Wit Ventures: Should Canadians Worry About a Housing Bubble?

Thursday 20 July 2017

Should Canadians Worry About a Housing Bubble?

From the CBC.

Canada's housing market may be finally showing signs of cooling.

According to Canadian Real Estate Association statistics, average national home prices have fallen 10 percent since the heights of April this year.

Change is attributed in part to the Bank of Canada raising interest rates for the first time in years, as well as provincial legislation in Ontario and B.C. aimed at slowing skyrocketing prices in Toronto and Vancouver.

But is this dip in price a blip, a soft landing, or the bursting of a bubble?

***

"Over the last five years the private sector debt in Canada has grown 20 percent, and it's the leading pace of increasing credit in developed countries."

Edmonton-based housing analyst Hilliard MacBeth believes a housing price correction is due in Canada. (CBC)

"Once [housing] prices start to correct, as they have in Toronto, these issues with debt become much more important."

MacBeth warns this pricing dip may be the calm before the storm. He sees a comparison between some Canadian markets and the United States before their 2008 housing collapse.

Link to the rest here.

Thank you for reading.

1 comment:

Unknown5 September 2017 at 08:49
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Shirley D. Neal

Shirley has over 30 years of experience in such diverse businesses as financial planning, manufacturing, and supply. Her education includes a B.A., B.ED., M.ED., C.F.P., N.L.P. and the home inspector’s course as well as having her AZ license for five years. Her family home has given her and her husband the opportunity to do extensive renovation and repairs thereby increasing the value about $100,000 in ten years. She has been able to see firsthand how much a sensible and cost efficient renovations can add to the value of a home. Shirley has chosen joint ventures because she thinks that her experiences an help others achieve their goals and maximize the profits for both parties. In 1979, Shirley became involved in a small group of women who started a metal manufacturing company making small deep drawn metal parts for the automobile companies in Windsor. They took the company from start up to over $400,000 in sales in five years. That was a lot of parts since the parts sold for only five cents per each. In 1985 they sold the company to one of their customers. Whether it was selling mutual funds, teaching foster parents how to recruit foster parents, or working for Tony Robbins, Shirley has put more than 100 percent into every endeavour she was involved in.