CMHC tightens mortgage rules (again)

Ottawa must really want to see more of a downturn in the Canadian housing market.

This week saw a new limit to CMHC largesse. The latest change limits guarantees on Mortgage Backed Securities which will slightly increase lending costs.

In the financial post Mortgage Brokers and Bankers differ on their opinion of the latest move, some think it’s too much too soon, others think it’s a minor tweak that will have no real effect.

Doug Porter, chief economist with Bank of Montreal, wonders if housing statistics over the last couple of months showing sales and prices rebounding might have spooked the CMHC.

“I think this step is being taken because we have seen some signs in recent weeks that the market is not cooling as much as had been expected,” said Mr. Porter. “All the debate has been whether we will have a soft or hard landing and I would question whether the market had any landing whatsoever.”

Read the full article in the Financial Post.

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start up
start up
7 years ago

I just cannot leave your website before implying that i actually adored the regular details anyone present on your site visitors? Is actually destined to be backside regularly to look at innovative content

advcare
advcare
7 years ago

Reading this is compared to a inhale and exhale of oxygen for all those folks that happen to be always dealing with to get off of the chair.

logic
logic
7 years ago

fuck off, troll.

Amy Everpean
Amy Everpean
7 years ago

The real estate market in Calgary is booming right now! There are so many great deals on homes out there. I recently purchased a home with the help of http://chamberlaingroup.ca/ and it’s seriously been the best experience ever! I just love it there.

southseacompany
southseacompany
7 years ago

Now here’s a few nice headlines. Too bad these aren’t Van headlines.

“Unsold condos piling up in Toronto”
http://www.cbc.ca/news/business/story/2013/08/07/business-toronto-condo-market.html

“Sales of new condos plunge in Toronto: Is the market ‘normalizing’?”
http://www.thestar.com/business/2013/08/07/toronto_condo_market_normalizing_report_says.html

“Toronto new condo sales retreat as glut edges up”
http://globalnews.ca/news/767633/toronto-condo-sales-retreat-but-unsold-units-rise/

“Slumping Sales Have Developers Cutting Back on New Condos in Toronto”
http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-296368/

“Wha’ppen? Last weeks headlines claimed it was a burning July for sales?

RPM
RPM
7 years ago

Vancouver retailer opens up a store in Blaine, Washington so they can offer their customers cheaper prices in the US. They say their operating costs in Blaine are one-tenth their costs in Vancouver. Also, their dress suppliers force them to charge higher prices in Canada or stop carrying their brand. From the Vancouver Sun:

“Vancouver shop owner Boris Chenkis, exasperated by cross-border shopping, has begun fighting fire with fire. He’s cross-border retailing…

“But we were told by some Canadian distributors that we could not drop our prices … or the designer line would be taken away from us…

Chenkis has found the rent for his shop in Blaine is “very reasonable.” His operating costs are a tenth of what he pays in Vancouver.”

http://www.vancouversun.com/business/bc2035/Vancouver+dress+shop+owner+goes+fight+cross+border/8760509/story.html

Interest Only
Interest Only
7 years ago

@ Son of Ponzi

Yes good one.

If realtors do nothing to hype the market it will fall inline with incomes. If they attempt to save the sinking ship through hype, it attracts the attention of policy makers who in turn tighten further.

It is a lose lose game at this point.

Aggregator
Aggregator
7 years ago

Hey look, they’re making HAM the movie. http://blogs.wsj.com/scene/2013/08/07/crazy-rich-asians-to-become-movie/

This should be equivalent to what Rocky I did to Italians, only Asians will get all pumped-up and buy more houses.

Son of Ponzi
Son of Ponzi
7 years ago

New listings 241, Sold listings 104.
Ratio new/sold 2.4.
Yesterday it was 2.00.
And this is the sloooow summer.
Can’t wait for September when all the expired and cancelled listings will come on the market again.
My advise to sellers is: Better sell now at a lower price, or be stuck with your overpriced property forever!

