Is the Real Estate Party Over in Canada (Jul 6 2017)

7 posts / 0 new

Thu, 2017-07-06 22:15

NorthReport

With interest rates about to rise, just askin'

Toronto Home Sales Drop Most in Eight Years

Average prices dropped 14 percent in the last three months across the Toronto region to C$793,915, reflecting fewer sales of large homes. That compares with a 1 percent rise over the same period last year. Deals for single-family homes in Toronto and its surrounding regions fell 45 percent and average prices dropped 12 percent from April to C$1.06 million.

Even with the slowdown, the average detached home is still above C$1 million in the city and surrounding region, with prices up 7.8 percent in June. The composite benchmark price, which reflects the cost of a typical home, rose 25 percent in June from a year earlier, though it declined 1.3 percent on the month, the first drop since August 2014.

https://www.bloomberg.com/news/articles/2017-07-06/toronto-home-demand-s...

Fri, 2017-07-07 12:44

Sean in Ottawa

I would say no.

The factors that were behind this have not gone away. However the party is perhaps on a road tour.

Once it gets to the unsustainable in one place, it moves. It was Vancouver with Toronto just a little behind. Vancouver put on the brakes and Toronto continued. Toronto put on the brakes and we are hearing it is shifting to other locations. Here is this story from today in Ottawa:

http://www.cbc.ca/news/canada/ottawa/real-estate-ottawa-sellers-1.4193916

The options appear to be either more robust national policies (if they would make a difference) or a more general national catastrophe once this runs its course everywhere in the country.

Otherwise there are only two possible directions from the point of what is an unsustainable price:

1) Those prices come down substantially

2) There is enough inflation in other areas while the real estate does not continue upwards that some catch-up occurs. By this I mean the relative cost of other things and, more important, wages.

These adjustments can occur either quickly or slowly but the meaning of unsustainable prices is that they will happen.

Those areas that have seen declines are really still above normal, safe, sustainable levels.

It does not appear as if the inevitable has really happened -- so far.

Fri, 2017-07-07 12:58

josh

I didn't know it had acheived official party status.

Fri, 2017-07-07 13:13

(Reply to #3) #4

Sean in Ottawa

josh wrote:

I didn't know it had acheived official party status.

Hah

Fri, 2017-07-07 19:38

iyraste1313

real estate inflation (of course not counted in official stats) is a function of easy money policies....below zero interest rates and money printing via QE or whatever you wish to call such scams........this alongside financial asset inflationism.....the starategy held by all parties to keep the economies growing...as debt grows......

is there anyone out there that believes we can inflate forever? So our corporate profits, government revenues and personal incomes reach the point of blowout for lack of income just to pay interest costs!

Given the obvious...you wonder why these pages like everywhere are not focused on how to prepare, how to build a political movement recognizing this inevitable collapse......sure it has not yet come...but the longer we hold on...the bigger the collapse...can anyone seriously deny this reality?

Mon, 2017-07-10 16:03

SeekingAPolitic...

Canadians are broke.

http://www.bnn.ca/27-of-canadians-in-over-their-head-with-mortgage-payme...

You have to listen to the video, click get the full accounting of the situation.

Hear is some goodness from BNN,

44% of Canadians(mortage holders) are insolvent at 200 dollars increase at month. Thats 2400 payment on the year, a car repair or/leaky roof are your finished.

53% of Canadians are insolvent at 300 dollars a month. 3600 a year.

You are house rich but 44% are 200 a month away from cash poor. I guess canada could have a massive garage sale. But in a more serious note, people with no debt and cash are going to have serious opportunitys to buy stuff on pennies on the dollar. This anogoly is overused , theater with one exit and fire. The first bunch of people will get out but when panic no will get out. First batch of people will be able to sell and downsize but when the screws are apllied on a large of amount of people people will not be able downsize. 44% are $200 dollars away from being broke. Even if 10% of those people get religion and try to downsize, the market price will fall quite a bit.

Thu, 2017-07-13 15:22

iyraste1313

It´s remarkable how a supposedly intelligent people, can have allowed such insanity to evolve re housing and financial speculation asset superinflation.......so we are now into general central bank tightening, everywhere...way way too late!

Where is the political debate to come as the panic sets in, housing values drop, interest rates continue to climb...what will it take? A managed housing market? Where everyone is guaranteed a home based on capacity to pay?

And who are the managers? Another serious problem what with our bloated managerial philosophy, parasitacally sucking off every dime available, being the nature of super management society....so this too needs looking at and transforming...all very heady revolutionary stuff to deal with as I wait the spark to send the system collapsing out of control.....