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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.
- 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.
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?
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.
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".
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 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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