HMS VANCOUVER
HMS VANCOUVER
7 years ago

From # 38 “By our calculations, home affordability at the national level has become the least favourable since November 2008.” That from National Bank. Spin that Realtards! This is the thing that no bulls seem to get, if people simply can’t afford to pay more prices can no longer go up. There is no magic fairy that will make prices go up just because they have in the past. For general prices to go up one of the following must happen: Interest rates must go down Real wages must go up Well we have likely since our lifetime lows on interest rates. The 2.79% 5 yr. is now a 3.39% 5 yr. and soon to be 4.00 5 yr. Real wages are actually declining slightly. Sorry Bulls but this market is cooked! The best you can possibility hope for is… Read more »

J-F
J-F
7 years ago

It’s good to tighten mortgage rules but at this point I doubt a it’ll make a huge difference… What we need is more transparency and data on foreign investment in RE and non-resident foreign RE purchases. The global wealthy investor class (a lot of which with shady sources of wealth) using RE as offshore cash storage is obviously at the very least keeping condo price from falling. More data is desperately needed on this phenomenon as well as serious restrictions on non-resident foreign ownership.

Take a walk in Coal Harbour at dawn if you don’t believe me.

paulb
7 years ago

New Listings 241
Price Changes 95
Sold Listings 104
TI:17563

http://www.paulboenisch.com

Best place on meth
Best place on meth
7 years ago

I see 3 months of flat prices.

Obviously that means they will continue to be flat for 17 more years until wages catch up.

Good job, Flaherty – your work here is done.

jesse
7 years ago

An interesting result of the persistently high inventory through 2013 is muted price gains. The best way of showing price changes is to pick the graph with the most seasonality attached so as to “spread” out the springtime differences and…
http://twitpic.com/d71qkn

Naked Official #9000
Naked Official #9000
7 years ago

#thisisadisaster Says:
August 7th, 2013 at 3:55 pm 56

“Too bad their professional REALTOR® didn’t know that when they overpriced it by 32%.”

Too bad you didn’t know the house, rather than the market, was overpriced by 32% when you made your comment.

—-

SILLY BEARS ARE CHERRY PICKING THEIR DATA AGAIN

cris
cris
7 years ago

“Pamela Anderson: In 2012, it was reported that the former Baywatch star was drowning in debt, allegedly owing $1.1 million to various construction companies for remodeling work on her Malibu home as well as back state taxes. And in February 2013, the New York Daily News reported that Pam had to put the beloved eco-friendly Malibu house up for sale for $7.75 million to keep herself afloat.”

I like the term “construction companies” here.

one migrant economy
one migrant economy
7 years ago

http://radaronline.com/photos/fame-and-sinking-fortune-55-stars-whove-lost-it-all/photo/538240/

“Pamela Anderson: In 2012, it was reported that the former Baywatch star was drowning in debt, allegedly owing $1.1 million to various construction companies for remodeling work on her Malibu home as well as back state taxes. And in February 2013, the New York Daily News reported that Pam had to put the beloved eco-friendly Malibu house up for sale for $7.75 million to keep herself afloat.”

#thisisadisaster
#thisisadisaster
7 years ago

Best place on meth Says:
August 7th, 2013 at 4:06 pm 58
“Great, another crybaby complaining about the site.”

Not complaining about the site, making fun of you. Methinks you may have a problem seeing the forest for the trees.

Best place on meth
Best place on meth
7 years ago

“Great one point data analysis of Burnaby. Let the up-voting begin!”

Great, another crybaby complaining about the site.

Let the childish whining begin.

UBC in Crisis Mode
UBC in Crisis Mode
7 years ago

Obama Zillow Interview

Full interview on Youtube: consumers’ questions:

http://www.youtube.com/watch?v=L-XbETvNBv0

#thisisadisaster
#thisisadisaster
7 years ago

“Too bad their professional REALTOR® didn’t know that when they overpriced it by 32%.”

Too bad you didn’t know the house, rather than the market, was overpriced by 32% when you made your comment.

Best place on meth
Best place on meth
7 years ago

“that area is not very popular”

Too bad their professional REALTOR® didn’t know that when they overpriced it by 32%.

#thisisadisaster
#thisisadisaster
7 years ago

Best place on meth Says:
August 7th, 2013 at 3:28 pm
Burnaby is hurting.

Great one point data analysis of Burnaby. Let the up-voting begin!

UBC in Crisis Mode
UBC in Crisis Mode
7 years ago

Obama praises Zillow in Zillow’s interview:

http://www.cnbc.com/id/100946724