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.”

“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

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

    • 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.

      • got lost … not enough breadcrumbs

      • 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.

      • 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. 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. Thanks Bank of Canada.

    “It’s different here”

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