The worlds biggest bond fund seems to think there’s some sort of an issue with the Canadian real estate market.
Ed Devlin sees a decline somewhere in the range of 10-20 percent for home prices across the nation.
“And if you get that kind of 10-, 20-per-cent real correction, that should alleviate some of the stresses,” he added in an interview with our real estate reporter.
“And so that’s kind of what what we’re seeing. It will start this year, it could be bumpy along the way.”
To be clear, Mr. Devlin is not forecasting a sudden crash, but he joins a chorus of voices, from Deutsche Bank to the Organization for Economic Co-operation and Development, in raising red flags.
Deutsche Bank, for example, believes the Canadian housing market is the most overvalued in the world.
Read the full article here.
Somebody over at TD bank looked in their crystal ball and saw interest rates rising.
They say that a combination of factors including increasing supply, softening demand and the expectation of rising interest rates mean that home price across the nation are overvalued by about 10%.
It says markets such as Toronto, Vancouver, Montreal and Ottawa are likely more overvalued than markets in the Prairie and Atlantic regions, and will likely see more of an impact.
The national housing market and worries about a real estate bubble have been key concerns for policy-makers for several years.
Recent indicators have suggested the market may be headed for a soft landing instead of a bubble bursting, but concerns have persisted.
Full article here.
It’s the end of another work week and the start of another month! Hope you paid your rent and your mortgage bills and still have money in the bank.
The month of May wrapped up with higher than normal listings and lower than normal sales. We’ll have to wait to see what the official word is, but it sounds like we may see a bit of softening in some detached prices and little bump up in condo prices.
Let’s do 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:
–MOI 6.66, the MOI of the beast
–Inventory graph back into record high
–Teranet sales pair dries up
–Will bloggers ruin the perfect market?
–Okanagon sees huge foreclosure spike
–How much is your commute?
–Building jobs boom
–Van Commercial RE booms
–RBC: Ownership costs climbing
–Rising prices means confidence for Toronto
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!