Oliver to continue current interventions in housing market

After the IMF issued yet another warning on the Canadian housing market Joe Oliver decided its time to speak up.

There is no housing bubble basically, but they will continue to keep an eye on the situation.

And yet the foreboding predictions keep coming. Goldman Sachs warned of a “large correction” in Canadian real estate in 2013. That same year, The Atlantic magazine called Canada “the biggest housing bubble in the world” and the OECD issued a report that listed Canada’s as one of the most overvalued housing markets in the world. Earlier this year Deutsche Bank said Canada was in “serious trouble” with its supposedly overinflated house prices. Capital Economics’ David Madani has been standing by his call for a “day of reckoning” for Canadian housing since 2011.

That no reckoning has come to pass yet may explain why Mr. Oliver and the Bank of Canada’s anxiety has cooled.

“In a way, it’s strange,” said Mr. Porter. “Because if anything the market does seem to have gotten a bit more overheated — especially in Toronto and Vancouver.”

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paulb
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New Listings 258
Price Changes 86
Sold Listings 190
TI:13146

http://www.paulboenisch.com

StupidityCheck
Guest
StupidityCheck

When someone’s job depends on a bubble, they will always deny its existence. Greenspan even said it was impossible to have a nationwide bubble.

history
Guest
history

http://www.archdaily.com/404803/ad-classics-habitat-67-moshe-safdie/

Moshe and Joe sitting in the Tree….
One of the interesting things about Expo 1967 was Habitat for Humanity. The reality of Expo 67, was if you made the trip to Montreal, accomodation was scarce and expensive, and the hoteliers greedy and uncooperative. Despite the best efforts of the organizers to house many of the quirky RoadTrippers that made Expo exceptional, there was a glaring dichotomy between pomp and circumstance.

vangrl
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vangrl
renters rule
Guest
renters rule
@ vangrl I grew up in West Van. My folks still live there, although they have already down-sized. Less than 10% of the people I went to high school with live in West Van now, as we got used to being priced out in the 1980s/90s (this cheap credit bubble is insane, the amount of debt wannabees are taking on, so not sustainable). Note though that West Van is “younger” by about a decade or maybe even two than Van West. Most old-timers in Van West have been long gone for 20 years I would say. The folks who still live in West Van, who are now being swarmed, will not roll over and take it up the *ss. Most of the influential people in this city live in West Van, many retired, many not. There will be a much… Read more »
Son of Ponzi
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Son of Ponzi

#5
are you implying that the old white farts are going to drive out HAM with pitch forks?

renters rule
Guest
renters rule
Not interested in race baiting. Not valid and nor relevant, except to perhaps your world view. That card is almost blank, it is so worn out from being been played so much. Thank gawd for Ian Young of SCMP as he is exposing Asians on their own in-fighting and racist sh*t. You can type whatever you want, you own your sh*t, not me. Canadians who are not “of convenience”, want responsible, participating, mutually respectful community members to continue building out this place called Canada, for ALL of our mutual happiness and benefit. That is not racist. THAT is what Canada is, and for those who will not play ball that way, yes, HELLO, expect pushback. We are all waking up. I believe West Van will use popular support, moral suasion and political connections — not pitchforks, but thanks for the… Read more »
88
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88

#5

They aren’t implementing the ban on monster homes because they don’t want the value of their homes to drop before they sell out.

Tiger
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Tiger

Look at this idiot try to rent the place for more anybody was willing to pay he sated out with $2900 now it is $2300 still no takers yet.

http://vancouver.craigslist.ca/search/van/apa?query=+uptown+in+the+exceptional+Mount+Pleasant+neighborhood%2C+

renters rule
Guest
renters rule

@#8 you have missed the point, quelle surprise (oh and by the way, that is francais, one of the two official languages of Canada).

Any restrictions or pushback is expected to LOWER prices, not raise them… but thanks for the subconscious messaging that swarms of monster homes in previously desirable neighbourhoods will likely reduce the general desirability of said neighbourhoods.

88
Guest
88

Anyways, speaking of crazy, this is the second time I’ve seen someone propose head tax online.

http://www.reddit.com/r/vancouver/comments/2yoya7/police_and_fire_dept_say_yes_transit_plebiscite/cpbve21

“We can’t tax our way out of systemic problems in this economy and even if we could there are plenty of better revenue streams like the taxing and legalization of marijuana, head tax/transfer payments at federal level, large stamp tax on out of country buyers, etc.”

realist
Member
realist

@ 5&7 renters rule
“Canadians who are not “of convenience”, want responsible, participating, mutually respectful community members to continue building out this place called Canada, for ALL of our mutual happiness and benefit. That is not racist. THAT is what Canada is,…”

I hope that you are right, but I am doubtful. The 0.1% elite, political correctness, post-Trudeau liberalism, free trade, and old-fashioned fecklessness and greed are potent opponents of your vision of Canada. West Van, meet your future: Van Westside.

dangit
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dangit

$8.5 Million, a $ 5 million and a $ 4 Chinese buys in West van FYI.

