Anyone who follows economics in cyberspace knows of Mike Shedlock’s ‘Global Economic Trend Analysis’. ‘Mish’ today [19 Nov 2011] highlights Vancouver’s bubble, quoting the following letter from ‘Terry’:
“I am beginning to believe that Canada’s housing bubble is making the US housing bubble look bush league in comparison. The worst part is Canadians are so delusional they still believe that “It is different here”. 50,000 dollars can now buy you a pretty decent house in some parts of the US, do you want to see what $1,050,000 buys you in Vancouver? A house that is described as “livable”.
Wow, million dollar mortgages which are fully insured by the tax payers of Canada are being handed out to 20 year-olds like they are candy and meanwhile our government still declares, just as the US government did before it’s house crash, that there is no housing bubble and that prices will remain stable and “affordable”. And the rest of the world still looks on and considers Canada to be a fiscally responsible, financially prudent country. Just another of many myths that get started and than repeated ad nauseam by the press without understanding the whole story.”
“Housing bubble denial in Canada keeps getting louder and louder, as prices become more and more absurd.”…
“Note the alleged 6 bedrooms (3 converted from the basement) but only 2 bathrooms. Who are they kidding? Is this the happy hooker flop house?
Unfortunately, pictures like these are easy to find.
The longer this continues the bigger the crash. Look for prices on such properties to crash 75% or more. When it does, it will be no bargain.”
Our own prediction at VREAA is for a conservative 50%-66% off. Who is this ‘Mish’ guy, some lunatic bear?
(Actually, we can imagine 75% off for some properties.)
What do these Yanks know about markets?