When is Canada's Housing Bubble going to burst

[B00Mer]

Do you think Canada's Housing bubble is going to burst soon??

Personally, I think real estate in Canada is far, far over priced. Stupidly over priced.

Canada's Housing Bubble

 

[jjaycee98]

You obviously know nothing as to what Real Estate costs are throughout the world. Just try catching the International House Hunting program on Home & Garden TV channel. Recently a woman paid $160,000 US for an apartment that was 172 square feet. Sleeping mat on a loft to gain space, 3 X 5 bathroom where you had to scootch under the sink to sit on the toilet. Our Master bedroom is 14 X 17 with an adjoining Bathroom and Walk in closet-not bragging here-just saying we do not value what we have in this country.

 

[B00Mer]

You obviously know nothing as to what Real Estate costs are throughout the world. Just try catching the International House Hunting program on Home & Garden TV channel. Recently a woman paid $160,000 US for an apartment that was 172 square feet. Sleeping mat on a loft to gain space, 3 X 5 bathroom where you had to scootch under the sink to sit on the toilet. Our Master bedroom is 14 X 17 with an adjoining Bathroom and Walk in closet-not bragging here-just saying we do not value what we have in this country.

No, that's not very fair - I own land.. just don't feel that a house that was $100,000 20 years ago is now worth $500,000 in Vancouver, or Calgary.

Why even bother, you can get much bigger, much better elsewhere.

 

[petros]

No, that's not very fair - I own land.. just don't feel that a house that was $100,000 20 years ago is now worth $500,000 in Vancouver, or Calgary.

Why even bother, you can get much bigger, much better elsewhere.

Not for long.

 

[earth_as_one]

The bubble will burst about 6 months after interest rates go up.

 

[JLM]

You obviously know nothing as to what Real Estate costs are throughout the world. Just try catching the International House Hunting program on Home & Garden TV channel. Recently a woman paid $160,000 US for an apartment that was 172 square feet. Sleeping mat on a loft to gain space, 3 X 5 bathroom where you had to scootch under the sink to sit on the toilet. Our Master bedroom is 14 X 17 with an adjoining Bathroom and Walk in closet-not bragging here-just saying we do not value what we have in this country.

Yep, it's gone from the sublime to the ridiculous- 60 years ago a family of 10 lived in a four room house, now two old fogies live in a 10 room house bouncing around like a couple of beebees in a boxcar! :lol:

 

[Liberalman]

Houses or condos are worth whatever a person is willing to pay for it. When people don't pay want to pay the high prices then the price will come down. I have seen the bubble burst over the years and the prices has always come back higher than before but if people who feel the economy will get worse will try to sell their properties while the price is high and if there is a flod of homes on the market then prices comes down fast.

 

[petros]

This is what happens when your Canadian bubble home bursts.

 

[skookumchuck]

Where i am the mass movement of baby boomers with equity and decent pensions has ebbed and the market has slowed. Very few jobs here that pay enough for people to even buy a sub 200 thou home.

 

[earth_as_one]

Houses or condos are worth whatever a person is willing to pay for it. When people don't pay want to pay the high prices then the price will come down. I have seen the bubble burst over the years and the prices has always come back higher than before but if people who feel the economy will get worse will try to sell their properties while the price is high and if there is a flod of homes on the market then prices comes down fast.

Real Estate has intrinsic value. Money has perception value Real Estate value doesn't change unless the property falls into disrepair. What you are seeing is really the effect of money having less value. Money decreased in value as a direct consequence of Quantitative Easing in 2008-2010. The alternative was deflation.

Housing prices will continue to rise, but they will maintain more or less the same value. But as they reqire more money in trade, the average average person will have less buying power. But when inflation kicks in, many people will be forced to sell their homes reducing prices temporarily.

Wait for interest rates to rise. That causes interest rates to rise. People who can't afford to renew their mortgages are forced to sell. Real Estate prices drop....

 

[earth_as_one]

Inflation is an inevitable result of Quantitative Easing. It hasn't happened in a big way yet, but its coming. Banks will have to increase interest and mortgage rates to match inflation. Increased mortgage rates are bad news for people who have stretched their credit to the limit. Anyone who can barely pay the mortgage at 3% will be forced to sell their homes at 6-10%.... Those rates are coming sooner or later. When the number of motivated sellers is greater than the number of motivated buyers, house prices decline. The change could be a crash if interest rates suddenly increased. It also depends on how high they go. Governments can reduce the impact by more Quantitative Easing... punting the problem into the future, but creating a vicious cycle.... which is where we are right now. QE is unsustainable without growth. QE done improperly could lead to stagflation with depression like consequences...

Governments are trying to get off the QE train, but the political costs of austerity are high and it won't happen in the US during an election year. Currently Canada has a stable federal government, but the last federal budget only made small steps towards getting off the QE train, for stability reasons.

Pay down your debt.

 

[JamesBondo]

It depends on why you are buying.

If you are buying because you want a house to live in. And, the numbers work for you, you could do alot worse than buying now.

If you are buying as an investment, then certainly a fluctuation in prices might be your only profit potential. Do your homework. Know your facts.

 

[L Gilbert]

I'd be happy if this place went back to the assessed value it was when we bought it. Lower property taxes.

 

[JLM]

I'd be happy if this place went back to the assessed value it was when we bought it. Lower property taxes.

Not if they change the mill rate!

 

[L Gilbert]

Not if they change the mill rate!

True enough. Maybe someone will burn their mill.