"Brace yourself – a perfect storm is brewing in the housing market" https://www.theglobeandmail.com/glo...rewing-in-the-housing-market/article35579591/ "Canadians Brace For A "Perfect Storm" Brewing In Housing Market" http://www.zerohedge.com/news/2017-07-07/canadians-brace-perfect-storm-brewing-housing-market .
Monthly Canadian house price data can be found at http://www.housepriceindex.ca/ Last publication date: June 14, 2017 Next publication date: July 12, 2017 May 2017 report (published June 14, 2017) https://housepriceindex.ca/2017/06/may2017/ https://housepriceindex.ca/wp-content/uploads/2017/06/May2017.pdf For May 2017, the Teranet–National Bank National Composite House Price Index™ was up 2.18% from the previous month. year/year gain of 13.86%. Index level 210.92 The composite 6 index rose ??? month/month, for a year/year gain of ??? Index level ??? This index excludes Hamilton, Edmonton, Quebec, Winnipeg, Victoria. Toronto +3.58% month/month (28.73% gain year on year) Vancouver +1.46% month/month (8.20% gain year on year) .
It's a two-for-one deal today, with the June 2017 house price data release at 8.30am ET. Then the Bank of Canada interest rate decision at 10am ET. http://www.bankofcanada.ca/2016/07/boc-2017-schedule-fad-mpr-releases/ .
BOC +0.25% to 0.75% www dot twitter dot com/dbcurren/status/885137234491572224 #BOC: Canada’s economy has been robust, fueled by household spending. As a result, a significant amount of economic slack has been absorbed .
%% Glad to hear that; the gov is much smarter than than the market. LOL.The good news is Arabia knows how to make money on low priced oil The good news is also Arabia is much more selective , than Canada[ bad news],who they let in their borders, maybe that is why so many Canadian ETFs perform so much in a downtrend. Real estate is so local, local, local. Like i told my REALTOR, if i dont like the buyer..... i will not sell it, so RE market may hold around Canadian tar sands??
The economy is picking up in Ontario and Toronto remains an extremely attractive destination. A lot of your stats on housing are actually fairly misleading because they reflect on the rather tight and limited supply detached and semi-detached home segment. Nobody expects price stability in that segment. Turn over is quite small, it's fairly low volume. There is more moderate housing like older condos that actually appreciated in value the last few years because they were undervalued compared to detached homes. Many of these homes are still affordable and there is little reason for them to get much cheaper ( despite a recent 33% price rise ) because the demand for places to live is still rising ( and expected to be so until minimum 2050 ). Detached homes, a significant correction wouldn't surprise me, but I wouldn't count on it either. There is so much misinformation on this thread. None of it matters unless a home owner wants to move out of town within 3 years or they are a recent buyer. Recent buyers are for the most part wealthy people with no money issues and really don't care what the market does. It's not an investment to them it's a place to live in a nice city, and they have the cash. There are many people in this city with a lot of money, who think nothing of paying $1 million for a condo in the right school district or paying $25K a year for private high school ( even if that option really isn't necessary ). I personally know numerous families who are in that category, our kids when to grades K-8 with those kids.
%% NOT to worry, because trends- tend last longer than forecasted.LOL. Besides, the last poster noted people with millions + condo market.I've never known people with money that ''really dont care what the market does'' But i dont really know the Canadian condo market; i know in the US , condo market tends to be boom or bust , much , much more than detached houses. NOT to worry, the Millionaire Mind, is how average US rich people buy houses; condos go up faster + crash more, but that is in US. WE cant really blame the muslims in Detroit[close to Canada] because the socialists goofed up much of Detroit long before muslims moved in thick.....
What I hear some of you are saying here is Canada housing is very different than US housing, so no bubble there even if prices keep going up 10-20% a year, year after year because there are so many rich Canadian families who can afford expensive homes and they don't care about price as long as they can buy in a nice neighborhood? So, I googled Canada wealth and per capita and try to compare them to US. I am puzzled because I don't think Canadian residents, and for that matter those that live in Toronto, are that much richer than US residents?
Are you trying to suggest to me that real estate in US centers like NYC, San Francisco, Seattle, Boston isn't getting more expensive ? Perhaps the real problem here is that some Americans perception of what Toronto really is depends on shoddy research and no real knowledge of the city. There is a lot of corporate money in Toronto. Put it this way, our baseball team led the majors in attendance several years in the early 1990s ( 4 million per year ) and our hockey team was sold out to season ticket holders for decades with a massive waiting list. There are a lot of people making 100K or more per year and top management types making 2M-12M per year. We have US style wealth disparity in this city; however, it's not the "have nots" buying real estate. The growing lower middle class rents or pools their resources with extended family or friends for shared homes. The squeeze is definitely on a lot of people but nobody said you are guaranteed a right to live in Toronto. Actual growth was between 0-10% steady every year from 1997-2015 from the source I saw. This whole 10-33% narrative is not a trend, it was a 16 month blip on the map.