Bubble Watch Your source for news about Canada's housing bubble. Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole. http://canadabubble.com/bubble-watch.html Wed, 01 Apr 2015 21:14:00 +0000 en-gb What it would take for Canada's housing market to crash, and why Pimco says it won’t http://canadabubble.com/bubble-watch/2415-what-it-would-take-for-canadas-housing-market-to-crash-and-why-pimco-says-it-wont.html http://canadabubble.com/bubble-watch/2415-what-it-would-take-for-canadas-housing-market-to-crash-and-why-pimco-says-it-wont.html Michael Babad The Globe and Mail Jan. 31 2014

Pimco on housing
The world’s biggest bond fund manager expects a “cyclical decline” in Canada’s housing market, but says there’s little chance of a meltdown.

We touched on the comments from Pimco late yesterday, but, given the angst surrounding the residential real estate market, thought we’d go for a deeper look this morning.

“There has been much media attention on Canada’s housing market lately, with some forecasters calling for ‘the bubble’ to pop in 2014,” Pimco says in latest look at Canada.

mail@canadabubble.com (Administrator) Market Update Sat, 08 Feb 2014 02:53:41 +0000
Overbuilt condo market puts Canadian economy at risk: BoC http://canadabubble.com/bubble-watch/2414-overbuilt-condo-market-puts-canadian-economy-at-risk-boc.html http://canadabubble.com/bubble-watch/2414-overbuilt-condo-market-puts-canadian-economy-at-risk-boc.html June 13, 2013 Julian Beltrame Canadian Press

OTTAWA — An overbuilt and overpriced condominium market is posing a risk to Canadian households, banks and the economy in general, the Bank of Canada warned Thursday in its latest review of the health of the country’s financial system.

The central bank particularly singles out the Toronto condo market, which it notes continues to carry a high level of unsold high-rise units in the pre-construction or under construction phases.
Overall, the bank says it believes both global and Canada financial conditions have improved somewhat despite the subdued pace of the economic recovery.

mail@canadabubble.com (Administrator) Market Update Sun, 21 Jul 2013 05:40:30 +0000
More adjustment to come in home prices: Carney http://canadabubble.com/bubble-watch/2413-more-adjustment-to-come-in-home-prices-carney.html http://canadabubble.com/bubble-watch/2413-more-adjustment-to-come-in-home-prices-carney.html Feb. 17 2013 BARRIE McKENNA theglobeandmail.com

The correction underway in Canadian house prices is likely to persist for another two years, warns Bank of Canada Governor Mark Carney.

“We’ve seen the adjustment in the housing market. We think there’s a bit more to come over the next couple of years,” Mr. Carney told CTV’s Question Period in an interview broadcast Sunday.

Mr. Carney said rapidly rising prices experienced in Canada over the past decade are “certainly not normal” and Canadians shouldn’t count on home prices to be their main source of wealth gains.

mail@canadabubble.com (Administrator) Market Update Wed, 08 May 2013 05:40:58 +0000
Great Canadian real estate crash of 2013 http://canadabubble.com/bubble-watch/2412-great-canadian-real-estate-crash-of-2013.html http://canadabubble.com/bubble-watch/2412-great-canadian-real-estate-crash-of-2013.html Jan 9, 2013 Chris Sorensen macleans.ca

Keith Roy began warning his clients about a faltering Vancouver housing market in early 2012. The realtor says he was tipped off not by industry statistics, but by chatter across backyard fences. “When you hear about a homeowner who thinks his neighbour got too much money when he sold his house, you know there’s something going on,” says Roy. “That was the first clue.”

mail@canadabubble.com (Administrator) Market Update Mon, 18 Feb 2013 15:44:17 +0000
The Biggest Housing Bubble in the World Is in ... Canada? http://canadabubble.com/bubble-watch/2411-the-biggest-housing-bubble-in-the-world-is-in-canada.html http://canadabubble.com/bubble-watch/2411-the-biggest-housing-bubble-in-the-world-is-in-canada.html Jan 25 2013 theatlantic.com
How real is Canada's housing bubble anyway? More real than any other country's.
Canada has a new worthwhile initiative. After years of booming prices, that bastion of politeness north of the border is looking to avoid a catastrophic housing bust for something more, well, boring. Initiatives don't get more worthwhile, and perhaps not more difficult considering Canada just might have the biggest housing bubble in the world right now. ]]> mail@canadabubble.com (Administrator) Market Update Thu, 14 Feb 2013 16:48:01 +0000 Canadian families’ debt worse than expected; housing bubble burst feared http://canadabubble.com/bubble-watch/2410-canadian-families-debt-worse-than-expected-housing-bubble-burst-feared.html http://canadabubble.com/bubble-watch/2410-canadian-families-debt-worse-than-expected-housing-bubble-burst-feared.html Oct 02, 2012 Julian Beltrame, CP vancouversun.com

