Canada’s Arguably Top Economist Says there’s No Housing Bubble
Throw a stick out into the crowd of Canadian economists, and you’ll likely hit at least a few that have been saying that Canada is currently in a housing bubble. And while you can go back and forth with this argument, there’s one economist that says we’re in fact, not in a bubble. And he’s…
Read moreThe Mysterious Vancouver Housing Bubble: Part 2
It seems to be a weekly occurrence now to hear about some new data attempting to explain the ever-rising home prices in Vancouver. This week, Benjamin Tal, deputy chief economist at CIBC, pointed to some data from Landcor Data Corp. which estimated that only 10% of foreign transactions in Vancouver over the past five years…
Read moreJune Resale Figures For The GTA
The Toronto Real Estate Board released their June resale figures today, showing a 9.5% increase in average house price and 21% increase in sales over June 2010. A particularly interesting point from the news release concerns the undersupply on the real estate market: “While sales have been strong, we would be on track for a…
Read moreA Final Thought About The Potential Housing Bubble
In discussing the recent report which led to a minor frenzy of housing bubble related media coverage, one of my main points was that it was unwise to predict countrywide drops in housing prices for a country with some pretty important differences from one region or city to another. Specifically, the data I presented showed…
Read moreMaybe Prices Aren’t Going To Drop THAT Much
Yesterday I discussed a report that suggested that the Canadian housing market was due for a big price correction. The primary piece of evidence used by the research firm Capital Economics was that the ratio of house prices to disposable income per capita was 25% above their expected levels, according to the company’s calculations. In…
Read moreResearch Firm Predicts 25% Drop in Canadian Housing Prices
A report by Capital Economics, suggests that house prices in Canada could fall by 25% over the next three years. The report points to some specific concerns for their worrying prediction: -Housing prices relative to disposable income are 25% overvalued -Unoccupied housing units are at historical highs -The homeownership rate has increased sharply over the…
Read moreThe Mysterious Vancouver Housing Bubble
The fact that Vancouver is currently in the midst of a housing bubble is very much un-mysterious. House prices are up 21% over the last year and 188% over the last decade. The average house in Vancouver is 11.1 times the average annual income, double the national average. The mystery lies in what the driving…
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