IMF issues fresh warning on Canada housing market

Apparently it’s not just the Bank of Canada that thinks Canadian RE buyers are suckers. The IMF is issuing yet another warning of potential problems in the Canadian Real Estate Market.

The International Monetary Fund is raising red flags about Canada’s housing market, warning that moves by Ottawa in recent years to tighten mortgage lending standards and boost oversight of the country’s financial system haven’t gone far enough.

Household debt levels remain well above those in other Western countries, the organization said in a commentary posted to its website Monday. Home prices have jumped 60 per cent in the past 15 years and remain overvalued from 7 per cent to 20 per cent, in line for a “soft landing” over the next few years, the IMF said.

At the same time, it reiterated its call for Canada to collect more data on its housing market and to centralize oversight of the financial sector. As it stands, regulation remains fractured among the Department of Finance, the Office of the Superintendent of Financial Institutions, the Canada Mortgage and Housing Corporation and provincial governments all playing separate roles in regulating the housing the market.

Read the full article in the Globe and Mail.

Sort by:   newest | oldest | most voted
Zero Down Forty
Guest
Zero Down Forty

@#22 Yes, on a day when the IMF warns, once again, that all of Canada’s housing market is overvalued due to low interest rates and CMHC policies, what do we see in our local papers? Any mention of the IMF? Interest rates? CMHC?

No. just; “Spring Comes Early to Hot Housing Market’, “Hopping with Chinese Money, “Draw Buyers with China” Article after article.

space889
Guest
space889

Most expensive Vancouver home sold!

http://www.vancitybuzz.com/2015/03/point-grey-mansion-sells-51-million/

Cha Ching! To the seller.

Zero Down Forty
Guest
Zero Down Forty

IMF story covered by;

Financial Post
CTV News
Global National News
BNN
CBC National
Huffington Post
Yahoo Finance

But, at the Van Sun/Province;

“Boss, should we run that story that came over the wire about the IMF warning on Canada’s overvalued housing?”

“Nah, but, run that story about our hot spring market and throw in a few others about some wealthy Chinese buying a home. And make sure you get some quotes from a couple of realtors. Our advertisers will like that”

crikey
Guest
crikey
A whirlwind tour of international policies on foreign land ownership, below. Many countries are left off the list — feel free to add any information you might have (e.g., Russia, middle eastern countries, etc). Pop quiz! Can you spot the only country in the list below which doesn’t care at all about social and economic upheaval caused by foreign, non-resident, ownership of property? Asia (general) “Restrictions for international buyers looking to purchase property in the Asia-Pacific region are unlikely to be lifted in the near future, according to Knight Frank’s latest review of property markets in the area.” “…policies make it difficult for overseas buyers and land in a number of countries is seen as sacred and not something that can be given over to foreign owners.” SINGAPORE: “In Singapore, foreign purchasers are permitted to access to the private non… Read more »
crikey
Guest
crikey
[Resposting without links] A whirlwind tour of international policies on foreign land ownership, below. Many countries are left off the list — feel free to add any information you might have (e.g., Russia, middle eastern countries, etc). Pop quiz! Can you spot the only country in the list below which doesn’t care at all about social and economic upheaval caused by foreign, non-resident, ownership of property? Asia (general) “Restrictions for international buyers looking to purchase property in the Asia-Pacific region are unlikely to be lifted in the near future, according to Knight Frank’s latest review of property markets in the area.” “…policies make it difficult for overseas buyers and land in a number of countries is seen as sacred and not something that can be given over to foreign owners.” SINGAPORE: “In Singapore, foreign purchasers are permitted to access to… Read more »
Oracle
Guest
Oracle

GT censoring the sale of the $51 Million dollar house to a person from mainland China.

What a fake that blog is. Tries to hide facts.

Yunak
Guest
Yunak

“Nah, but, run that story about our hot spring market and throw in a few others about some wealthy Chinese buying a home. And make sure you get some quotes from a couple of realtors. Our advertisers will like that”

Absolutely same crap but on different topic was pulled by some European dictators during the wars 20 years ago. However orchestrated and fake journalism didn’t save them, eventually they got fucked up a big time and died in obscurity in prisons.

southseacompany
Member
southseacompany

“Canada’s Oliver say there is no housing bubble”, Reuters, Tues Mar 10, 2015

http://ca.reuters.com/article/businessNews/idCAKBN0M623120150310

“Canadian Finance Minister Joe Oliver on Tuesday told Parliament that there was no housing bubble and added that he continued to monitor the market very closely.

The government and the Bank of Canada have repeatedly predicted a soft landing for a housing market which boomed in the wake of the financial crisis, spurred by record low borrowing costs.”

southseacompany
Member
southseacompany

“Poloz’s rate cut the wrong move at the wrong time”, Globe & Mail

http://www.theglobeandmail.com/report-on-business/economy/polozs-rate-cut-the-wrong-move-at-the-wrong-time/article23394572/

“When we look at recent monetary policy around the globe, there appears to have been a competition between many countries to devalue their own currency as the main mechanism to stimulate the growth of their own economy at the expense of others.”

