A Brief History of the Housing Bubble

A really good overview and analysis of the U.S. Housing Bubble at OCHousingnews.com. The build-up, collapse, stimulus/supply mgmt. and current double dip all covered in detail.

http://ochousingnews.com/news/a-brief-history-of-the-housing-bubble

From 2003 to 2006, American lenders and borrowers inflated a massive housing bubble. From 2007 to 2012, this bubble has been deflating, but the bottom is proving elusive. The housing market is closer to the bottom than to the top, and if a viable solution can be found to bring supply and demand into balance, the tremendous affordability from low prices and low interest rates will help a bottom form in the near term.

87 Responses to “A Brief History of the Housing Bubble”

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    blueskies Says:
    1

    http://www.zerohedge.com/news/shanghai-new-home-p

    from Garths' blog:
    he of throbbing penetrating prose

    shouldn't affect the wet coast…………

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    Continuing on the Chinese bubble theme:

    [Bubble Watching: Hainan edition]

    mind-boggling amount of empty condos.

    "Local people said, however, that no local people would ever buy them. Those are for northerners. Asking local people on their views on when all these properties will be occupied, their answer is “never”.

    While Ordos, Zhengzhou new district and others have been popularised in Western media as the “ghost cities” of China, a manifestation of the Chinese property bubbles, empty properties are just too easily found in China, just probably not at that kind of scale as one could see in those now-famous ghost towns."

    http://www.alsosprachanalyst.com/real-estate/bubb

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    "if a viable solution can be found to bring supply and demand into balance"

    That viable solution can be found near the front of any elementary economics textbook. It's called lower prices.

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    By The Limerick King

    The China collapse has begun

    The property trade is now done

    Despite all the cheers

    It's time for the tears

    But blowing that bubble was fun!

    http://www.zerohedge.com/news/shanghai-new-home-p
    (From the comments section)

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    Anonymous Says:
    5

    for those who keeps quoting Garth: sell your wife, she is in a bubble too!

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    @Meh:

    Don't U know Great China has 20000 billion US in reserve.Us and Canada will collapse billion yrs ahead of our dear Motherland;For,Canada Chinese will help u guys to pull through the disaster if you guy cooperate with Chinese foreign and military policy.Leasing out Vanoucer to Chinese Navy would be a best antidose to help Canada.Chinese Army and Navy personnel will be shopping in Vancouver in millions.

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    @patriotz:

    "That viable solution can be found near the front of any elementary economics textbook. It’s called lower prices."

    Wouldn't it be nice if basic economics was taught in elementary school, from the effect of supply and demand on prices, to little words like debt, deficit, profit etc.

    Why, at a time of record Canadian household debt and global economic crisis, is the UBC faculty of ed ramping up lessons on aboriginal history and social justice, but not basic economic literacy?

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    @chip:

    Well first of all there is not an inherent conflict between teaching social studies and anything else.

    Second universities don't determine what's taught in the schools, governments do.

    Which brings us to the third, governments really don't want the population to be economically literate because there are too many special interests they are beholden to – the RE industry being the most obvious one at the moment – who don't want that.

    Economic literacy used to be a necessary life skill which parents passed on to their children. We are now 3 generations past real hard times so that path is dying out.

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    you forget how to make a hyper link?

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    Lastest Case-Shiller Housing data is out. Tampa, Atlanta, Las Vegas and Seattle all made new post-bubble lows in November.

    Updated chart showing total peak-trough % drop by city:
    http://www.bespokeinvest.com/thinkbig/2012/1/31/u

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    Don't be a dick Says:
    11

    @NoNo

    You forget your manners, prick?

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    Best place on meth Says:
    12

    Follow up to yesterdays Martin Armstrong real estate coverage thread.

    http://www.martinarmstrong.org/files/Global%20Rea

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    http://www.moneyville.ca/article/1124059–canada-

    I was a little taken aback by the description of "an average person" who at 56 (circa 2005) was in debt $140k. This was spread over 15CC and a home mortgage – hopefully most of the debt was the mortgage. Still who has 15CC? They probably have a part time job just checking the balance on all those CC.

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    Best place on meth Says:
    14

    @crashcow:

    Vegas has clearly overshot fair value on the way down which often happens when a massive bubble burst. It looks like a good investment now.

    What do you say Vancouver homeowners, trade your run down hovel on Knight Street for 10 Vegas houses with swimming pools?

