The invincible canadian real estate market

The Canadian Real Estate Association is predicting the Canada resale housing market will remain ‘at or near record levels’ this year.

“The statistics again show just how different the housing markets are in Canada and the United States. Canadian realtors know that Canadian mortgage lenders correctly see that home prices will continue rising.”

The association sees three factors that it believes will save Canada’s housing markets from the woes engulfing the sector in the United States: consumer confidence, employment and affordable interest rates.

CREA economist Gregory Klump said the market will pull back from the “breakneck pace” of 2007, but this is still forecast to be the second-busiest year on record in almost all provinces.

Average prices are forecast to continue rising in record territory, but the increase is likely to become slower, to 5.5 per cent nationwide.

“Slower job growth, not massive layoffs, are forecast for Canada in 2008,” Klump said.

What I’d like to know is which parts of canada will rise as forecast? Are there any overpriced Canadian markets that risk a drop in prices or will we see a steady rise across the board?

note: For a comprehensive look at why all might not go perfectly for the Vancouver market check out Mohicans Bubble Uberpost over at Financial Planning and Personal Sanity.

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West Toronto Realtor
12 years ago

As a West Toronto Realtor I can only say, that the prices in Canada will rise slightly, but we don´t have to be afraid of U.S. real estate crisis.

To your question, there are some cities, in which, the prices were increasing faster, then in others, like: Edmonton, Vancouver, Saskatoon and so on.

Gordon
Gordon
12 years ago

It's Time……Just look to Calgary to see that even with high oil prices and fantastic employment prices can drop considerably. I have developed property in Vancouver for the last 20 years. I bought my last properties about 9 months ago and I am NOT buying anything else. Part of the problem is that people think they can buy some real estate for little down and when it comes time to take possession just dump it for easy money. That coupled with the fact that a lot of younger people have never seen a real estate downturn, as well as the fact that EVERYONE seems to be a real estate mogul or speculator in Vancouver and around BC right now. I have news for these people. At 1000+ per square feet our prices compare to dense world centers like Paris and… Read more »

btk
btk
12 years ago

Doh! RVYC= Royal Vancouver Yacht Club.

btk
btk
12 years ago

By the way "RYVC" means Royal Vancouver Yacht Club.

Anonymous
Anonymous
12 years ago

"sorry out of time I think there nothing much left to explain."

OWNED!

Strataman
Strataman
12 years ago

A krrish1. "Recession is a fear if that wont let you sleep you should buy full pack insurence which cover all clauses from job loss to anything else." Actually a pretty decent argument on the whole, one question though..insurance only really works if few claim against it. It's a statistical question. What is your honest opinion of where insurance would go if a couple of thousand people in Metro Vancouver claimed?(Thats not many really but let's do a thought experiment, 3000 people claim for lost work, what do you think would happen?) What do you think your premiums would be next year if the major insurance companies were receiving more claims then they could handle financially? Honest answer now! By the way best nonsensical post I've seen from you!

btk
btk
12 years ago

I rest my case

krrish1
12 years ago

Q.The point is buying real estate today is a bad idea. There are endless statistics to back this up. A.This situation is similar to a work place if all worker go on strike for ever that bussiness will be dead. Q.Are these still a great investment Krisshh? A.Yes,I had explained the building get feuled with upto date construction cost,similar to renovate interior. you can measure the fear if whole of the building is listed in mls only few people like to sell so catch them before they run. Q.Correct me if I’m wrong but it seems your position is that we should all go out and buy today at these all time highs because consumer confidence is good today and that means that the prices will go up forever. A.You have to think of your best if price go up… Read more »

btk
btk
12 years ago

Having read and re read my own posts and Krissh's responses. I can't see him answering any of my questions. Certainly some of the questions were relevant. I see he countered that there is a 2-5-10 new home warranty, which is great except the leaky windows shows up afterward the warranty. Note the high rise that's about 14 years old, I think it's 11C Drake, is about to or has already been tarped and there is another one of a similar vintage building on Richards (1400 block). Are these still a great investment Krisshh? Are the "wiseman" lining up to buy them? If no, does that mean only new units appreciate? If only new units appreciate, won't these new units be ten years old in ten years? Are you saying that we should only be buying new units? It seems… Read more »

patriot1
patriot1
12 years ago

And the latest slice of baloney is served up by RBC:

G&M Story

"In Alberta, resale house-price gains are expected to slow dramatically, from 30 per cent in 2007 to the 9 per cent range this year. Gains in Saskatchewan should cool from the 30 per cent range to about 15 per cent, according to RBC."

Earth to RBC: prices in Alberta are down 10-15% from the peak in mid-2007.

