housing interesting canada tops the list

[malleefarmer]

Canada tops the list

[malleefarmer]

A recent study by global investment bank UBS, using a method developed by a branch of the US Federal Reserve, showed Australian house prices were about 7 per cent above previous peaks in 2003, 2007 and 2010.

What goes up tends to go down, and after each of those peaks house prices tended to stagnate or fall slightly.

And while global real estate markets have been going crazy on low interest rates, Australia has been more insane than just about anywhere else, perhaps excluding Canada, New Zealand and Hong Kong.
The folks at Demographia, who do an annual property study comparing markets across eight nations, found that Sydney was the world's second most expensive city relative to income after Hong Kong, with prices 12.2 times typical annual earnings.

Don't smirk too much if you live outside the Harbour City though, with Melbourne equal fourth and the other three capitals with populations over a million rated "severely unaffordable" for the twelth year in a row, plus plenty of regional areas in that category.

To back up those private sector measures, this is the ABS chart of capital city home prices since 2003. How many other things can you think of that have almost doubled in price over the past 13 years? Certainly not most people's pay packets.

[ajl]

Just a function of which countries central bank is printing the most. Once again Canuckistan is the winner. B of C governer is trying to cut interest rates because out lousy economy needs more stimulus apparently but the problem is that Canadian can't afford vegetable and fruit if it does so as all that is imported from the US and worthless currency can't buy it. Interest rates need to rise, not fall since there needs to be a market signal to stop piling on the debt.

[Rareearth]

Cut interest rates and devalue the dollar. Canada is a exporting nation, we must be competitive.
This has my vote but... govt spending must change, ie carbon tax out, raise gst if required. Don't fund bombardier any more.

[SASKFARMER3]

A monster of a Home in Florida will set you back 649,000 a new shit hole in East regina on a lot the size of average farm shop the home is 649,000.00

Houston we have a problem.

[Rareearth]

And that is a interesting graph. Our government is restricting the ability for people to buy houses now through what they call "stress test" or affordability

[farmaholic]

Look where US housing prices have "recovered" to since their bubble popped. Canada's housing prices really haven't had the "reset" that the US market had. Who ever thought buying a house would turn out to be a bad investment.

Paying off an over valued house is bad enough... but as long as you can make the payments. But raise the interest rates on that same over valued house and suddenly you can't even make the payments.... walk?

[errolanderson]

This is not a 'made in Canada' housing rally in the Vancouver and Toronto markets.

Asian investment is fueling this rally as money is exiting these countries ie: China. But interestingly, the Hong Kong market is in-a-dive.

The bubble is where the money is flowing . . . and this is all due to foreign government policy.

[farmaholic]

I remember "hearing" that in this part of Western Canada houses were listed and sold for more than their list price. Obviously that has since cooled and seem to be in a bit of a buyer's market right now. But is housing still too expensive? Long gone are the days when one parent could stay home and look after the household and take care of the kids and their activities, now both parents apparently need to work to maintain the lifestyle they want. Some days, you have to wonder.... daycare bills, huge mortgage payments, kid's activities, hot holidays, car payments, credit cards......Maybe a good lifestyle but at what cost?

[cottonpicken]

Mortgage default rules are much different in the us then canada,if i remember this right you can walk away from property in canada your totally tied to it,not sure of australia.Also the us had different income tax options but i can't exactly remember the difference.