    Live in the nicest of the 10 and rent out the other 9 for gobs of income while you enjoy your early retirement in a warm , dry climate?

    Nah, never mind, you're too stupid to do that – in your dim minds there's no bubble in Vancouver because of <insert stupid <b>running out of land, Chinese money, everyone wants to live here narrative here>

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    @0×13: In the article it says $140K was credit cards only. Mortgage was extra.

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    googled "china home prices."

    smiling.

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    Comment from unmentionable blog:

    Sherry Cooper: “more like a balloon than a bubble. While bubbles always burst, a balloon often deflates slowly in the absence of a ‘pin’.”

    DAVID LEREAH: “Balloons don’t burst. You can put air in a balloon and it can expand or you can deflate a balloon, where air comes out….But now air can come out of the balloon rather than the balloon popping.”

    Who knew Sherry Cooper would be our David Lereah.

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    jumpin in Says:
    18

    http://www.huffingtonpost.ca/2012/01/31/canada-ho

    Canada Housing Market Beginning To Resemble U.S.'s Subprime Mess, OSFI Documents Reveal

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    Mortgageslave Says:
    19

    @Best place on meth

    I've heard that the property taxes can be quite ridiculous in the US as cities aren't getting the tax money they used to. Anybody know what property taxes are on a 120K house in LasVegas?

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    Developer in China cloned entire world-renowned Austrian town of Hallstatt, an UNESCO World Heritage Site. Unfortunately, it's not sellin'. Zero buyer.

    Nearby local residents are confounded by the "strange architecture" of this cloned town. "I don't understand why any rich people would want to live in this mediocre area"

    Developer had advertised "everyone in China wants to live here".

    Developer also planned to add sections that does not exist in Hallstatt, such as the entire street where Mozart was born.

    Austrians are understandably enraged when they heard their treasured town is being cloned. A complaint had been filed to UNESCO.

    <a href="http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2 Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D423945%2Flang%3Dschinese.html&act=url” target=”_blank”>http://translate.google.com/translate?sl=auto&amp…” target=”_blank”>Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D423945%2Flang%3Dschinese.html&act=url

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    "in order to improve the realism of this piracy, the developer plans to introduce horse-drawn carriages and a lot of pigeons."

    Like or Dislike: Thumb up 0 Thumb down 0

    @VMD: "…and a lot of pigeons.”

    Well, they'll never be hungry.. :roll:

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    patriotz patriotz Says:
    23

    @Mortgageslave:

    Seem to be about 1%.

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    Anyone want to have a look at V928909? any bet on which digit is extra? Looks like fat fingers at REBGV!!!

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    Anonymouse Says:
    25

    @patriotz:

    "Which brings us to the third, governments really don’t want the population to be economically literate"

    I like conspiracy theories.

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    Anonymous Says:
    26

    Interesting tidbit from the winnipegfreepress.com today.

    "At Sept. 30, CMHC had insured $541 billion in loans compared with $501 billion a year earlier and $514 billion as of Dec. 31, 2010. Under the National Housing Act, the agency is limited to $600 billion in total outstanding insured amounts."

    Will the CMHC be allowed to raise their limit or is this finally nearing an end?

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    Anonymous Says:
    27

    @DEFAULT NAME:

    Is the Pope Catholic?

    Like or Dislike: Thumb up 0 Thumb down 0

    #7 @chip: For what it's worth, I don't see how you could approach a discussion of social justice without economic literacy.

    Like or Dislike: Thumb up 0 Thumb down 0

    #27 @DEFAULT NAME: Pope, we're waiting on a response for that. Kidding.

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    Anonymous Says:
    30

    #24,

    i thought you are busy packing to get your 100% salary increase in europe. no?

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    @Best place on meth:

    What do you say Vancouver homeowners, trade your run down hovel on Knight Street for 10 Vegas houses with swimming pools?

    Live in the nicest of the 10 and rent out the other 9 for gobs of income while you enjoy your early retirement in a warm , dry climate?

    How many Las Vegas homes do you own?

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    Troll: "How many Las Vegas homes do you own?"

    Priceless :)

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    Brainburst Says:
    33

    @Troll:

    None, they are still fairly overpriced. I'll wait for LV houses to come down 43.5% of their current price before I revisit my risk plan and decide either to buy a few of them or wait a bit longer let them go down even more. No rush on my side.