Debt picture ‘eerily similar to the U.S. experience, just before their dramatic housing bust’

OTTAWA — Canadian households are even more in debt than anyone imagined, according to a revised Statistics Canada calculation that gives a more accurate picture of family finances. ]]> mail@canadabubble.com (Administrator) Market Update Sat, 03 Nov 2012 05:34:51 +0000 Everything you need to know about Canada’s housing ‘bubble’ http://canadabubble.com/bubble-watch/2409-everything-you-need-to-know-about-canadas-housing-bubble.html http://canadabubble.com/bubble-watch/2409-everything-you-need-to-know-about-canadas-housing-bubble.html Oct 24, 2012 Mamta Badkar financialpost.com

Canada avoided many of the mistakes that the U.S. made in its housing market.

Banking regulations and lending standards have been much tighter, and that has prevented prices from getting completely out of control.

However, top economists including Robert Shiller and David Rosenberg are increasingly sounding alarms that the Canadian housing market is the next bubble and its about to burst.

Canadian home prices are up nearly 100% since 2000, according to Euro Pacific Capital. And there are other characteristics that do bear some striking resemblance to America’s housing boom-bust story. Moreover, this comes at a time when the nation’s economic outlook has become uncertain.

We put together a guide to Canada’s housing debacle on a national scale, and focused on Vancouver and Toronto in particular where homes have become increasingly unaffordable.

mail@canadabubble.com (Administrator) Market Update Wed, 24 Oct 2012 18:40:23 +0000
As housing market slows, industry scrambles to paint positive picture http://canadabubble.com/bubble-watch/2408-as-housing-market-slows-industry-scrambles-to-paint-positive-picture.html http://canadabubble.com/bubble-watch/2408-as-housing-market-slows-industry-scrambles-to-paint-positive-picture.html Oct 3, 2012 Garry Marr financialpost.com

Organized real estate is unable, it seems, to admit the glory days may be behind it.

Sales plummet in major markets and the industry comes up with a new explanation for the decline, draping its comments with a sense that everything is just fine. The excuses are piling up.

This month’s gem comes from the Toronto Real Estate Board: It complained September didn’t have enough working days — too many weekends.

mail@canadabubble.com (Administrator) Market Update Sun, 14 Oct 2012 07:21:51 +0000
A nightmare on Main St: The CMHC and the Canadian housing bubble http://canadabubble.com/bubble-watch/2407-a-nightmare-on-main-st-the-cmhc-and-the-canadian-housing-bubble.html http://canadabubble.com/bubble-watch/2407-a-nightmare-on-main-st-the-cmhc-and-the-canadian-housing-bubble.html August 10, 2012 Michael Laxer rabble.ca

The numbers are becoming increasingly clear; the bloom is off of the Canadian real estate bubble and boom.

Among a variety of indicators, sales of condos in the second quarter of this year in Toronto have fallen by half and a record number of units were left unsold. In Vancouver July residential sales were the lowest for any July in ten years and fell 11.2% from the month of June.

mail@canadabubble.com (Administrator) Market Update Fri, 10 Aug 2012 15:19:34 +0000
Canada plans no new steps to cool housing market: finance minister http://canadabubble.com/bubble-watch/2406-canada-plans-no-new-steps-to-cool-housing-market-finance-minister.html http://canadabubble.com/bubble-watch/2406-canada-plans-no-new-steps-to-cool-housing-market-finance-minister.html Aug 02, 2012 Edwin Chan ca.reuters.com

SUNNYVALE, California (Reuters) - Canada does not expect to have to tighten mortgage rules further as the real estate market has softened in the wake of government measures to cool it down, Finance Minister Jim Flaherty said in an interview on Wednesday.

Home prices hit a third straight record high in June, extending a steady climb that had triggered fears of a property bubble. But a slowdown in the pace of price increases suggested to economists the red-hot housing market is cooling.

mail@canadabubble.com (Administrator) Market Update Fri, 03 Aug 2012 01:08:00 +0000