach bidding $100,000 more for a place. If space really
becomes an issue (when we have our 2nd kid down the road), we'll
rent out our place and then rent a separate place for
ourselves. I refuse to be part of a bidding war.
sporopat -- despite what someone else from canada said about
there not being a bubble, what you are describing is a perfect
description of a bubble. That's just not normal market
behavior. Wait a couple years, you'll buy a house
cheaper. The bottom isn't even in here in the U.S. and the
bubble has been burst for three years.
I've been following the real estate market in Ottawa for the
last couple years now. It's true that there's still high demand
here and it is very much a seller's market. However, I wonder how
much of it is being driven by low interest rates. The fact is
supply is growing at an accelerated pace, and I can't imagine
demand will keep up once the rates increase. For now the market
seems fine, but I have enough reasons for concern to keep renting
until things are more stable. The average price for a condo in
Ottawa has gone up 30% in the last year.
I don't know about a bubble, but house prices in Canada are
ridiculous. Was out in Penticton BC visiting my
father-in-law, and even there, in the middle of nowhere, crappy
little ranch houses on third acre or half acre lots are over
$400,000 -- more than they are on the East Coast of the U.S.
Mish Shedlock is an economist who was blogging about the US
bubbles and troubles a long time before they burst. He was
seen as "permabear", "buzzkill", "unrealistic" in 2006.
Remember Peter Schiff's warnings? Met with the same
defensive posture -- they laughed in Schiff's face at the very peak
of the housing bubble in the US. FWIW, Shedlock has turned
his attention to Canada. His articles on Canada (and there
are lots of them now) aren't written from opinions or bearish
feelings. He uses data and facts. Having Shedlock issue
warnings on your country is about as dire as Meredith Whitney
critiquing a bank.
Great article Matt
China's Housing Bubble
Posted by kalinm on 17th of Mar 2010 at 11:16 am
The housing bubble is out of control in Canada, Australia and other big countries. Of course my Canadian friends all think "it's different this time". Speaking of "different this time", check out HSI and where it potentially topped... China's 9% GDP (and their insatiable demand for commodities) is supposedly what is fuelling Australia and Canada.... I heard that before.... in summer of '08, but it's "different this time".... we are in "Super bull"! Rally on!!!!
I am Canadian and we
Posted by bullau on 17th of Mar 2010 at 11:22 am
I am Canadian and we are nowhere close to a bubble in real estate..........Gimme me a break..........Prices have been resilient but are not what they were like in 2006 in the states..........There is actually high demand for real estate in the larger cities exceeding supply.
Toronto Housing - My 2 cents
Posted by sporopat on 17th of Mar 2010 at 03:51 pm
I'm just going to put my two cent in on this one. I live in Toronto and my husband and I are looking to upgrade to a house from our townhouse condo. We aren't in a hurry so we have just been casually going to open houses in the neighbourhoods we are thinking of moving to.
There are serious bidding wars going on and all the houses we have looked at have been sold in 24 hours from when offers are being taken, going for way more than the asking price. My cousin put her house on the market and she sold it in 8 hours. There is definitely a frantic feeling in the air. The open houses we've been too have been "tense" with most people bringing their agents in tow.
I personally think it is because of the low rates and because of all the taxes and rules that are going to be coming into effect.
We are just going to sit tight for now. I could never stomach bidding $100,000 more for a place. If space really becomes an issue (when we have our 2nd kid down the road), we'll rent out our place and then rent a separate place for ourselves. I refuse to be part of a bidding war.
housing bubble
Posted by Michael on 17th of Mar 2010 at 05:10 pm
sporopat -- despite what someone else from canada said about there not being a bubble, what you are describing is a perfect description of a bubble. That's just not normal market behavior. Wait a couple years, you'll buy a house cheaper. The bottom isn't even in here in the U.S. and the bubble has been burst for three years.
Ottawa
Posted by mvachon on 17th of Mar 2010 at 12:09 pm
I've been following the real estate market in Ottawa for the last couple years now. It's true that there's still high demand here and it is very much a seller's market. However, I wonder how much of it is being driven by low interest rates. The fact is supply is growing at an accelerated pace, and I can't imagine demand will keep up once the rates increase. For now the market seems fine, but I have enough reasons for concern to keep renting until things are more stable. The average price for a condo in Ottawa has gone up 30% in the last year.
Canada housing bubble
Posted by Michael on 17th of Mar 2010 at 11:35 am
I don't know about a bubble, but house prices in Canada are ridiculous. Was out in Penticton BC visiting my father-in-law, and even there, in the middle of nowhere, crappy little ranch houses on third acre or half acre lots are over $400,000 -- more than they are on the East Coast of the U.S.
Title: Mish Shedlock on Canada... Mish
Posted by kalinm on 17th of Mar 2010 at 11:34 am
Mish Shedlock is an economist who was blogging about the US bubbles and troubles a long time before they burst. He was seen as "permabear", "buzzkill", "unrealistic" in 2006. Remember Peter Schiff's warnings? Met with the same defensive posture -- they laughed in Schiff's face at the very peak of the housing bubble in the US. FWIW, Shedlock has turned his attention to Canada. His articles on Canada (and there are lots of them now) aren't written from opinions or bearish feelings. He uses data and facts. Having Shedlock issue warnings on your country is about as dire as Meredith Whitney critiquing a bank.
Here is one such article:
http://globaleconomicanalysis.blogspot.com/2009/08/fiscal-stimulus-canadian-style_31.html
Another interesting blog:
http://americacanada.blogspot.com/