Carney cries wolf again.. will it come?

Mark Carney is making new remarks about some Canadian real estate markets being “probably overvalued“.

It was the second time in recent days that Bank of Canada Governor Mark Carney voiced concern about property prices, which surged after the financial crisis as borrowing costs tumbled.
“We see that in a number of real estate markets in Canada, valuations are at a minimum, firm; in others, they’re probably overvalued. So there are risks there. We’re watching it closely. We’re working with our partners, the federal government, the superintendent of financial institutions,” he said in an interview on “Question Period” on CTV.

“Measures have been taken. They’ve been effective. We’ll keep up that vigilance. If more needs to be done, I’m sure the appropriate authorities will take those measures.”
The federal government has tightened mortgage regulations several times in a bid to prevent a property bubble from forming. Finance Minister Jim Flaherty said on January 17 that the government is watching the housing market closely and is ready to intervene if needed, but is not about to do so now.

Yes, the federal government has tightened mortgage regulations “several times”.. Here’s a timeline of those changes courtesy of Burbs Boy:

Jan 2006 – Minority Conservative Government elected
Feb 2006 – 25 year increase to 30 year on test basis
Jul 2006 – 30 year test affirmed and also increased to 35 year
Jul 2007 – 35 year increase to 40 year
Oct 2008 – 40 year decrease to 35 year
Mar 2010 – 35 year decrease to current 30 year

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VMD
Member
In other government news: [Government belt tightening could eliminate 60,000 jobs: study] Mon, 1/23/2012 – I wish no one would suffer the shock of job loss… but it seems like CMHC may also be on the chopping board.. “More than 60,000 jobs are guaranteed to disappear somewhere in Canada,” Macdonald wrote. Macdonald predicts many of the job cuts will make it more difficult for such vulnerable Canadians as aboriginal peoples and low-income earners to access government services. … The plan, which is designed to trim government spending by $4 billion, will be unveiled in Finance Minister Jim Flaherty’s budget, expected in February or March. However, the process has been cloaked in such secrecy that even many top civil servants have been left in the dark. …In scenario two, Macdonald looks at what would happen if the government tries to get… Read more »
VMD
Member

Oh by the way, Happy Lunar New Year!

Jan 22 – Jan 29 is China's official Stat holiday for Chinese New Year. Will it live up to our media's lofty expectations…?

Anonymous
Guest
Anonymous

WTF is this supposed to mean?

"Measures have been taken. They’ve been effective. We’ll keep up that vigilance. If more needs to be done, I’m sure the appropriate authorities will take those measures."

What measures have been taken? What measures will be taken? I am thinking barn and horse if he talking preventing a collapse or is he thinking of some type of measure similar to the US where they bail out the banks after?

registered
Member
registered

The Harper government is using the current environment – which as a small, resource rich country we should sail through had our economy not been actively mismanaged – as justification to start dismantling social services? Who could have predicted that? Cutting health, heritage, agriculture and the Harper-critical CBC should fix the mess they made with housing.

At least the trains run on time.

Apocarypse Mao
Guest
Apocarypse Mao

"Savvy buyers from Asia find B.C. attractive. Many parents find purchasing a home for students makes sense" Van Sun Jan 23/12

Lot's of weasel words here:

"Experts say…." no mention of who these experts are.

"Chinese… will most definitely push the demands in Vancouver's real estate market up to new heights in the coming year of 2012." No stats, data, or sources cites cited.

"Many Chinese parents… are sending their children to study overseas in Canada" How many? Stats?

"Many Chinese parents have chosen to purchase properties… in providing a stable home for the children" How many?

Oh yeah and the byline is:"Submitted by the BC Real Estate Convention"

Frustrating that these 'submitted' (and sloppy) articles get printed so easily.

SunBlaster
Guest
SunBlaster

Canadians will get what they voted for, so please don't complain!

Last time I checked the voting count majority didn't care about their social services, as long as the bubble keeps inflating!

Apocarypse Mao
Guest
Apocarypse Mao
TPFKAA
Guest
TPFKAA

24 hours of today says that Chinese mainlanders on a new year's visit will increase sales for rest of month. Tsur Somerville and Maddox development sales manager cited. They say it's been the trend for years. (Sorry not verbatim but I have the report second hand from someone. If anyone has the paper maybe they could chime in).

