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.

[SASKFARMER3]

A house is a house is a house. Realestate is a funny thing it can make people really wealthy if played well. Lady a few years back came into Regina from Edmonton and Bought lots of 60 to 100 thousand homes. When the boom hit sold them for 300 plus. Thats money timing etc.

Buying farm land before the boom at 50000 and selling at 400000 that is good timing.

But then you can do the opposite like a lot of city family who bought Condos on Spec at Peak and now own a condo that is worth 50000 or less.

Or the Developer who went to Phoenix Arizona before 2008 and thought they could do what fast what took years to do here. Hundreds of homes that no one wanted or could afford.

Or the Chinese money pouring into Vancouver a few years ago. If family member would have sold his north Vancouver home for 2.5 a year ago he could of relocated to Houston purchased a Million Dollar home their and had kids in private school plus gated community. With Same job and a Mill in Bank.

Its about what seems right and what you need to do and what you want to do.

I should of bought the Old Canadian Tire Guys house at the End of my block for less than 300,000.00 back a few years ago with its private elevator and swim pool in Basement etc double lot etc. But no I got scared as a younger guy starting out with young family and stayed in my Normal size home and paid it off. Well mine is still doing ok but the Big home down the street is doing better. Now because people want to move to nicer neighbourhoods owning a smaller home may hold its value better in the long run than the bigger. Ti e will tell but you still need a roof over your head to live.

Now lots of Young miss step one with a starter home now and go directly to the top end smaller home. This is thanks to Low low interest rates then they have a car that is small and nothing done in Basement of Back yard etc. Interest rate hike would kill them if 8% ever came back.

So the housing thing is funny and a game that will continue to be watched.

Condos in Regina are dropping and dropping hard.

[furrowtickler]

Will be interesting to see the 2016 housing numbers in Alberta .

[errolanderson]

BC government trying to cool the Vancouver market may push more Asian investment into Alberta/Saskatchewan.

Money is exiting China . . . .

[sumdumguy]

That chart doesn't seem accurate. The "index" is siperficial. In 1986 index at just over 1 and in 2016 its 1.4? The same home we bought for 185,000 in 2004 is now 425,000. That ratio is the norm in and around Regina and I suspect Saskatoon. That ratio is up 250%. Guess it's time to buy a condo.

[biglentil]

The dollar has lost 90 percent of its value since 1970. Theres no turnin this bus around so don't bet on it.