While some Canadian cities offer reasonable affordability compared to household incomes, Vancouver’s housing is, by any measure, highly overvalued and vulnerable to a sharp correction. Prices have risen 55% from their 2009 trough to a level 29% above their prior peak. The average home price reached nearly C$800,000 (according to CMHC).
Yeah you can believe whatever you want, but the truth is that there is still quite a big housing bubble. Vancouver is still listed as one of the most dangerous places to invest in real estate and I don´t see any chance of returning to the normal state without significant burst. Toronto is maybe doing a bit better, but to call it balloon instead of bubble isn´t really smart. Calgary and Alberta Real Estate Market are just slowing down after quite an increase in the last quarter of 2011, but their housing market is far from bubble. The prices are quite stable and the increases in home sales were steady last year. The debt level of Canadian households is one of the biggest and there are growing numbers of retiring people. This does´t make a good prospect for upcoming years,… Read more »
@patriotz Do you mean recognizing dual citizenship or allowing dual citizenship? To clarify, I think they will try to put restrictions on dual citizens who do not reside in Canada. For example, your citizenship may expire if you live out of the country for a number of years, or there may be increased tax implications. I am interested in this as I am a dual citizen with the US and I was living there during the Lebanon evacuation so I remember the news stories on these issues at the time. There were grumbles cheapening the value of citizenship, etc. As it was at the time, all I had to do was file a statement of non-residency to avoid tax implications while living in the US. When I returned, I simply had to inform them I was back and now I… Read more »
She sounds like she is 100 yr old… but obviously invested a lot of her money into cosmic surgery
Great news: we are now in a balloon. They are harder to pop than bubbles, but they make a lot more noise!
What an idiot! And Garth says she is trying to sell her 3 million $ house. What an unbiased "study"…
What I found most interesting was the reason for the huge surge in CHMC volumes was the bank’s were taking it out even when there was a high down payment and paying the premiums themselves.
This would of course allow the banks to make loans to anybody with no risk with the taxpayer on the hook.
I am not sure this is what they had in mind when they made the program.
@SunBlaster: …Now with CONservative government in majority, get ready for supersonic speeds in wealth transfer,..
Yes, you're in luck: they will be pushing additional funding for crop circles and tinfoil hats.
@oneangryslav2: That’s CMHC insurance in force as of the end of the calendar year.
@oneangryslav2: More searching turned this up:
Year Insurance in Force (Billions)
@oneangryslav2: Well, according to this link, this was the situation as of 31 December 2005.
At 31 December 2005, the value of the insurance policies in force was more than $273 billion
So they've more than doubled the level of issuance in six years.
Does anybody have a link that provides numbers for historical levels (in constant dollars) of mortgages insured by the CHMC? I’d like to chart that by house price to show to an especially obnoxious acquaintance.
Wonder what happens when cmhc exceeds its 600B cap…
Also would be interesting to know if cmhc tracks its total exposure live or quarterly…
Ahhhh. Back to business as usual, as I knew it would be. Early January numbers always have low/unpredictable sales and are basically meaningless.
Thanks for the laugh again this year gents. See you next Jan for the same "Oh its crashing……doh" game again. Never gets old.
Lather, rinse, repeat