Remember folks: "house-price gains are expected to slow dramatically" is analyst-speak for "I know prices are falling but my bosses won't let me say that".

blueskies
blueskies
12 years ago

MR

check out "The Long Emergency" book by

J. Kunstler

it's over! tits up! baby!

Michael Randallbard
12 years ago

Anybody hear that caller on the Bill Good show on CKNW this morning tear a strip off Cameron Muir? The caller questioned why we need growth at all resulting in all the extra expense that goes with it. Bill said 'oh then you would be in favor of closing the door" to which the caller said "yes, it has to end somewhere (unbridled uncontrolled growth) and now is the time to do it. He argued that all of the problems that we have here weren't here 20 years ago and this proves its overpopulation that is ruining the quality of life in Vancouver and he challenged Bill to have a poll of the area residents who are stuck in traffic day to day whose lifestyle is suffering because of the few who are profiting from this growth and accused Muir… Read more »

Andreas
Andreas
12 years ago

Most people will just view this as racist.

blueskies
blueskies
12 years ago

total panick mode if he can’t make 25% each year to break even!

exactly! he sees it coming!

the market is a remorseless beast bearing no animosity to any given individual.

but leveraged assets have a way of biting you in the ass at the most inopportune moment.

iliquidity is a bitch!

Strataman
Strataman
12 years ago

blueskies: "i would suggest satv/krrrish is a realtor selling to specific ethnic community" Possibly but my guess is an amateur investor with possibly 2 or three places, all his eggs in one basket, highly leaveraged and owns nothing as in clear title, (which mr krrrsish I happen to have in a recreational property and 3 bedroom cabin, small boat, great shop(place where you work krrrsh not a mall) and have had for 23 years now, and where I will retire debt and tax free). krrrssish strikes me as a barely educated (probably paid for it and his drivers license through bribes) type! And he's probably in total panick mode if he can't make 25% each year to break even!

blueskies
blueskies
12 years ago

i would suggest satv/krrrish is a realtor selling to specific ethnic community where referrals and word of mouth are critical. possibly even the manager in a multi broker office.

the news coming in is all bad. everything hinges on consumer confidence and he sees this waning

a little too strident to be just “dicking” around……

blueskies
blueskies
12 years ago

sorry!

equating you with Aaron was an egregious error on my part….

a coupla beers later!

Strataman
Strataman
12 years ago

whew!! you scared the crap outa me mistaken for a realitor was distressing as hell! 🙂

blueskies
blueskies
12 years ago

sorry i meant that satv was a scared realtor

your posts are lucid informative and pleasingly bearish 🙂

Strataman
Strataman
12 years ago

blueskies "i would suggest he is a realtor selling to specific ethnic community where referrals and word of mouth are critical. possibly even the manager in a multi broker office." Me?? 🙂 I'm a building systems consultant, a technical guy, electro-mechanical engineer. 🙂 I just associate with a whole lot of strata members and Property Managers thru my business so gain some inside perspective! I also see the guts of many many buildings and see a lot of sh**t buyers never know (till they call me)! 🙂

blueskies
blueskies
12 years ago

Next post should be strataman to make a team of losers!Right?.

i would suggest he is a realtor selling to specific ethnic community where referrals and word of mouth are critical. possibly even the manager in a multi broker office.

the news coming in is all bad. everything hinges on consumer confidence and he sees this waning

a little too strident to be just "dicking" around……

krrish1
12 years ago

Drachan,

on troll you are right! when there is nothing for me, I won't pick up to much that make us quite and time saving from the free assisting service [no money to make].

krrish1
12 years ago

blueskies,

Next post should be strataman to make a team of losers!Right?.

Drachen
Drachen
12 years ago

Oh and btw, I don't think he's faking it. I've seen enough trolls in my day to know. If he were just a troll he'd have gotten bored of this by now, trolls by their nature have a very short span for these things.

Drachen
Drachen
12 years ago

I think I understand at least 1 leg of Krrish's problem. I wonder how common this thought is.

He seems to believe that in order for house prices to drop by say 50% that ALL houses have to drop that amount in their owner's minds. When in reality all that's required for prices to drop that much could be as few as 2-3% of the total number of houses selling at those prices because in reality it's only the ones that sell that determine the market numbers for ALL of the houses.

It's extraordinarily convoluted logic but that seems to be what he believes.

blueskies
blueskies
12 years ago

and is probably giggling as he writes it.

i detect a thin insistent thread of fear in

the postings… a stream of consciousness primal scream. the market beast is slowly catching up, he can sense the hot breath of utter failure a palpable sense of doom…

the typing skills are akin to hyperventilation.

folks… he is truly scared shitless!