The Canadian Housing Bubble is going to be one of the last to burst, along with China, Australia, and Singapore.
Most Canadians, of course, believe that they are different because they have more sound lending practices than we Americans. They may, but that doesn’t mean they don’t also have a bubble. They aren’t different, just late to the party.
This is the best graph I’ve seen about the Canadian Housing Bubble. And, no…boat money from Asia isn’t enough to justify this.
Hat Tip: Vancouver Real Estate Anecdote Archive
August 30, 2010 at 5:53 pm
The graph is sobering; Absolute food for thought.
The variances from Canada to the US are huge.
1/3 of Canadian Home Owners have no mortgage debt
average Canadian Mortgage 152K
Most are at a variable rate of 2.5% or less.
Unemployment rates are near 8%
There is no mortgage interest deductibility, you cannot walk away from Mortgage debt in a Short Sale.
I expect seasonal price adjustments; we had a 15% correction last year that rebounded within 6 months; Could there be a major change?
I can only forecast based on past events. Our [Toronto] inventory levels remain at less than 3 month supply levels with an avergae of 37 days on market.