Canis
Guest
Canis

Jimmy P and the other most influential people in the city will reap what they have sown.

Tiger
Guest
Tiger

Anybody know how much this was sold for ?

203 – 1188 Quebec Street, Vancouver, BC(close to 1800 SQ)

http://www.6717000.com/v1105022-203-1188-quebec-st

southseacompany
Member
southseacompany

“Interest rate fears hang over markets, push down dollar”, CBC News

http://www.cbc.ca/news/business/interest-rate-fears-hang-over-markets-push-down-dollar-1.2990352

“Fears of a U.S. interest rate hike hung over the markets a day after steep stock selloffs, with the Canadian dollar pushed down by a strong greenback.”

“What’s causing all the worry is the divergent monetary policies by central banks in Canada, the U.S. and Europe.”

“The Bank of Canada cut interest rates in January in an effort to stimulate the Canadian economy…Meanwhile, the Fed appears to be heading in the opposite direction.”

southseacompany
Member
southseacompany

“Condominium boom fuelled by prices, low interest rates” Victoria times Colonist

http://www.timescolonist.com/business/condominium-boom-fuelled-by-prices-low-interest-rates-1.1788595

“Wendy and Barclay Taylor can’t wait to move into their new condominium in downtown Victoria”

“Said Eric Bond, CMHC senior market analyst. “New home construction in Victoria is being supported by a strong resale home market, declining inventories of completed and unsold homes, and a low mortgage interest rate environment.”

southseacompany
Member
southseacompany

From March 3rd, but I didn’t see posted;

“‘Almost all our wealth is in real estate’: Rising interest rates could devastate couple’s retirement” Financial Post

http://business.financialpost.com/2015/03/03/almost-all-our-wealth-is-in-real-estate-rising-interest-rates-could-devastate-retirement/

“In B.C.’s lower mainland, the Landarms (not their real names) — Warren, 37, and Betty, 35 — are betting that real estate will be the best investment they can make”

“If interest rates double in the next five years, they would accompany improving business conditions. Stocks would likely thrive, dividends would rise, and freshly issued government and corporate bonds would pay higher interest. But housing prices could stagnate or fall, since higher interest rates would mean that people could afford less house.”

southseacompany
Member
southseacompany

Got love this infomercial; “Lower interest rate is good news for real estate market” Inside Toronto.com

http://www.insidetoronto.com/shopping-story/5440601-lower-interest-rate-is-good-news-for-real-estate-market/

“When the governing bank of the country lowers its rates, it’s a perfect time for retail banks and other lenders to cut their own rates – which some banks took advantage of right away. Using the Key Team One mortgage calculator, we can see how much you’d save assuming the interest rate stayed the same throughout a 25-year amortization period.”

“These low rates may not last very long in a market that has historically seen prime bank lending rates as high as 22.75 per cent. Let The Key Team One find you the perfect property that suits your budget and your family’s needs!”

patriotz
Member

@11: “Anyways, speaking of crazy, this is the second time I’ve seen someone propose head tax online.”

Crazy is right, I would guess the poster doesn’t remember Thatcher’s attempt to impose a head tax in the UK. It’s as regressive as you can get.

Tax income and assets, not human beings.

patriotz
Member

@19:

“we can see how much you’d save assuming the interest rate stayed the same throughout a 25-year amortization period.”

“These low rates may not last very long”

That has to go into the Hall of Fame for the most glaring contradiction in a marketing spiel.

Let’s compute your ownership costs assuming you can get a 25 year fixed rate. Oh, but you can’t.

oneangryslav2
Guest
oneangryslav2
I’ve not been very active on these boards lately for two reasons, mostly. First, I’ve been very busy with work lately (and have been considering leaving for the good ole USandA. Second, as someone who lived through the US real estate meltdown, I was obviously too quick to call the bursting of our own RE bubble here in Canada. I’d say that I’m a chastened RE bear, but that would be putting it too mildly. I mean this RE bull market has taken us bears out to the woodshed and torn us asunder. I have to admit that as a person of some education and intellect (in matters both financial and non-financial) it is more than a bit humbling to have gotten it so wrong. This has led me to take a bemused half-interest in the daily vagaries of our… Read more »
Bo Xilai
Member
Bo Xilai

Ian Young continues great work exposing the Vancouver Real Estate Industry’s dirty secret… Tsur Sommerville is a bought and paid for real estate whore…

http://www.scmp.com/comment/blogs/article/1735460/vocal-academic-isnt-just-observer-vancouvers-real-estate-industry-hes

Oracle
Guest
Oracle

Thanks for the informative link Bo.

There is a concerted effort to keep foreign money inflows hidden from the general public.

We live in a fascist state now but many people unaware. Hopefully, as consumer prices rise with our lower dollar, people will have a wake up call.

Don Lapre
Member
Don Lapre

Come on everybody, I’m sure we can get it to 200% if we put our minds to it!!

http://business.financialpost.com/2015/03/12/canada-household-debt-ratio-hits-new-record-of-163-3/

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