Tag Archives: boom

Friday Free-for-all!

It’s the end of another work week and that means it’s time for another Friday Free-for-all!

This is our standard end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Surprise! No Rate Increase.
Alberta down, who’s next?
Always running out of land
Global boom continues
Hamilton prices see biggest jump
Van RE stranger than fiction
Actual reporting happening
Paul is back with the numbers!

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

How to prepare for a housing bust

Garry Marr writes about the situation in Alberta over in the Financial Post. The drop in oil prices has hit their economy first and hardest with sales down by 30-40% over a year ago and growing listings.

So how do you prepare for a surprise economic hit like that?

Simple. Save up to cover for job loss, keep your debts and bills manageable and  don’t get into a situation where you have to sell when everyone else is selling.

Unfortunately Canadians aren’t doing so well on the debt front:

Debt reached an all-time high in the fourth quarter, relative to income. Statistics Canada says the debt to disposable household income ratio is 163.3%, much of it attributable to housing costs.

Read the full article here.

FFFA! Bubble, Oil, Toil

You made it to the weekend!

And that means its time for another Friday Free-for-all! This is our regular end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

End of the boom?
A look at bankruptcy and foreclosure
Alberta anxious over dropping oil
HAM or BCM?
Prices wont go up or fall

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

FFFA! It’s Friday again!

Well well, look at that, you made it to the end of another work week.

This is Friday and that means it’s time for another Friday Free-for-all, our regular end of the week news round up and open topic discussion thread for the the weekend.

Here are a few recent links to kick of the chat:

Can the industry police itself?
Ultimate buy / rent calculator
Boom a bust for heritage buildings
Canada job market not quite best
Leaving the city for better economics
Tiny homes
Is the worst over for Looney?

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Canada: the worlds biggest housing bubble?

Are we the home of the worlds biggest housing bubble?

That’s what they’re saying over at the Atlantic.

How real is Canada’s housing bubble anyway? More real than any other country’s.

 

As realtors like to remind us, every market’s different, but there are three big takeaways here.
1) Rich Chinese buyers tend to make for overheated markets. Some of the priciest housing markets in the world have one thing in common, besides low-interest rates (which prevail most everywhere): Chinese expats. Vancouver, Hong Kong, Singapore, and Sydney are among the most popular destinations for wealthy Chinese looking to hedge their bets, and this exit-strategy buying has helped push prices in these locales into the stratosphere.
2) Housing busts can take awhile. After a decade of boom and bust, prices are back to fair value, below it actually, in the U.S. and Ireland, but still have a way to come down in Spain and Britain. Zombie banks tend to be reluctant to realize losses on bad loans, propping up prices in the process, but eventually reality has its day. The sooner that happens, the sooner housing, and construction, can come back.
3) Housing recoveries can take even longer. It was just 20 years ago that the land below the Imperial Palace in Tokyo was supposed to be worth more than all of the land in California combined. But beware the enduring costs of bad macro policy. Too tight money for too long has kept housing prices in hibernation decades on.