I thought we just agreed there has been no statistically significant CNY impact on sales at all??

Great article, guaranteed to increase listings. I had no idea the bears had so many secret agents in the bull camp. Tsur is proving to be a most effective mole.

TPFKAA
Guest
TPFKAA
Best place on meth
Member
Best place on meth

Gung Hay Fat Choy everyone!

And remember, there is no year of the bear in the Chinese calendar because real estate never goes down. 🙂

TPFKAA
Guest
TPFKAA

@TPFKAA:

"Julia Rowell, sales manager at downtown Vancouver’s Maddox development, said this phenomenon has been going on for over 25 years, but 2012 looks to be especially busy."

HAHAHAHAHA! That's absolutely hilarious!!

So in 1987, (a full five years before Deng Xiaoping's reforms that enabled creation of individual fortunes) HAM from mainland China was increasing sales just after CNY.

/facepalm.

coastal
Guest
coastal

Carney is trying to send the message as calmly as possible saying the US will never recover and if you own too much house and debt : you are screwed.

With the US Treasury bond auctions down big last week, the signs are pointing to the inevitable, that higher interest rates are a given to attract debt buyers. May not happen til the fall or year end but Carney knows it's coming and when it does it is going to get ugly.

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Anonymous
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Anonymous

@fixie guy: "as justification to start dismantling social services? Who could have predicted that?"

We know you predicted it. Still waiting 6 years into the Harper government.

registered
Member
registered

14 DEFAULT NAME Says: " Still waiting 6 years into the Harper government."

Your wait is over. Let me help you read:

"Macdonald predicts many of the job cuts will make it more difficult for such vulnerable Canadians as aboriginal peoples and low-income earners to access government services."

"Among those who could also see millions of dollars worth of cuts under that scenario are the Canadian Mortgage and Housing Corporation (CMHC), Health Canada, the CBC, Agriculture and Agrifood Canada and the Department of Canadian Heritage.."

Meh
Guest
Meh

@TPFKAA: I have to wonder if Julia Rowell was even alive 25 years ago. Some hack told her some BS and she believes its. Probably a kid who got her sales job for her looks, not brains.

Meh
Guest
Meh

@Meh: Also, note Julia Rowell is probably not Asian, unless she married a white guy. Would a real Chinese person say this crap? I bet not.

NoCondo
Guest
NoCondo

Toronto's FML LISTINGS:

http://fmlistings.tumblr.com/

someone needs to start one for Vancouver — i'm sure an equivalent tumblr for this market would be chocked full of greater insanity. actually, this kind of brings back memories of Vancouver (Un)Real Estate — that blog had some posts like this.

Patient renter
Guest
Patient renter

@TPFKAA

Seems to me that they're counting their chickens….

http://finance.fortune.cnn.com/2012/01/23/china-r

patriotz
Member

@Best place on meth:

"Gung Hay Fat Choy everyone!"

That's so Hong Kong.

gōng xǐ fā cái 🙂

vangrl
Member
vangrl

"Gung Hay Fat Choy everyone!

And remember, there is no year of the bear in the Chinese calendar because real estate never goes down"

time to build some more hospices

Best place on meth
Member
Best place on meth

I heard on the radio this morning that Weststone Properties is giving away a new car with the purchase of a new condo in Langley.

But for a limited time only. 🙂

specialfx3000
Member
specialfx3000

@Best place on meth:

"But for a limited time only"

I think the limited time offer means that in a few months, if the crap still sits unsold, they will also give you a bike, a canoe, and maybe some Mac&Cheese coupons.

jesse
Member

@TPFKAA: "I thought we just agreed there has been no statistically significant CNY impact on sales at all"

If they are claiming that sales after CNY are greater than before, well, of course they are because CNY takes place near the beginning of the year, in the winter, when sales are seasonally slow anyways. Full marks for correlation, part marks for causality. Certainly not a line of thought I'd include in a dissertation without more careful reasoning and analysis.

jesse
Member

新年快樂! 恭禧發財

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