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Canada Has The Most Overvalued Housing Market In World

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http://www.visualcapitalist.com/canada-has-the-most-overvalued-housing-market-in-world-chart/

In every inflating bubble, there’s usually two camps. The first group points out various metrics suggesting something is inherently unsustainable, while the second reiterates that this time, it is different.

After all, if everyone always agreed on these things, then no one would do the buying to perpetuate the bubble’s expansion. The Canadian housing bubble has been no exception to this, and the war of words is starting to heat up.

On one side of the ring, we have The Economist, that came out last week saying Canada has the most overvalued housing market in the world. After crunching the data in housing markets in 26 nations, The Economist has determined that Canada’s property market is the most overvalued in terms of rent prices (+89%), and the third most overvalued in terms of incomes (+35%). They have mentioned in the past that the market has looked bubbly for some time, but finally Canada is officially at the top of their list.

canada-housing-bubble.png

George hoping we can become number 1?

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Yep, and this is a good blog to see just how over-valued Canadian property has become > http://www.greaterfool.ca/

Australia's not too far behind - another great blog regarding the Australian situation > http://www.whocrashedtheeconomy.com.au/

It's not a coincidence that countries several countries are now going through an asset bubble. It's deliberate policy, not an accident.

Edited by canbuywontbuy

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Amazing how many internet folk seem to think canada is immune because it hasnt happened there yet...or because they shrunk government spending for a year or something in the mid 80s or mid 90s.

Canada is no different.

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It's why he hired Carney and just look at the last two years of HPI in London; massive success.

Agreed when he was hired unfortunately it was clear on his CV housing bubble blower world class.

His housing allowance should have told us all we needed to know.

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Kind of weird, he's got plenty of form as a HPI blower and employed by George HTBed

But why did they alter the stamp duty rates?

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It's why he hired Carney and just look at the last two years of HPI in London; massive success.

not quite.

we hired carney for geopolitical reasons...a hedge against the EU.

still not quite enough to seal the deal though...we need a bit more equality on duty-free's

ie from EU is now 800 fags max......and now the same for canada,aus and USA.

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Mark Carney’s salary at the Bank of England is four times what Janet Yellen is paid at the Fed

http://blogs.marketwatch.com/thetell/2014/06/17/mark-carneys-salary-at-the-bank-of-england-is-four-times-what-janet-yellen-is-paid-at-the-fed/

Its not the salary that i find annoying its the housing allowance which he got increased.

He came in knowing that even on his salary he could not afford a decent place near his office.

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Its not the salary that i find annoying its the housing allowance which he got increased.

He came in knowing that even on his salary he could not afford a decent place near his office.

Yes; me too. I hope he's still renting though... just spent last 10 minutes trying to find an update on that. Not trying to find where he's moved to... just whether he's still renting.

While Yellen is almost certainly underpaid considering her responsibilities, don’t feel too bad for the Fed chair. Fed officials must disclose their wealth in ranges, and according to public records, Yellen and her husband hold assets worth somewhere between $5.3 million and $14.1 million.

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Yes; me too. I hope he's still renting though... just spent last 10 minutes trying to find an update on that. Not trying to find where he's moved to... just whether he's still renting.

You're not stalking him are you? Is it his rugged sub-Clooney looks? Or his firm grasp on macro-Economics???

The problem with over-valued markets is that they tend to swing to being under-valued.

The last UK housing crash sawing houses in the SE go from being almost 6 x incomes to 2.4 x incomes.

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Yes; me too. I hope he's still renting though... just spent last 10 minutes trying to find an update on that. Not trying to find where he's moved to... just whether he's still renting.

There was a thread on here and someone had uncovered the fact that he's now bought somewhere.

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Exactly

They believe so strongly in HPI that they are trying to skim the "froth".

Then why have they introduced an alphabet soup of price prop schemes including part nationalisation and lower stamp duty on property up to about £1m, or nearly all properties, where the 'froth' vs income/repayability really matters?

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Then why have they introduced an alphabet soup of price prop schemes including part nationalisation and lower stamp duty on property up to about £1m, or nearly all properties, where the 'froth' vs income/repayability really matters?

All that juicy HPI, they want a cut.

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You're not stalking him are you? Is it his rugged sub-Clooney looks? Or his firm grasp on macro-Economics???

The problem with over-valued markets is that they tend to swing to being under-valued.

The last UK housing crash sawing houses in the SE go from being almost 6 x incomes to 2.4 x incomes.

