Caution About Canada? – “I was watching Al Jazeera English via satellite dish. A report came up about the buoyant Canadian housing market and how the level of household debt is now a cause for concern.”

Posted on 10 May 2012 | 9 Comments

“I was watching Al Jazeera English via satellite dish. Suddenly one report came up. It was about the buoyant Canadian housing market and the level of household debts that are now a cause for concern. Nothing is new actually but this means the world is now cautious about Canada.”
- ‘Thai-born Chinese Canuck’ at VREAA, 5 May 2012 2:57am

This entry was posted in 05. Where do Buyers get the money?, 08. Overextended Buyers, 14. Social Effects of the Boom and tagged , , , , , , , . Bookmark the permalink.

9 Responses to Caution About Canada? – “I was watching Al Jazeera English via satellite dish. A report came up about the buoyant Canadian housing market and how the level of household debt is now a cause for concern.”

  1. Van guy | 10 May 2012 at 7:57 am | Reply

    The middle east is sending its warning about Canada. That’s scary. Yesterday’s new listings almost hit 400. I believe we have now had 8 straight days of 300+ listings.

  2. Fish10 | 10 May 2012 at 8:07 am | Reply

    We are going from poster child for prudence to irresponsibility over-night. Of course the bloggers have been warning about this for several years.

  3. chubster | 10 May 2012 at 8:58 am | Reply

    arbitrage opp … long 3rd world debt, short 1st world debt … actually i think gs may be doing this already

    • jesse | 10 May 2012 at 10:36 am | Reply

      I think you might have it backwards. If anyone thinks they can arbitrage sovs better than those who live and breathe this stuff, may I suggest they will do better buying a Vancouver condo.

      • chubster | 10 May 2012 at 10:38 am |

        got lost … not enough breadcrumbs

      • jesse | 10 May 2012 at 11:49 am |

        Do you think 3rd world debt is going to outperform 1st world debt? There are a few smart cookies who think just the opposite. That’s all.

      • chubster | 10 May 2012 at 12:03 pm |

        actually, yes – that’s the irony. i was being a little silly but … generically … 1st world sov debt is a disaster from the fundie pov … ‘smart cookies’ will own it but only what they know can be backstopped … but the backstops won’t hold forever and when they go, there’s going to be a big payday for somebody on the opposite side … when is a very difficult question, however

  4. an observer | 10 May 2012 at 10:13 am | Reply

    March avg Listings/day = 265
    April avg Listings/day = 313
    May avg Listings/day = 351

    March avg Price Changes/day = 112
    April avg Price Changes/day = 148
    March avg Price Changes/day = 148

    March avg Sold/day = 136
    April avg Sold/day = 148
    May avg Sold/day = 140

    Once all the new homes that are being rushed out start hitting the market in the next 6-12 months and over leveraged builders slash prices just to try to cut losses or break even the existing homes will be forced down. Then comes the increasing foreclosures and potentially higher interest rates that further drop the market. Beginning of a devastating vicious cycle

  5. darwind01 | 10 May 2012 at 10:43 am | Reply

    Thanks Bank of Canada.

    “It’s different here”

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