Real estate bubble to burst - BOC

[Canadian]

http://www.theglobeandmail.com/report-on-business/economy/bank-of-canada-expects-economic-growth-to-slow/article1543131/

According to the Bank of Canada:

"
The housing market, which has been a major source of the recovery, will ``weaken markedly” through the rest of this year and well into the next, because mortgage rates are already rising, the federal government’s home-renovation tax credit has expired, and the fleeting impact of a current rush of buyers trying to acquire homes before a new sales tax takes effect in Ontario and British Columbia on July 1.

Consumer spending will be crimped ``in the coming years” by the higher debt loads that Canadians have racked up during the era of super low interest rates, the bank said, which for some borrowers may be harder and harder to service as rates rise.
"

[Rickson9]

I think that a lot of people (including myself) are waiting for this to happen and history has shown that when everybody expects something to happen, it won't happen.

Especially now, with economists at all the major banks, the BoC, taxi drivers, hair salon workers and waiters all talking about a real estate bust, history will again show them all to be wrong.

[miles2152]

I agree. I see sales slowing in the real estate sector as well. Until employment numbers turn around and debt is brought under control I see things remaining sluggish. Another factor many are not talking about is that college graduates are finding it difficult to find jobs and strapped with student loans coupled with many working people having damaged their credit for the recent recession, finding a credit worthy buyer will be increasely difficult.

[up2ulee]

real estate is in a permanent boom and bust cycle that goes around every few years, there is always a huge risk with real estate, but whatever happens it always goes up, its just a matter of time

[Rickson9]

I agree. I see sales slowing in the real estate sector as well. Until employment numbers turn around and debt is brought under control I see things remaining sluggish. Another factor many are not talking about is that college graduates are finding it difficult to find jobs and strapped with student loans coupled with many working people having damaged their credit for the recent recession, finding a credit worthy buyer will be increasely difficult.

No offense, but it would be helpful to back up some of your opinions with data.

With regards to "sales slowing in the real estate sector" this isn't true.

"The Toronto Real Estate Board (TREB) reported record results for existing home sales for March and the first quarter of 2010."
http://www.nationalpost.com/homes/story.html?id=2783457

With regards to "college graduates are finding it difficult to find jobs", I have been unable to find a source that suggests this.

However, it is likely that Canada will experience higher growth in the near future.

"Canada Revises 2010 Growth Forecast Higher to 3.1%"
http://www.businessweek.com/news/2010-04-26/canada-2010-growth-now-seen-at-3-1-vs-2-6-in-2010-budget.html

[khahim]

I am glad I read this. I am seeing a house with Laeeque and have already signed up with him as my agent. How do I get out of this ?

Probably write directly to RECO via their online forms. Or call his broker Remax and let them know of this issue online with many people, I am sure this could be grounds to terminate your agreement. Maybe print all these postings and show it to this agent and hear his side of the story out perhaps. This guy looks fishy !