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    Best place on meth Says:
    34

    @Troll:

    >>>How many Las Vegas homes do you own?<<<

    Same number as I own in Vancouver, therefore I can't take advantage of this once in a lifetime 1 for 10 trade opportunity.

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    Best place on meth Says:
    35

    Sales look dead today, MLS must be malfunctioning.

    No wait, listings are brisk – everything is just fine.

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    Best place on meth Says:
    36

    Cheerleaders say Vancouver can't have a crash because of low interest rates.

    Well cheerleaders, please don't take any notice of the 2.97% 15 year fixed on the right hand side.

    http://www.zillow.com/local-info/NV-Las-Vegas-hom

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    Anonymous Says:
    37

    BPOM, go sucked your fresh milk. it's due.

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    @Best place on meth:

    Same number as I own in Vancouver

    So you're either broke or too chicken to take advantage of this huge 'opportunity'? Which is it?

    Like or Dislike: Thumb up 0 Thumb down 0

    @DEFAULT NAME:

    "BPOM, go sucked your fresh milk. it’s due."

    Are you irritated by the sales number today? Or maybe it's the inventory building up?

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    jumpin in Says:
    40

    I cannot wait for the end of the month statistics…

    Do you know any good URL, apart from Larry's?

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    @jumpin in: I guess this site is the best, just wait for paulb to provide the #s tonight and VMD to provide his daily stats.

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    jumpin in Says:
    42

    This video is for Sherry Cooper to reflect on metaphors: http://www.youtube.com/watch?v=Qp94Nqzu0dc&featur

    I will send her the link, telling her how scared I feel. http://www.sherrycooper.com/
    economics.department@bmonb.com

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    @Makaya:

    it would be BPOM/ZRH2YVR/Jesse/VHB in addition to paulB that provide most of the stats/analyses : )

    I'd love to have alternate access to stats too..

    a realtor friend will come in handy..

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    Paraphrasing Trevor Bodie, on CBC, just now:

    "Nobody's able to envision a Vancouver post-housing-boom. What the heck *is* Vancouver if property values aren't rising all the time?"

    This was a short item discussing the departure of Brent Todarian, the director of planning. It'll probably show up here:

    http://www.cbc.ca/onthecoast/episodes/

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    OMG, even after all of these dire news reports this week, Global is completely PUMPING real estate right now!!!

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    Best place on meth Says:
    46

    @Troll:

    >>>So you’re either broke or too chicken to take advantage of this huge ‘opportunity’? Which is it?<<<

    You poor, angry, illiterate troll.

    Which part of What do you say Vancouver homeowners, trade your run down hovel on Knight Street for 10 Vegas houses with swimming pools? did you not comprehend?

    Was it the word "homeowner" or "trade"?

    And here I thought you were just obnoxious but it turns out you're actually a complete moron with zero comprehension skills.

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    Couple of thoughts for month end.

    – We're down about 20% in volume over last year.

    – Worst volume decreases are Van-West and Richmond detached. Van-West did pick up a bit in past 2 weeks but will still be down about 50%.

    – Listings in the last part of month were in line with history while first 2 weeks was very very high. Thus, listings were up quite a bit over last year and are likely a record January.

    – CNY likely had some impact. Would be interested if anyone has specific anecdotes from the street. However, based on the numbers out of China right now and the fact that January really is a bust overall, it has not impacted the numbers here significantly.

    – 2 Ultra-high priced properties sold in month. One more today at $15M. There have only been 8 transactions ever on MLS with this price level so to have 1 each of the last two weeks is fairly unusual. These 2 properties alone will "Skew" the average selling price of SFH in January up by approx $50-60,000. Watch for this in the averages and see if anyone actually mentions it.

    – Volumes are somewhat still humming along with apartments in Vancouver not showing signs of collapse but prices are not going up (they are in fact falling a bit) and volumes are not really high. (over 8 MOI which is quite high for this market).

    – Many sellers this month realized losses. Condo buyers over the past few years have not been doing very well. Thus, the "2nd time buyer" is pretty scarce now as they have no more equity now than they did 4 years ago and wage gains are nowhere to be found. It's not that hard to find people who bought since 2007 that are not up on the purchase of a condo.

    This blog is a great outlet for people to get the real story. There are a few people placing reliable information out there and for anyone who wants to know the true market – read the REBGV monthly stats package for January. Go to REBGV site and look at the latest inventory by area. There are many regions which are somewhat in the same place they were a year ago and are fairly stable. However, some areas are now showing significant change first in inventory and in the future we will have to see price changes.

