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Looser Mortgage Standards Hit the UK! Is Canada Next?!

Home Finances

There’s nothing surprising about the loosening of mortgage standards to spur growth. In the last real housing bubble of 1990, banks and government brought in stricter lending rules, making it tougher for borrowers to get a mortgage.

Fast forward to the present. We’ve yet to see a housing bubble or market crash, but the government has taken drastic – perhaps even unheard of – precautions to slow the housing market.

In 1990, I was working for the largest trust company in Canada. I can tell you that it has never been harder to qualify for a mortgage than it is today!

Continue reading “Looser Mortgage Standards Hit the UK! Is Canada Next?!”

REAL facts on Housing Prices… they’re not dropping like you may think!

House Prices Blog Image, April 2018

In recent months, we’ve seen the mainstream media publish several stats and articles about Canada’s declining real estate market.

The popular stories go something like this: Home sales fall by 22%; or Home prices drop by 10%. Does that sound familiar? Bad news grabs our attention. It’s human nature.

Now, for a dose of reality…

It’s true, there are fewer home sales when compared to last year’s crazy red-hot housing market. In 2017, home sales and home prices were up 20% and 25% in the first four months of the year. That pace is unsustainable. We don’t ever want to match that pace. Continue reading “REAL facts on Housing Prices… they’re not dropping like you may think!”

Housing market is active but will slow in summer as it ALWAYS does..

Much has been written about the Canadian housing market.  Even more about greater Toronto and Vancouver.  The pessimists are waiting for a collapse.  The optimists are hoping the prices keep going up.  Then there’s the realists.  They would like to see the market slow and maybe even for prices to go down, so that we don’t have a housing bubble. Which one are you?

When it comes to the housing market, I’m a realist.

Every Spring, for the last 10+ years, the real estate market in Canada heats up.  Prices increase, they sell faster, and supply can’t keep up with demand. It’s become the norm.  In June, July and August, the market gets very quiet and prices go down.  That’s right, they actually go down.

This year was no different except for 2 things..  Supply was very low in January, February and March, causing selling prices to jump as much as 20% over last year in some markets.   Now, let’s look more closely.. Continue reading “Housing market is active but will slow in summer as it ALWAYS does..”

Trump’s George Ross says Canada’s Housing market is undervalued….

George RossGeorge 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….”

CMHC’s Ontario Housing conference 2014 highlights: the news is good!

CMHCA few weeks ago, I attended CMHC’s Ontario Housing Market Outlook conference.  This annual conference provides Financial experts with an insight into some of the best data available.    Now, in case you didn’t know it, CMHC probably has the largest database of information in Canada.  So when they publish stats and make forecasts, we need to listen.

This year’s speakers included Ted Tsiakopoulos, Regional Economist CMHC, Ed Heese, Senior Market Analyst CMHC, Dave McLean, President Mattamy Homes (Canada’s largest home builder) and Peter Zimmerman, Director of Development Freed Developments (highrise condo builders).   I really enjoyed hearing Ted speak.  His presentation was backed up by a wealth of stats.   Let’s see if you agree about the forecast. Continue reading “CMHC’s Ontario Housing conference 2014 highlights: the news is good!”

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