Infographic: Vancouver Detached Home Price vs Government Intervention.

‘Infographic: Vancouver Detached Home Price vs Government Intervention’, care of Canadian Watchdog, 18 Aug 2012

15 responses to “Infographic: Vancouver Detached Home Price vs Government Intervention.

  1. Not to get all “technical” here but a 12 month filter results in a 6 month group delay, the peaks and troughs are actually 6 months earlier than on the graph.

    Sales lead prices, ergo. Like the chart.

    • Actually it’s Van’s new HPI that’s delayed by about 3 months. You can see February’s average detached price increase begin to show later in the HPI’s March numbers. Chart

      What throws the chart off a little is the raw sales numbers shaded in the background. I added it because it corresponds on time the events listed. Aside from that, over the next few months the HPI will begin accelerating like average prices.

      Other charts for the blog:

      HPI really is a Frankenumber. The boards should have changed their headline price to median prices (like the US) a long time ago to avoid this confusion, but then again, it wouldn’t make much MSM headline drama.

  2. Renters Revenge

    “The CMHC (nor any kind of insurance company) never possesses enough cash to cover all of these potential liabilities, they invest it. The problem here is that the CMHC has bought the very same assets they are insuring against. If the mortgage market collapses, so too will the value of the assets of the CMHC, making them extraordinarily difficult to liquidate in order to raise the cash necessary to pay out their claimants. It’s a catch-22 that spells potential disaster and deeply impairs their ability to actually insure against this particular type of credit risk. If we adjust the CMHC’s total insurance and assets to look at their net exposure and see how well their assets cover the amount of guarantees they’ve made we see that this ratio has grown tremendously, from a low of 3.85 in 2009 to slim 8.81 in 2011.  This was the result of drastic actions taken by the CMHC shortly after the US housing bust in order to ensure that there was no panicked sell off here in Canada.  These actions essentially boiled down to “guarantee everything in sight”, and the results speak for themselves.”

    • I said it before and I am saying it now: CMHC should be abolished.

      • CMHC shouldn’t be misused. Imagine instead of juicing housing in an insanely low interest rate environment, it was put to use reducing demand for mortgage credit and leaving the credit for business investment. Canada, since it cannot control its bank rate, desperately needs exactly this kind of mechanism. It just needs to be in CMHC’s charter in a way that an irresponsible administration can’t buy an election by spurring housing demand for four years.

  3. hey, watchDog

    what is the ratio of dog ownership to home ownership? What direction is this ratio heading, and does it follow Nelson’s correlation? that is, what is the correlated to home price (+1), No correlation (0) or negative correlation (-1)?

    hint, home ownership and pet ownership hit record rates recently, at very close to record home prices

    file under Doggy Graphics

    • … + optional viewage supplement …

      • Well, at least that was more fun than graphs and stats.

      • “Eat your peas”, Angela… When Dr. J and WatchDog go to such great pains to educate, inform and entertain us by putting their cherished BackToSchool Compass&Protractor kits to good use, it behooves us to pay attention…

        Speaking of ‘paying attention’… who here can spot the thematic link between this….

        and this….

        [G&M] – To avoid home-buyers’ regret, do your homework

        …”But a recent survey commissioned by TD Canada Trust suggests the most common regrets for first-time home buyers have little to do with paying near record level prices, or purchasing the wrong house. Instead, many say it was a mistake not to buy sooner so as to stop pouring money down the rental hole with nothing solid to show for it.”…

        [NoteToEd: As regards geometry/charting, I have a marked preference for FrenchCurves]

  4. Pingback: The Trap | Empowered Legacies™

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s