Category Archives: data

Canadians are most likely non-resident speculators in the US

The National Association of Realtors (NAR) in the US has just released data on foreign buyers. Noticeably missing from the top five list is China, but at the very top of the top 5 US markets there’s one country: Canada.

That’s right, Canadians are the most likely foreign buyer in the US.

NAR stats show that Canadian and UK buyers are the most likely to buy property for occasional use. Going back to 2016, 80% of Canadian, and 61% of UK buyers were non-resident buyers. To contrast, only 39% of Chinese buyers were non-resident. This means Canadian and UK citizens are more likely to buy property and not move into it. Whereas 61% of Chinese buyers are likely to buy property for relocation.

To understand how impressive this statistic is, you have to look at the relative number of people. China has over 1.317 billion people, and Chinese citizens purchased 29,195 US homes in 2016. That results in 11,386 US homes sold to Chinese citizens for investment or occasional use. To contrast, Canada has 35.85 million people, and Canadian citizens bought 26,851 US homes in 2016. Since 80% of Canadians are non-resident, that’s 21,480 homes for investment or occasional use bought by Canadians just last year.

You should be ashamed of yourselves.

Read the full article here.

the $200 margin of error

This is hard to believe, but apparently more than half of all Canadians are just $200 away from not being able to pay their bills.

“With such a small amount of wiggle room, any kind of unanticipated hardship, such as a job loss or even a car repair, could send an already struggling family into financial despair,” said Grant Bazian, president of MNP’s personal insolvency practice, which is one of the largest in Canada.

For 10 per cent of Canadians, the margin of error when it comes to household finances is even thinner, at $100 or less.

But those with anything at all left at the end of the month were in better shape than many: A whopping 31 per cent of respondents said they already don’t make enough to meet all their financial obligations.

Then there’s this little detail:

Another hair-raising finding from the survey: Roughly 60 per cent said they don’t have a firm grasp of how interest rates affect debt repayments.

The statistic helps explain why many indebted Canadians end up taking on more debt and high-cost loans, said Bazian. “That’s how so many end up in an endless cycle of debt,” he noted.

Shouldn’t be a problem, interest rates are low forever now aren’t they?

Read the full article over at Global News.

We’re all super-high on housing

From southseacompany, confidence in the Canadian housing market has reached a record high:

“The experts are getting louder in their warnings that a housing bubble has formed in some parts of Canada, but Canadians don’t seem worried.”

“In fact, confidence in the housing market hit a record high in the latest weekly Bloomberg-Nanos index — even as respondents turned negative on their own personal finances.”

“The survey found 48.5 per cent of Canadians expect house prices to rise in the next six months, the highest level recorded in the survey since 2008. Fewer than 11 per cent expect to see house prices decrease.”

Read the full article over at Huffington Post.

Friday Free-for-all! April 21, 2017

It’s the end of another glorious work-week in the ‘couve and that means it’s time for another fabulous Friday free-for-all!

This is our standard run-on-the-mill end of the week news round up and open topic discussion thread for the weekend, here are a few links to kick off the chat:

Richmond Air BnB RIP
Vancouver sees first price increase in 8 months
Should first-timers rethink buying in a hot market?
Canada shadow banking half the size of banks
Ontario starts tracking residency for RE purchases
Define ‘foreign buyer denier’
Site C losses up to $1 billion?
Who would benefit from a crash?
44% like idea of 30% tax on foreign buyers

So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments section below and have a superb weekend!