    This month we also learned the difference between a baloon and a bubble (and also learned they are both full of air). Also we realized that the 6pm news on Channel 11 is actually just an informercial pushing real estate. Many banks have come out and stated there are issues with real estate values and even those who don't say there is a Canadian problem, state that Vancouver is a problem.

    If you search for information, you can learn that the Chinese property market is doing very poorly and they are reporting worst CNY since 2004. I think that Vancouver can not escape this.

    Predictions for February are.

    Listings will be similar to last year.

    Sales will come in under last year by approx 20%.

    Average price will fall as the effects of the ultra-luxury transactions taper off (well – maybe we'll see some more but not likely).

    More of the same.

    Now – Let's see how REBGV says what is happening. Any bets? I'm going with the following.

    Buyers have more choice

    Buyers have more time

    Sellers have to price appropriately

    Never been a better time to buy given low rates.

    Let's see what Larry has tomorrow on the stats as his avg. price graph is always one of the first to come out!!

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    http://www.bloomberg.com/news/2012-01-31/hong-kon

    bloody Year of the Dragon…

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    Best place on meth Says:
    49

    @vangrl:

    So much for astrology, lucky numbers and any other bullshit they base life decisions on.

    They would have been better off if this was the Year of the Hospice.

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    New Listings 278

    Price Changes 88

    Sold Listings 112

    TI:13442

    http://www.laurenandpaul.ca

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    Anonymous Says:
    51

    bpom,

    not enough milk yet?

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    Best place on meth Says:
    52

    January numbers:

    2011 sales 1819, list 4801, ratio 38%

    2012 sales 1590 (-12.5%), list 5762 (+20%), ratio 28%

    Highest sales day this month was 123.

    Last January that would have been good for 5th place.

    Still no sign of HAM.

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    Not a good start but hey this market surprises as we all know! Rents are due tomorrow, as are mortgage payments ;)

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    why are humans so programmed to buy high and so fearful of buying low…except Buffet of course.

    once bitten twice shy I guess..

    http://www.cnbc.com/id/46206075

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    Jan-2012

    Total days 21

    Days elapsed so far 21

    Weekends / holidays 10

    Days missing 0

    Days remaining 0

    7 Day Moving Average: Sales 97

    7 Day Moving Average: Listings 236

    SALES

    Sales so far 1593

    Projection for rest of month (using 7day MA) 0

    Projected month end total 1593 +/- 0

    NEW LISTINGS

    Listings so far 5762

    Projection for rest of month (using 7day MA) 0

    Projected month end total 5762 +/- 0

    Sell-list so far 27.6%

    Projected month-end sell-list 27.6%

    MONTHS OF INVENTORY

    Inventory as of Jan 31, 2012 13442

    MoI at this sales pace 8.44

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    RippedtoShit Says:
    56

    'dis shit is falling apart bad.

    Meth, love the stats.

    sales down 12.5%, that is material…the spread between sales and listings is material.

    could by CNY related, guess we'll have to see what the coming weeks bring.

    they'll spin this story, this will not cause fear – yet….but the great unwashed are getting nervous, they don't know what to think, but a new thought is beginning to form in their underdeveloped hypothalamus.

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    RippedtoShit Says:
    57

    Rob, sales are down 13% year over year and listings way way up year over year…

    Prices are falling, no?

    Come on man, admit it – this could be the end. Are you reading the financial press – its hammer hammer hammer hammer on debt/housing bubble (or is it a balloon?).

    CMHC – I don’t think the ceiling gets raised without some mortgage rule changes. 25year amortizations and higher levels of income to debt coming?

    We live in interesting times. We had a BOOM. Now the other side of the coin will show itself.

    Fools and their money are eventually parted.

    Chimpman still things things are rosy. Here is a counterpoint to his koolaid bullshit.

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    ReadyToPop Says:
    58

    “Pure speculators are very difficult to quantify in the market and [are] not being captured in any typical market data,” OSFI says. “Additional work [is] needed here.”

    Bank watchdog targets condo speculators

    So can I ask then, how any of the "experts" in the media know for sure if it's a balloon, bubble or beach ball?

