Tag Archives: overvalued

Friday Free-for-all! April 29th 2016

You made it to the end of another work week!

And most of you are still living in Vancouver, which means you love it and find it worth the price. Good job!

With the weekend here it’s time for another Friday Free-for-all, our regular end of the week news link round up and open topic discussion thread for the weekend.  Here are a few links to kick off the chat:

CMHC: Many markets overvalued
Fed leaves rate flat
Donors top up Clarks’ salary
US Ownership rate falls to 48 year low
Who’s at the open house?
How is Comox?
How is Kelowna?
Danger in the bond market

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

Friday Free-for-all!

It’s that time of the week again!

Friday free-for-all time!

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:

How much is Canada overvalued?
More on debt levels
CMHC rates correction risk low
Raise taxes?
Everyone wants to live in… LA?
Poloz: no risk of bubble
Developer is corruption suspect?
What if you could only get 5 mortgages?
Yellens’ zombie economy

So what are you seeing out there?

Post your news links, thoughts and anecdotes here and have an excellent weekend!

Does the Bank of Canada Think Real Estate Buyers are Suckers?

Some of you are under the impression that Bank of Canada Governor Stephen Poloz does nothing but sit around all day eating Doritos and watching The West Wing on Netflix, but you are sadly mistaken.

He also issues reports that freak out Realtors.

Consumer debt loads and house prices that could be as much as 30 per cent overvalued are the two biggest risks to Canada’s economy, the Bank of Canada warned in its semi-annual Financial System Review on Wednesday.

Yeah, but “up to 30 percent” includes zero percent over-valued too you know? Surely not everyone is overpaying for Canadian real estate.

The bank says it’s about 95 per cent sure that house prices have been overvalued by an average of about 10 per cent since 2007. That’s based on a new forecasting model the bank says it created, which incorporates existing data from private banks and other government institutions.

Huh. 95% Sure? really? I bet it’s all a’cause of those wealthy foreigners right?

And a lot of those inflated house prices are coming at a cost of rising debt loads. About 12 per cent of Canadian households are considered to be extremely indebted — which means they have a debt-to-income ratio of at least 250 per cent. That ratio has doubled since 2000, the report notes.

Oh.

But that’s ok because younger buyers are building equity right?

Young homeowners, the bank added, have become even more vulnerable to negative shocks to income and to higher interest rates.

Wow. What a buzzkill.

*For those who followed the foreigner link we would like to offer our sincerest apologies.  If you are a glutton for punishment, here’s a video of our prime minister singing Guns n’ Roses “Sweet Child o’ Mine“. If you watch the whole thing you earn a cookie! If you cut it off at 3:33 you have to go to work at a Tim Hortons in Fort Mac. You have been warned.

 

FFFA! Affordability, Overpriced, Comparisons

It’s that time of the week again!  This time, we’re going to use the assistance of commentor Snake who posted most of these links.

Thanks Snake and everyone else who contributed links.

But as a general reminder, if you post more than one or two links your comment will get held up in moderation. Inconvenient yes, but better than getting inundated with spam links.

Ok! On to the links:

Most Over And Undervalued Markets
Market overvalued, but crash worries ease
7 Remarkable Numbers From Canada’s Housing Market
Carney To Stop Mortgage Funding Scheme
Housing Bubble? Canada’s Top Banking Regulator Refuses To Say
Vancouver Real Estate Canada’s Least Affordable: Report
How much house can you handle?
Home affordability worsens, new report shows
The Chase: Toronto couple’s search for a $650,000 house
Goldman Sachs recommends shorting CAD$
Babies ‘R’ Expensive
Angry in Whistler

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