If he triggers HPC and gets behind HPC (even silently - 'unprecedented global forces') then yeahhh he'll be attractive, I'll be picturing his handsome features in some heavenly pose in white fluffy clouds with golden beams of light fanning around him... Saintly Carney; the Great Leveller... Hero no.1. I thought firms in difficult positions brought in foreign hired-guns to make the tough decisions.

There was a thread on here and someone had uncovered the fact that he's now bought somewhere.

He's moved out of his previous rental is all we know for certain. If he's bought it will be... so anti-HPC... like the end of all HPC hope. As on the other thread, it was thought he probably hasn't bought.. would be such a political statement, and perhaps he would lose his housing allowance.

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Well I bought a 4 bed house in the old town of Barrie, an hours drive from Toronto, near the lake and downtown, with pool and basement apartment and huge lot for $360,000 a few years ago with a 50% mortgage...couldn't give a monkey's left bollock what happens to its value provided I can sell it and exchange it for a smaller property elsewhere one day.

I never bought in the UK because it was much more expensive than Canada to me. Mind you Toronto is pretty pricey.

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We really need somewhere bigger, so falling prices would be a good thing, as long as we can actually sell.

But, as I've pointed out before, talking about a 'Canadian housing market' makes about as much sense as talking about an 'African housing market' or a 'European housing market'. There are multiple different markets across the country, and some are far more overpriced than others.

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61512220_Athletics_3282222b.jpg

http://www.telegraph.co.uk/finance/bank-of-england/11565613/Mark-Carney-blasts-City-competition-in-London-Marathon.html

I dont think we'll find where he bought his house (if he had bought one) - as I can't seem to find his twitter feed. The next generation of banker will be easy to dig stuff up on - they'll have pictures of their new house, and what food they are eating tonight on a mixture of Facebook, and twitter, pintinterest etc.

He did better in the London Marathon recently, and beat his time in the Ottawa Marathon. Remember, the housing market is just like a Marathon - you're in it for the long game! :ph34r:

Edited by 200p

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I dont think we'll find where he bought his house (if he had bought one) - as I can't seem to find his twitter feed. The next generation of banker will be easy to dig stuff up on - they'll have pictures of their new house, and what food they are eating tonight on a mixture of Facebook, and twitter, pintinterest etc.

He did better in the London Marathon recently, and beat his time in the Ottawa Marathon. Remember, the housing market is just like a Marathon - you're in it for the long game! :ph34r:

You might have had more success by looking at his wife's Twitter... but she caused a bit of a stir in her Tweet(s) when they were coming to the UK, and as was reported at the time, restricted her Tweets to friends only (I've not checked for ages). The next generation of banker... you mean younger ones buying their house at better value into HPC, along with younger generation of renter-savers; all happy together?

http://www.dailymail.co.uk/news/article-2299152/Housing-woe-1m-Bank-England-chiefs-wife-blames-influx-wealthy-french-London-struggle-home-despite-5-000-week-allowance.html

Personally not prepared to look at the housing market as a marathon; I can't run for long / don't run.

~ Sarge. Red vs Blue.“We’re the Reds. We don’t run anywhere. We travel as the good Lord intended - in the largest possible vehicle with the maximum horsepower allowed by local law enforcement. And if there’s no cars available, we find the biggest, nastiest, meanest land animal we possibly can, and saddle that puppy up.”

06:10 (video timeline) - full video half-way down page.

http://news.sky.com/story/1263732/carney-house-prices-biggest-risk-to-economy

Sunday 18 May 2014

Carney: The housing market in Canada - in terms of valuation is about 50% less in terms of valuation metrics

than the housing market in the United Kingdom. So let's focus on the United Kingdom.

(Then goes on about how so few houses built in UK - helping focus the bubble into supply problem - "half as many houses in Canada as they UK but twice as many houses built in Canada per year").

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So the Economist considers that Canada has the most overvalued housing market in the world and then


Sunday 18 May 2014

Carney: The housing market in Canada - in terms of valuation is about 50% less in terms of valuation metrics
than the housing market in the United Kingdom. So let's focus on the United Kingdom.


(Then goes on about how so few houses built in UK - helping focus the bubble into supply problem - "half as many houses in Canada as they UK but twice as many houses built in Canada per year").

Added to which Canada's population is about half that of the UK but with about 40 times the land area.

So which is true - the Economist or Carney.

It is an important issue as it brings into question the BoE's competence.

It's pretty well established that the BoE lacks credibility and is clueless, incompetent as well as self serving but it's an opportunity for them to explain their position in detail - and to explain why if the UK house prices are about twice the value of Canada Carney says they're not in a bubble.

That video "aut-o-mobiles" etc :P It's very funny.

Edited by billybong

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