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  • Canadian housing 21% overvalued, ratings agency says

    Sky high prices in the Canadian real estate market won't be climbing for much longer, says a report by global rating agency Fitch Ratings.

    The agency forecast Tuesday that home prices across the country are in for a "soft landing" and will either flatten out or slightly decrease over the next five years. It estimates that current prices are overvalued by up to 26 per cent in some regions (21 per cent nationally) and nominal prices could fall by up to 10 per cent over the next five years.

    Fitch Ratings said the Canadian economy will be exposed when this happens, as many homebuyers have financially stretched themselves to borrow for their home purchase and will be in for a shock once interest rates start to climb.

    It noted a downturn in the housing sector will also impact jobs, as companies have scrambled to build new homes and push construction to record levels in recent years.


    More: http://www.cbc.ca/news/business/cana...says-1.2432265

  • #2
    Canada’s housing market most overvalued in the world

    Property market overvalued

    Canada is home to the world’s most overvalued housing market, Deutsche Bank says in a new study that suggests overvaluation to the tune of 60 per cent.

    Other groups have put Canada near the top of the list, but the German bank puts it at the top, ahead of Belgium, New Zealand, Norway, Australia, France, Britain, Sweden, Finland and Spain, which make up the rest of the top 10.

    Deutsche Bank economists Peter Hooper, Torsten Slok and Matthew Luzzetti came to that conclusion via an average of two measures, ratios of home prices to rent and home prices to income, compared to their historical averages.


    More: http://www.theglobeandmail.com/repor...ticle15878166/

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    • #3
      Average home price rises almost 10% to $391,085

      New data released Monday from the organization that represents home sellers shows Canada's housing market continues to hit new highs, with the average price increasing by almost 10 per cent in the last 12 months to $391,085. The Canadian Real Estate Association said the strong gain was in part because this time a year ago, sales were down in some of the largest housing markets.

      More: http://www.cbc.ca/news/business/aver...-085-1.2465695

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      • #4
        Canada’s invisible housing correction

        After a solid sales report from the Canadian Real Estate Association, one economist says the likelihood of a housing correction is “much smaller now.”

        Fears that Canada’s residential real estate market is headed for a downturn appear to have subsided following a positive June sales report from the Canadian Real Estate Association (CREA). Month-over-month resales (on a seasonally adjusted basis) rose for the fourth consecutive time in June. The Multiple Listing Service (MLS) Home Price Index is also up for the fifth straight month.

        More: http://brighterlife.ca/2013/07/17/ca...ing-correction

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        • #5
          Vancouver's housing 2nd least affordable in world

          Vancouver is ranked second only to Hong Kong in housing affordability according to Demographia's 10th annual survey of 360 housing markets in nine western countries. The survey divided median housing prices in Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, Singapore, the U.K. and the U.S. against median gross household income to come up with its ratings.

          More: http://www.cbc.ca/news/canada/britis...orld-1.2505524

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          • #6
            TD Bank, IMF say Canadian real estate 10% overvalued

            Many experts and economists, from the OECD to the IMF, agree the Canadian housing market is overvalued – the question is by how much.

            According to TD economist Diana Petramala, the figure is 10 per cent. The International Monetary Fund agrees, estimating Canada's real estate is 10 per cent too expensive, according to an assessment of the Canadian economy released today.

            In her quarterly regional housing report issued Monday, Petramala says prices in cities such as Toronto, Ottawa and Vancouver are more overvalued than markets in the Prairie and Atlantic regions.


            More:
            http://www.cbc.ca/news/business/td-b...lued-1.2521476

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            • #7
              Ottawa's 'dangerous' meddling biggest threat to housing: economist

              Canada's hot housing market isn't in bubble territory, according to a new report which argues that it's the federal government's "dangerous" tightening of mortgage rules that poses the biggest threat to home prices.

              That view, from housing market economist Will Dunning, runs contrary to many readings of Canada's housing sector.

              Many analysts have examined the state of housing in this country and declared it overheated, overvalued, and ripe for a tumble in prices as soon as interest rates begin to rise.


              More: http://www.cbc.ca/news/business/otta...mist-1.2569851

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              • #8
                BMO's mortgage rate cut won't have big impact on housing market


                The amount of chatter that the Bank of Montreal’s mortgage rate cutgenerated this week is more proof that Canadians are not yet sick of talking about real estate. But it's unclear how much of an effect the new 2.99 per cent five-year rate will have in terms of driving new buyers to the market.


