Should bank CEOs be worried about housing market?

Who should worry most about an overheated housing market?

Overstretched owners with big debt? Renters who want to buy? Government?

What about Bank CEOs?

TD CEO Ed Clark says that bank CEOs ‘should be worried’ about the Canadian housing market.

While he isn’t worried about a full-blown bust, Mr. Clark believes chief executives simply can’t ignore warning signs in the market – particularly the sudden run up in prices for real estate of all stripes. “If you run a bank, you should be worried about it,” he told the audience at a bank conference in Toronto.

Now if banks start to worry about insured mortgages, maybe the taxpayers insuring them should be worrying a bit too.

Of course other bank CEOs have said that there is no problem and lending has been prudent and restrained.

That article ends up with possibly the weirdest last paragraph of the year so far:

Mr. Clark’s comments Tuesday weren’t the first he’s made on the topic, but this time he went into more detail on how his bank is changing its behaviour.

“We’re saying ‘no’ lots of times” to potential real estate borrowers,” he said, some of whom are big, lucrative clients. Mr. Clark wouldn’t name names, but he noted that in one instance, Tim Hockey, the bank’s head of Canadian retail and commercial banking, was “virtually in tears” for having to turn the client down.

The austerity! it hurts!

Sort by:   newest | oldest | most voted
Sound Test Contractors
Guest
Sound Test Contractors

London wide Sound Testing Services provider. HIgh quality sound and air pressure testing.

everywhereyougo
Guest
everywhereyougo

@60 London! yeah I feel for you man. I did a facebook quiz and it said London would be my ideal city. After a couple visits I feel confident in declaring those results wrong! I’d be happy in Albufiera Portugal, rainy grey london can go take a flying fuck at the moon!

trackback

[…] skidding economy -Fear of the Looney -Blanket on head for driving -Debt ridden young flee BC -Inventory back to 2005 -Debt monster killing RRSPs -Canadians take on […]

George
Guest
George

I’m here in London England hoping to move to Vancouver. Its down 13% in our currency in the last year. Another 7% and I’m going to purchase.

20% is a healthy correction. Should happen in about a month or 2. Feel bad for the locals who only think in Canadian dollars.

Bill
Guest
Bill

Vancouver has suffered a 10 % correction. Another 10% and I’m buying! Can finally move back from LA…

southseacompany
Member
southseacompany

Financial Times; ‘Canada housing: On short notice”
“Record house prices and low interest rates have fuelled fears of a bubble that has excited hedge funds”

http://www.ft.com/intl/cms/s/0/5999161a-7ea1-11e3-8642-00144feabdc0.html#axzz2qdPbBBaO

“The US has been printing money since 2009 and it has helped set off a series of echo housing bubbles around the world – Canada is only one of the echo housing bubbles,” says Seth Daniels, founder of JKD Capital, who is advising a new short-focused fund in Toronto. “If the US tapers QE, it could set the process in reverse and trigger the collapse of these echo credit bubbles, including Canada.””

Son of Ponzi
Guest
Son of Ponzi

Johnny Boy,
Chinese Horoscope for 2014 predicts that the Fall will be a good time to sell.
So no Yellow helicopters this spring.

oneangryslav2
Guest
oneangryslav2

““I am surprised, however, that you were able to hear a car ad on 1040 given that their commercial breaks seem 100% dominated by home equity loan spots.”

Not true. Interspersed with the no money down cash-back car loans and home equity LOC’s are ample credit counselling ads!”

And don’t forget that the hosts are not above flogging condo developments from time to time, either.

Johnny-boy
Guest
Johnny-boy

The list /sales are going in the right direction. Lets hope Chinese New Year doesn’t bring another few planeloads of hot money to mop up our RE. Thinking we will need a good crisis in China for our correction to real get going.

alexcanuck
Member
alexcanuck

I am surprised, however, that you were able to hear a car ad on 1040 given that their commercial breaks seem 100% dominated by home equity loan spots.

Not true. Interspersed with the no money down cash-back car loans and home equity LOC’s are ample credit counselling ads!

