Earlier this year, I voiced my disagreement with the real estate pessimists who said a real estate crash or bubble was forming. Click here to read more.
This same more positive outlook is backed up by CMHC’s latest Housing Market Insight report for Ontario courtesy of regional economist Ted Tsiakopoulos.
Below are some key highlights from CMHC’s report:
Continue reading “Real Estate Rebounds in June as Expected!”
You’ve seen them before.. but they went silent for a few years. I’m talking about the housing bears. The pessimists that say house prices are too high and will crash. A housing bubble.
Are they right? Maybe. But here’s the thing. We’ve been hearing that house prices are too high for over a decade. One of the more vocal pessimists is David Madani, Economist for Capital Economics.
Madani was on BNN this past week saying we are in a ‘Full blown housing bubble’. Hmmm, that sounds familiar. Let me think… when did I hear that before? Oh, that’s right, 2011. He said, we could see house prices drop by 25% in 2011. And he was completely wrong. (hope you didn’t listen to him). Continue reading “Housing bubble is coming… again?”
Houses selling over asking price is becoming the norm, these days. Kinda crazy. Sometimes a house is just listed under market value to attract a frenzy of buyers. An old tactic that has worked well in larger urban markets. Today, that tactic is being used in smaller communities, too.
What’s unclear is if this selling tactic is contributing to houses selling for more than they’re worth. And what is a home worth, anyway? I always thought a house was worth what someone was willing to pay in the open market. That’s still true in most cases, today.
When I see reports of houses selling for $100k, $200k and $300k over asking, it makes me wonder. How long will this market last? Will it crash? And if so, when? It’s hard to make forecasts and I can’t see into the future, but let’s examine this a little.
WHEN WILL THE HOUSING MARKET CRASH? Continue reading “Panic buying? When will the housing market slow down?”
Much has been made about CMHC’s Economists ‘Red Warning’ that was put out for the 4th quarter of 2016. Let’s take a look at what the report actually says.
CMHC’s economists have 3 categories of measurement that are of concern. Overheating, Price acceleration and Overvaluation.
VANCOUVER AND TORONTO
The Vancouver market had already been identified by CMHC as having moderate Overheating and Price Acceleration and Strong Overvaluation. Toronto now has the same issues with the same Overall Assessment of Strong evidence of problematic conditions.
Put another way, CMHC believes the Toronto and Vancouver housing markets are vulnerable. While this is cause for concern, there was also some other info in the report that we should be probably not overlook… Continue reading “Mortgage brief.. CMHC ‘red warning’.. what’s it mean?”
George Ross is Donald Trump’s Executive VP. He’s Trump’s senior advisor and has worked with Trump for 30 years. You’ve probably seen him on TV on ‘The Apprentice’. This week, he was quoted as saying Canada’s real estate market is undervalued, not overvalued. That’s quite the opposite of what the so-called experts have been saying for 8 or 9 years. (by the way, where are those experts now?)
If you listen to his interview, he makes some good points. Office properties have more upward potential than residential properties. But the residential market follows the Office or commercial market. He also says that buying a house for a quick flip isn’t a good strategy. It may sound good on the TV shows, but it’s a risky game to play. Mr. Ross says more fortunes have been lost in real estate than have been made. Continue reading “Trump’s George Ross says Canada’s Housing market is undervalued….”