Canadian Banks | Forums | Terms of Use

Welcome to the Canadian Financial Forums forums.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact contact us.

Go Back   Canadian Financial Forums > Canadian Financial Forums > Real Estate and Mortgages
Reload this Page Does Canada have a housing bubble?
Blogs FAQ Members List Calendar Search Today's Posts Mark Forums Read

View Poll Results: Does Canada have a housing bubble?
Yes, Canada has its own huge housing bubble 4 50.00%
Yes, but the bubble is moderate compared to countriesd like US 1 12.50%
The bubble exist only in big cities like Toronto, Vancouver, Montreal, Calgary, etc. 1 12.50%
Canadian housing is fairly priced 1 12.50%
What bubble?!? Canadian housing is underpriced 1 12.50%
Voters: 8. You may not vote on this poll

Reply
Page 1 of 2 1 2
 
Thread Tools Display Modes
  #1  
Old 09-24-2009, 07:11 PM
Canadian Canadian is offline
Senior Member
  
Join Date: Jun 2008
Posts: 415
Exclamation Does Canada have a housing bubble?
Does Canada have a housing bubble? I would like to start a discussion and hear your opinions on this.

My opinion is that we have a big fat housing bubble, which is due to pop any moment now. Share yours and don't forget to vote.
__________________
Bear with me please
Reply With Quote
  #2  
Old 09-25-2009, 01:21 PM
trent trent is offline
Senior Member
  
Join Date: Jun 2008
Posts: 387
Default
It sure does! Last year I was expecting about 30% correction in the TO market (from top to bottom), however with the current insane market I won't be surprised to see 40-50% down from the top (assuming the price will creep a little higher from here).
__________________
No debt
Reply With Quote
  #3  
Old 09-25-2009, 04:41 PM
Tightwod Tightwod is offline
Member
  
Join Date: Jun 2009
Location: Whitby
Posts: 40
Default
Bubble?? Overpriced, yes.

When incomes go up more than inflation and interest rates are at historic lows it creates demand. When rates increase affordability goes down, when income decreases affordability goes down. It is inevitable to me that rates will go up. demand will go down and house prices will come down.

What I can't figure out is how anyone new to the housing market can afford a home at these prices, let alone in Vancouver & Toronto etc.

I blame the baby boomers for all our inflated prices. As these guys age (even more than they are now, ha ha) they will exit the larger family dwellings they are in now and move to smaller bungalows, retirment buildings condos and rural towns or cottages. I think in the future 10-15 years you will see a large drop in value of mid sized family homes.

It sucks but but really this generation dictates the economy! They are the consumers of today!

The bigger question is, what do we do about it?? You have to live somewhere. So for those that have more equity in their homes, they should sell and do what?? Rent, buy a smaller place so that when it does go down you won't lose as much $?

Maybe..... I need to start developing some really nice retirement communities?? Who's with me?
Last edited by Tightwod; 09-25-2009 at 04:44 PM.
Reply With Quote
  #4  
Old 09-26-2009, 02:19 AM
Rickson9 Rickson9 is offline
Member
  
Join Date: Sep 2009
Location: Mississauga, Ontario
Posts: 83
Default
I think people have been predicting a RE bubble pop for the last half decade now...

Sorta reminds me of the oldschool gold bugs telling everybody that gold will be $2000 per ounce (inflation adjusted)... Hey look! It's almost half way there! 25 years later...
Reply With Quote
  #5  
Old 09-28-2009, 04:33 PM
trent trent is offline
Senior Member
  
Join Date: Jun 2008
Posts: 387
Default
Quote:
Originally Posted by Rickson9 View Post
I think people have been predicting a RE bubble pop for the last half decade now...

Sorta reminds me of the oldschool gold bugs telling everybody that gold will be $2000 per ounce (inflation adjusted)... Hey look! It's almost half way there! 25 years later...
Yes, but look what gold did since 2001 and compare it to the dismal performance of Dow and S&P. As for the Canadian housing bubble it will pop sooner or later, and those patient enough will be rewarded, while the ones jumping in now will live to regret their decision.
__________________
No debt
Reply With Quote
  #6  
Old 09-29-2009, 02:42 PM
Steven Steven is offline
Senior Member
  
Join Date: Jul 2008
Posts: 139
Default
The only Canadian city that has real estate bubble is Vancouver, the rest (even the big cities) seem fairly priced to me.
Reply With Quote
  #7  
Old 10-01-2009, 03:08 PM
Jason Jason is offline
Member
  
Join Date: Jul 2008
Posts: 64
Default
Yep, a humongous bubble ready to deflate and crush hundreds of thousands overleveraged borrowers. Watch out!
Reply With Quote
  #8  
Old 10-02-2009, 02:15 PM
Canadian Canadian is offline
Senior Member
  
Join Date: Jun 2008
Posts: 415
Default
Quote:
Originally Posted by Rickson9 View Post
I think people have been predicting a RE bubble pop for the last half decade now...

Sorta reminds me of the oldschool gold bugs telling everybody that gold will be $2000 per ounce (inflation adjusted)... Hey look! It's almost half way there! 25 years later...
So, you think the bubble won't pop, is that what you are saying? Gold may easily go to $2,000 when the stock markets dive again, and governments start to bail out everybody in sight.
__________________
Bear with me please
Reply With Quote
  #9  
Old 10-02-2009, 02:35 PM
bullish bullish is offline
Senior Member
  
Join Date: Jul 2008
Posts: 155
Default
I don't know about you but my house has appreciated 65% in the last 5 years, and you just whine that the market is overpriced, because you missed the train. However if you think that the market in Toronto is overpriced look what similar properties cost in London, Paris, Rome and New York, and you will see that GTA houses are bargain compared to those cities.
Reply With Quote
  #10  
Old 10-02-2009, 07:01 PM
Rickson9 Rickson9 is offline
Member
  
Join Date: Sep 2009
Location: Mississauga, Ontario
Posts: 83
Default
Quote:
Originally Posted by Canadian View Post
So, you think the bubble won't pop, is that what you are saying?
No. I said that, 'I think people have been predicting a RE bubble pop for the last half decade now...'

Quote:
Originally Posted by Canadian View Post
Gold may easily go to $2,000 when the stock markets dive again, and governments start to bail out everybody in sight.
I don't think the price of gold is correlated with the stock market, but I'm no expert.
http://cosmos.bcst.yahoo.com/up/fop/...rouselEnable=0
__________________
Visit my website at http://www.ticonline.com
Last edited by Rickson9; 10-05-2009 at 08:37 PM.
Reply With Quote
Reply
Page 1 of 2 1 2

« Previous Thread | Next Thread »
Thread Tools
Display Modes
Hybrid Mode Hybrid Mode

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT. The time now is 10:34 AM.

Contact Us - Archive - Top

Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2024, vBulletin Solutions, Inc.