                "I’m not sure it's going to be a huge driver of a massive spring selling season," said Ben Rabidoux, president of the market research firm North Cove Advisors, which specializes in the housing market. "I think it's probably very likely that after this promotion ends that they reset their rates back to 3.5 per cent, and it's probably not going to be matched by the other big banks."


                More: http://www.cbc.ca/news/business/bmo-...rket-1.2588606

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                • #9
                  Average house price in Canada rose 7.1% to $416,584 in May

                  The average resale price of a Canadian home continued to march higher, with the national real estate association showing it hit $416,584 in May, a rise of 7.1 per cent compared to the same month a year earlier.

                  The Canadian Real Estate Association said sales activity in Toronto and Vancouver continue to skew the average price higher. If those two cities are stripped out, the average Canadian home is worth $336,373 while the year-over-year increase shrinks to 5.3 per cent.


                  More: http://www.cbc.ca/news/business/aver...-may-1.2674494

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                  • #10
                    High-end home sales booming across Canada

                    Sales of houses that cost at least $1 million are booming in Canada's four biggest cities, high-end real estate firm Sotheby's says.

                    Sales of homes priced higher than $1 million increased in Vancouver, Calgary, Toronto and Montreal, Sotheby's said in a report published Tuesday. But as with other segments of Canada's housing market, demand for luxury homes isn't increasing evenly.

                    In the first half of 2014, overall sales in the million-dollar-plus category were up by more than a third compared to last year's level in Toronto and Vancouver. But

                    Toronto was the only place in Canada where sales increased in all categories of housing that Sotheby's tracks — condos, attached homes and detached homes.


                    More: http://www.cbc.ca/news/business/high...nada-1.2698908

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                    • #11
                      How the housing market has cooled in most of Canada

                      While the headlines from the Canadian Real Estate Association may highlight the nearly seven per cent spike in the average price of a house over the past year, analysts say the real story is that for most of the country, the housing boom appears to be over.

                      "It’s not a disaster by any means, but we’re very much back to a normal or a soft market in a lot of parts of Canada," said housing analyst Ben Rabidoux, president of North Cove Advisors,


                      More: http://www.cbc.ca/news/canada/how-th...nada-1.2707753

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                      • #12
                        Housing market a bubble set to burst, investment expert says

                        An Edmonton investment manager has a dire warning about the Canadian real estate market: a major correction is coming.

                        “The more that I researched it and the more I asked questions about it, the more convinced I became that we are in a significant bubble in Canada,” said Hilliard MacBeth, director of wealth management at Richardson GMP, in an interview on CBC’s The Exchange with Amanda Lang.

                        MacBeth makes that argument in his coming book, When the Bubble Bursts: Surviving the Canadian Real Estate Crash.


                        More: http://www.cbc.ca/news/business/hous...says-1.2784511

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                        • #13
                          Canada's average house price rises 7% to $419,699

                          The average price of a Canadian home hit almost $420,000 in October, up by more than seven per cent compared to the same month a year ago.

                          The Canadian Real Estate Association said Monday that the average price of a home sold on the agency's MLS service was $419,699 last month — an increase of 7.1 per cent compared to the same month in 2013.

                          With the October numbers by CREA, the average Canadian home has never been worth more than it is now.

                          In volume terms, the actual number of homes sold rose by the same amount — seven per cent. "This marks the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009," CREA said in a release.


                          More: http://www.cbc.ca/news/business/cana...-699-1.2835066

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                          • #14
                            Overvalued housing prices and how to read them: Don Pittis

                            I was reading about baseball cards over the Christmas holidays and it made me think of Canadian houses.

                            From the Bank of Canada's warning to last week's devastating analysis from Germany's Deutsche Bank that claimed a 63 per cent overvaluation, it seems we are being told once again that we think our houses are worth a lot more than they really are.

                            As we wait for the latest figures from the Canadian Real Estate Association (CREA) this week, homeowners and prospective buyers will be looking for concrete signals about what to believe.


                            More: http://www.cbc.ca/news/business/over...ttis-1.2898003

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                            • #15
                              Average Canadian house price hit $401K in January, up 3.1% in past year

                              Canadian home prices continued to tick higher, according to January figures, but on an annual basis, they rose by about three per cent — the smallest increase in almost two years.

                              The Canadian Real Estate Association said Tuesday the average price of a home was $401,143 last month.

                              More: http://www.cbc.ca/news/business/aver...year-1.2959869

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