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Old 01-30-2012, 08:46 AM
 
778 posts, read 1,461,077 times
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What happens when Canada’s housing bubble pops? - Econowatch - Macleans.ca "What happens when Canada’s housing bubble pops?"

Thoughts?

Last edited by sunshineleith; 01-30-2012 at 12:00 PM..
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Old 01-30-2012, 03:20 PM
 
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That article points out a few persuasive reasons to believe that Canada will avoid a real estate meltdown of US proportions (outside of Vancouver and Toronto at least). Even in the US, the housing bust hit some cities worse than others. I'm amazed at how long the housing run-up in values has gone on... house prices have risen pretty astronomically over the past 10 years.
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Old 01-30-2012, 04:29 PM
 
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Shouldn't this be in the "property" forums?
Anyways, there are several similar articles popping up all over .. Bloomberg & FP included.
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Old 01-31-2012, 01:06 PM
 
2,291 posts, read 3,936,908 times
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Quote:
Originally Posted by JohnVosilla View Post
What happens when Canada’s housing bubble pops? - Econowatch - Macleans.ca "What happens when Canada’s housing bubble pops?"

Thoughts?
My thoughts:

- What created the bubble in many US markets, and what made it burst?
- Are those conditions present in Canada?

If you know someone who has been able to finance 100% of his/her house without showing any proof of revenue, tell me about it. I don't know anybody like that.

What is the definition of a bubble? Prices have been rising in most Canada markets for an unusually long time but they are still relatively much lower than in most of Europe and Australia.
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Old 01-31-2012, 01:10 PM
 
Location: Fishers, IN
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Quote:
Originally Posted by barneyg View Post
If you know someone who has been able to finance 100% of his/her house without showing any proof of revenue, tell me about it. I don't know anybody like that.
Neither do I, and neither did most Americans purchase their homes in such a manner. The media has failed to mention the biggest culprit behind the housing crash in the U.S. -- people buying too much house relative to their budget. Has that happened in Canada?
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Old 02-01-2012, 12:19 AM
 
1,269 posts, read 3,418,112 times
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Quote:
Originally Posted by JohnVosilla View Post
What happens when Canada’s housing bubble pops? - Econowatch - Macleans.ca

Thoughts?
The writing is on the wall.


Quote:
CMHC curbs mortgage insurance offerings to banks
CBC News
Posted: Jan 31, 2012 (4:15 PM ET)

The federal housing agency is serving notice to banks and other lenders that it is nearing the limit on mortgage insurance it can offer them.
Quote:
Self-employed, new immigrants may find getting a mortgage tougher
The Star
Published On Wed Feb 01 2012

CIBC’s wholesale mortgage arm, FirstLine, quietly announced Tuesday that it will no longer accept new applications from “stated income” homebuyers who can’t prove they have the annual net income to qualify for home loans.

FirstLine also set a $1 million cap on what it will lend for a home purchase.

The major change in policy, which is bound to pique the interest of other major lenders, came on the same day it was revealed that the Canada Mortgage and Housing Corp. could be forced to cut back on the mortgages it insures.
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Old 02-02-2012, 01:42 PM
 
Location: Canada
63 posts, read 109,219 times
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Quote:
Originally Posted by JohnVosilla View Post
What happens when Canada’s housing bubble pops? - Econowatch - Macleans.ca "What happens when Canada’s housing bubble pops?"

Thoughts?

You have to understand that US house bubble pop was coupled with (or was the fuse for) with sub-prime mortgage crisis which made the whole situation much (much!) worse.

Canada's housing market is only experiencing something like "overheated economy" and in these cases bubble pops are inevitable and sometimes desired because thanks to them the overstimulated market can make new equilibriums and a "fresh start".
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Old 02-03-2012, 10:45 PM
 
Location: Calgary, AB
482 posts, read 2,159,625 times
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Quote:
Originally Posted by grmasterb View Post
Neither do I, and neither did most Americans purchase their homes in such a manner. The media has failed to mention the biggest culprit behind the housing crash in the U.S. -- people buying too much house relative to their budget. Has that happened in Canada?
These "no stated income" loans are available in Canada... They are geared towards small business owners and consultants.. CIBC I know for a fat does brisk business with them.

I have friends who got them.
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Old 02-04-2012, 03:56 PM
 
Location: Fishers, IN
6,495 posts, read 10,805,434 times
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Is the bubble near? Canada
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Old 02-06-2012, 10:31 PM
 
Location: Vancouver, BC
547 posts, read 1,404,183 times
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I doubt it'll burst. It didn't "burst" in '08 or '09. I don't see how 2012 is going to be worse than those years.
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