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    Anonymous Says:
    59

    @VHB:

    Would it be possible to see the projected month-end MOI stated as a range instead, please? (Lowest projected inventory / maximum projected sales) to (highest projected inventory / lowest projected sales)? Thanks.

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    Anonymous Says:
    60

    @Anonymous:

    Obviously that would be irrelevant on the last day of the month, like today, but you know what I mean :)

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    I'll add that

    Total Inventory (paulB's #s)

    Jan 31, 2011: 11255

    Jan 31, 2012: 13442 (+19.4%)

    Now look at the inventory graph submitted by b5baxter in the forum: Judging by the speed of inventory build-up, we have a realistic chance of breaking the Feb 2009 Total Inventory record, making Feb 2012 the highest TI in last 6+ years.

    http://vancouvercondo.info/forum/?bb_attachments=

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    Might be a dumb question, what does HAM stand for?

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    @VMD: Whatever else it might be, by a long shot it is the steepest climb of inventory on the graph.

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    @Peter: Hot Asian Money, which appears to have dried up this year relative to past years. That said, sales during Chinese New Year (CNY) may not be reflected in the figures quite yet, being as I expect there would be a lag. We'll see if lag turns in to laggard.

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    @JR: Cash sales probably would've appeared by now. As HAM can't use CMHC, their sales stats would appear faster.

    Like or Dislike: Thumb up 0 Thumb down 0

    This is one of those "patiently waiting behind the elderly Chinese ladies as they cautiously and meticulously pick through the carrots" kind of thread.

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    @Peter:

    http://bit.ly/zA67ln

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    @Best place on meth: Gosh you really are stupid aren't you? You're actually trying to defend that comment, one of your dumbest ever.

    In your righteous rage you chide homeowners for not taking advantage of a deal of a lifetime in Las Vegas, one you haven't taken advantage of yourself. Priceless. Only a blind bear like you doesn't see the problem there. Get out of the house man, see the world, you'll be happier and you'll probably make a little more money so you CAN take advantage of the LV deals.

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    Time flies, it's suddenly end of January.

    2012 VCI Price Prediction Contest entry ends Feb 1st @ 23:59 PST

    So far 5 contestants.

    For HPI category: compared to Dec 2012

    Me: -2.5% by end of Jun, -10% by year end

    The Ant: -0.45% by end of Jun, -2.8% by year end

    Jesse: +3% by end of Jun, -3.5% by year end

    604x: -5% by end of Jun, -8.4% by year end

    Absinthe: -1.5% by end of Jun, -11.5% by year end

    There are a total of 10 categories.

    Winner nets

    1. Bragging rights

    2. Bestowed the title "The Prophet"

    3. The prestigious VCI Golden Bear Award

    For the not-so-hardcore VCI members, feel free to drop your predictions for JUST the HPI category (mid year & year end) either here or in the forum. I'll add your predictions into the spreadsheet.. but the award only goes to those who predicted all 10 categories : )

    http://vancouvercondo.info/forum/topic/2012-vci-p

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    @VMD:

    typo. prediction is "compared to Dec 2011 HPI", not Dec 2012, of course.

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    Curiosity Says:
    71

    Quoting Devore's message:

    Devore Says:

    January 31st, 2012 at 12:00 pm

    Comment from unmentionable blog:

    Sherry Cooper: “more like a balloon than a bubble. While bubbles always burst, a balloon often deflates slowly in the absence of a ‘pin’.”

    DAVID LEREAH: “Balloons don’t burst. You can put air in a balloon and it can expand or you can deflate a balloon, where air comes out….But now air can come out of the balloon rather than the balloon popping.”

    Who knew Sherry Cooper would be our David Lereah.

    Check out the website below for famous quotes made when no one believed that US housing was going to bust:

    http://economicsofcontempt.blogspot.com/2008/07/o

    The phrases don't differ much from Cooper's quote but only time will tell………

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    @Troll: I thought meths comment was saying less about what great deals there are in LV and more about what appallingly bad deals there are here.

    Like or Dislike: Thumb up 0 Thumb down 0

    An interesting development: http://www.thestar.com/article/1124551–mortgage-

    I have a comment/question regarding CMHC and the housing market. Currently CMHC insures ~$550B and total Canadian mortgage market is ~%1100B, that means that ~50% of the mortgages issued need insurance. Does anyone know if this ratio has been changing over the years?