Ford Prefect
Guest
Ford Prefect

An interesting post on Comox Valley CL describing a landlord’s costs of ownership vs. rental income and assorted other tribulations. I expect that most who dream of becoming landlords would be deterred by revelations such as this one.

http://comoxvalley.en.craigslist.ca/apa/4290747090.html

Brett
Guest
Brett

this one $650k for 3bdr in middle of nowhere in Summerland.
http://tinyurl.com/l8cmn7f

This has to come down at least 60% in order for me to justify buying as retirement pad.

gordholio
Member

#47, Mac: No jobs in the OK. Or at least very few. By the time we save up enough to hatch our nefarious plan, I figure prices in Summerland and area will have dropped to acceptable levels.

#49, oneangryslav2: Agreed that monthly payments are so yesterday. I’ve clearly shown my age. I am surprised, however, that you were able to hear a car ad on 1040 given that their commercial breaks seem 100% dominated by home equity loan spots.

paulb
Member

New Listings 234
Price Changes 34
Sold Listings 94
TI:12409

http://www.paulboenisch.com

oneangryslav2
Guest
oneangryslav2
@Gordholio #37: “But I know people who just wipe final costs from their vapid minds and instead concentrate on monthly payments…” Monthly payments, you say?!? That’s so 2009. If you’re not doing it bi-weekly, then you’re not doing it right, and your spouse may leave you for someone else. 😉 All of the commercials for car dealers that I’ve heard on Team1040 (local sports talk radio) mention bi-weekly payment amounts. I haven’t heard a monthly car payment amount in a couple of years. And that’s over 84 months. I remember about 10 years ago taking out a car loan over 3 years and I was almost too nervous to pull the trigger. And this was, as I’m conservative financially, for a used car which was a lease return (the owner ran into financial trouble one year after driving it off… Read more »
patriotz
Member

@39: “Seeing how money has repeatedly been splurged, exuberant benefits, parties (Olympics), god like wages, money just “vanishing”, no transparency, ad n a s e u m.”

You (I mean the impersonal “you”) get what you vote for. Or if you don’t vote, you get what you don’t vote for.

mac
Member
mac

Gorholio, get on with it man. You’re 50, I presume, get married and get the place you almost want in the OK. Prices have fallen enough. Take the plunge, man.

Opus
Guest
Opus

at the same time his wife got rid off perfectly fine sofa for brand new custom leather Nattuzzi sofa. thanks to Sears card of course.
and he traded (gave) away 6 year spotless Nissan for new 7 passenger SUV on 8 year payment terms. but $6 buck wings? Can’t afford it.

Opus
Guest
Opus

“And in the meantime, they’re squeezed so hard that they have to watch every freaking penny. Insanity.”

a friend of mine stopped coming for “boys night out” at Earls for Wednesday’s half price $6 Chicken Wings. Can afford it. $6 bucks!!!

Turkey
Guest
Turkey

…and Crawford Row is back! I’ve been watching these townhomes approach completion for a while. We’re up to 5 units on MLS at the moment.

For an exercise in sustained breathlessness, check out their twitter feed. My favourite:

One down, two to go! Unit 2 has an accepted offer! Act fast if you want to be a part of Crawford Row!

…if you look at the development’s history, it seems like this sale either never happened, or fell through. All three of the original units are still on the market.

tedeastside
Member
tedeastside

Vancouver doesn’t have big urban amenities, head office’s, big comapnies, industry, NBA MLB, Vancity has none of those

Son of Ponzi
Guest
Son of Ponzi

Rich people are really different.
“bare trusts” used to avoid property transfer tax.

http://www.andrewweavermla.ca/2014/01/15/bare-trust/

Snake
Guest
Snake
Snake
Guest
Snake
squeako
Guest
squeako

“Tax cheats beware: Tories launch snitch hotline”

And how about a hot line for mismanaged money by governments, for all levels. Report wasteful irresponsible spending and ignored needs.

Seeing how money has repeatedly been splurged, exuberant benefits, parties (Olympics), god like wages, money just “vanishing”, no transparency, ad n a s e u m.

If I managed my personal economy like that I would not even have a pot to piss in.