“More importantly, the rate cut will only further fuel the overextended housing rally and private debt consumption. Over the past several years, the Bank of Canada has been obsessed with lowering consumer debt accumulation. The rate cut goes completely against this astute strategy and blatantly encourages more consumer debt.”

Re-diculous
Member
Re-diculous

@31 Incredible…Joe Oliver makes me really miss Jim Flaherty….who would have thought?

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

what has more impact on your life?

what chinese people buy with their money?

or

what the IMF writes in a report?

now tell me again why the media is wrong for ignoring the IMF.

space889
Guest
space889

@Mortgageslave – I sense much anger and darkness in you, young apprentice of BPOM.

space889
Guest
space889

@southseacompany – We have a federal election coming soon and the Cons want to make sure nothing rocks the economic boat cuz that’s what people in the end really cares about. Terrorism is getting up there with the domestic terror cases and Cons are using those opportunities to blast Liberal and NDP and anyone who tries to be reasonable and stand up for private rights, and stripping away ours.

It is simple as that. Anything else is secondary to getting elected or the blame game if they lose.

Best place on meth
Member
Best place on meth
The IMF doesn’t know shit. The facts on the ground show a market being fueled by ultra-cheap debt and unlimited flows of dirty money coming into the country. I’ve had a look at individual sales from the past month and half the detached sales on the east side are going over asking, some 20% over while the rest go for merely asking. There’s hardly anything left to buy. The west side, while not quite as hot is pretty steady with most sales going for asking or just slightly under. It’s a mistake to think that offshore money only affects the high end of the market. Every longtime west side homeowner who cashes out for a ridiculous profit can then buy a similar house on the east side and have over a million left for retirement. That seller on the east… Read more »
space889
Guest
space889

@BPOM – who’s the realturd now? How would you have access the sold info to all the Van East sales unless you are a realturd yourself? Or paid for a title search for every single?

Don’t tell me some realturd friend simply gave you this info for free?! Unless off course you were threatening him/her with physical harm, that I would believe.

BPOM – realturd and homeowner wannabe exposed.

space889
Guest
space889

Joe Oliver re-iterates there is no housing bubble in Canada and that he monitors the market closely.

https://ca.finance.yahoo.com/news/canadas-oliver-no-housing-bubble-185450593–finance.html

Someone should send him an email about this blog cuz he’s obviously not reading this!

patriotz
Member
@28: ““Australia’s policy of allowing foreign purchasers into the new build or land market, so as not to crowd out domestic purchasers in the resale or secondary market” No, it just crowds out locals from the new build market. Since new builds and existing properties are substitutes the overall demand is the same, and the effect on prices is the same as if they were allowed to buy any property. Suppose for example foreign buyers were only allowed to buy properties with a street address ending in “1”. Same net effect. I’m sure the Oz government has figured this out, since they would not have a RE bubble bigger than Canada’s if they didn’t want one. “Foreign ownership, non-resident restrictions? Bwahahaha!” PEI has them. But unlike BC, they understand that some things are more important than money. Note also that… Read more »
Yunak
Guest
Yunak

BPOM – realturd and homeowner wannabe exposed.

space889, what an idiot you are. At work I have stupid but stubborn Chinese guy who thinks that he is smart but actually totally useless. I’m tempted to ask him if he posts under space889 on a local RE blog. You guys are amazing, like pests but with opinion.

faneur
Guest
faneur

#15, LS in Arbutus Says: “China’s in a serious credit bubble as well. Could be VERY interesting.”
Thing is, they’ve already lost sight of $637.42 billion through overseas branches of their state-owned enterprises. The missing funds have ended up in the pockets of private individuals.
http://tinyurl.com/n4h95df

Zero Down Forty
Guest
Zero Down Forty

@#34 What affects me most is the fact that Canadians are allowed to borrow twice as much as they did 15 years ago to buy a home, and that the resultant $1.2 trillion that has been released into the housing market in the last 15 years, and the speculative mania that accompanied it, has doubled to tripled prices all over Canada.

ostritch
Member
ostritch

How much longer until we see political discussion on using Vancouver as a store of Chinese money? Or is it never?

patriotz
Member

@44:

Wasn’t that (extended to the whole province) pretty much Christy Clark’s platform for the last election?

BC got what it voted for.

condo_day_ftw
Guest
condo_day_ftw

Speculative real estate is falling: https://pbs.twimg.com/media/B_xJhqwUwAA6aLU.jpg:large
(Trump tower this afternoon)

Whistler or bust?
Guest
Whistler or bust?

Its too late to do anything now. Sadly Vancouver is ruined forever.

ChinaOne
Guest
ChinaOne

More my cousin come and buy house with money.

Majority here homeowners so they want more price increase.

My cousin will be majority in Vancouver one day. 2040? Then we will vote to be a special economic zone for Asians like Singapore.

Maybe even allow Dual citizenship for China and Canada.

We be majority and we make law. My cousin come. I’m happy.