    (Note: I used some data from here: http://www.ratehub.ca/mortgage-statistics-canada – not sure how reliable it is)

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    @Curiosity: My kid just had a birthday party. I can assure you that balloons most definately DO burst and they do it a lot louder than bubbles do.

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    I like a net +150 as much as the next guy but what does it mean compared to previous years? Are we that much different than the last 2-4?

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    @McLovin: Closeish to 2011 where SFH prices went even higher. Closeish to 2008 when prices fell over 10%. I'm not seeing much predictive in recent numbers, though them's a lot o' listings!

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    @0×13:

    This may be big news! I'll post a part of that article you linked.

    [Self-employed, new immigrants may find getting a mortgage tougher]

    CIBC’s wholesale mortgage arm, FirstLine, quietly announced Tuesday that it will no longer accept new applications from “stated income” homebuyers who can’t prove they have the annual net income to qualify for home loans.

    FirstLine also set a $1 million cap on what it will lend for a home purchase.

    The major change in policy, which is bound to pique the interest of other major lenders, came on the same day it was revealed that the Canada Mortgage and Housing Corp. could be forced to cut back on the mortgages it insures.

    The moves are seen as among the clearest indications yet that Canada’s hot housing market and record levels of household debt are a concern far beyond just the Ottawa offices of Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney.

    That’s despite a Bank of Montreal report this week that says Canada’s housing market is more balloon than bubble and more likely to deflate than pop.

    “The signs are there that everyone is worried, with the exception of BMO. It’s not like there is just one person saying there is a problem with the housing market,” said Jason Friesen, a mortgage consultant with the Callum Ross Team.

    “It’s impossible to know, given all the doom and gloom in the rest of the world, what will happen over the next three months or the next six months, but lending institutions are looking for ways to protect themselves.”

    http://www.thestar.com/article/1124551–mortgage-

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    @Peter:

    Might be a dumb question, what does HAM stand for?

    HAM = Hosed Asian Morons

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    @VMD: Yes right on schedule, CMHC announces changes (of sorts) in the first 6 weeks of the year.

    Why is Firstline doing this? Part of it is to reduce their RWC and limits on available MI means they need to be more selective in loan originations.

    There are more signs afoot that 2012 is going to be special.

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    Buy fire insurance:

    http://canadianbs.blogspot.com/2012/02/buy-fire-i

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    Y'know, with all these official warnings flying around, it would be fun to collect all the tut-tutting and finger-waggling in one place.

    IMF: http://www.businessweek.com/news/2012-01-25/canad

    Office of the Superintendant of Financial Institutions: http://www.vancouversun.com/business/Looser+lendi

    FSB: http://www.theglobeandmail.com/report-on-business

    …and of course the constant bellowing from Carney and Flaherty. Anyone got others?

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    fixie guy Says:
    82

    78 Laibach Says: "HAM = Hosed Asian Morons"

    Maybe the late comers. The clever ones who pulled CMHC-backed payments out of the country over the bulk of the last decade were anything but morons.

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    jumpin in Says:
    83

    The BC real estate association will surely start the pumping about the average price.

    Where can we find info about the median?

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    jumpin in Says:
    84

    "I'm sure any kind of signal that might spook the housing market would be considered very prudently and at the same time, if there is any sign the market is starting to demonstrate signs it is going overboard it might want to find ways to cool it."

    http://www.huffingtonpost.ca/2012/02/01/cmhc-lend

    Notice the nice slide show at the bottom…

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    jumpin in Says:
    85

    Unbelievable!

    "Despite that, almost three-quarters of CMHC’s outstanding mortgage insurance is low-ratio (i.e., 20% equity or more). That’s largely because banks have been buying portfolio insurance in gobs to insure against defaults on low-risk conventional mortgages."

    More explanation at
    http://www.canadianmortgagetrends.com/canadian_mo

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    Anonymous Says:
    86

    @VMD: "CIBC’s wholesale mortgage arm, FirstLine, quietly announced Tuesday that it will no longer accept new applications from “stated income” homebuyers who can’t prove they have the annual net income to qualify for home loans."

    I love it when they make statements like this…then collective Canada all wonders, 'what the hell were they doing giving mortgages based on income they couldn't prove?'. Kind of like with CMHC said they're no longer insuring HELOC's.

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    This site has been posting housing bubble, housing bubble, housing bubble, housing bubble, housing bubble, housing bubble, housing bubble for so many years… still no housing bubble..lol

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