Canadian real estate market

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dlbww
captain of 100
Posts: 729

Canadian real estate market

Post by dlbww »

Garth Turner posted this to his blog (http://www.greaterfool.ca" onclick="window.open(this.href);return false;) recently: http://www.greaterfool.ca/2016/11/28/the-illusion-4/" onclick="window.open(this.href);return false;

IMO Canada is no different than other countries around the globe that have been through a real estate correction; it isn't different here (I live in Canada). We were simply able to defer the event with some creative loan strategies and in so doing create a massive feedback loop of real estate hype and hysteria in the land of make believe. Well it's coming to an end and for those over-extended in real estate it doesn't look promising (Martin Armstrong's charts show a 15 year decline in real estate globally which began the end of 2015). And to add insult to injury the construction and finance industry makes up more than 20% of Canada's GDP. When the economy goes south so does the $CDN (which it has been doing) which makes all things imported more expensive (read food from California).

Back in April 2012 Nicole Foss (in a prophetic sort of way) described the scenario we now find ourselves in (https://www.youtube.com/watch?v=_acwahNKjNU" onclick="window.open(this.href);return false;) including the falling $CDN, the collapse in oil prices and now falling real estate. The depth of that decline might be questionable however she believes we are heading into a global deflationary depression where asset prices get revalued e.g. what would be worth more in a deflationary depression a castle on a postage size building lot or a small home on arable land where you could produce some of your own food?

A number of years ago during the financial crisis of 2008/2009 I was speaking with an acquaintance who summed up his feelings regarding the situation the world then found itself in by stating he was "choosing not to participate". How naive I thought especially for someone who was clearly not an island and depended on the world around himself for even the barest of necessities. For those who have checked off the pie-shaped pieces on the Church's wheel of self-reliancy (or whatever it's called) good on you.

Silver
Level 34 Illuminated
Posts: 5247

Re: Canadian real estate market

Post by Silver »

The Church has recommended for years that those who could should own their own home (not castle) and improve and beautify it. Although since we are now such an international organization, I can't, without searching on lds.org, recall when I might have last heard that advice.

With the extremely high likelihood of bond rates going up, high stock valuations seem even riskier than in 2008. I haven't personally owned a stock in almost a decade because the corruption of Wall Street makes me sick.

We are still counseled though to have food, water and a financial reserve. Why not do something that will make the elites angry? Store some silver as part of your financial reserve. http://www.providentmetals.com" onclick="window.open(this.href);return false;

Sunain
captain of 1,000
Posts: 2711
Location: Canada

Re: Canadian real estate market

Post by Sunain »

The housing market here in Canada is unaffordable for young people starting off like myself. Rent, even for an apartment is out of control. The government here doesn't seem to want to really do anything about it.

If you want to see a depressed bunch of members of the church these days, go to a young single adult or single adult ward. Ask them if they realistically think they could afford to start a family these days. A large majority of them will say they can't. Faith has nothing to do with market forces beyond our control. It was beyond our control during the Great Depression and arguably it's worse than then. This is just another way Satan is trying to ruin the family, by making it unaffordable except for the elite rich to have a family.

I saw in the news today that it's the same situation in the United States once again. Housing prices have soared right back up to the pre-bubble mortgage prices.
Home Prices Recover Ground Lost During Bust
By Laura Kusisto
Updated Nov. 29, 2016 5:36 p.m. ET

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U.S. home prices have climbed back above the record reached more than a decade ago, bringing to a close the worst period for the housing market since the Great Depression and stoking optimism for a more sustainable expansion.

The average home price for September was 0.1% above the July 2006 peak, according to the S&P CoreLogic Case-Shiller U.S. National Home Price index released Tuesday. As of the previous month’s reading of the Case-Shiller index, a widely used benchmark for U.S. housing, prices remained 0.1% below the July 2006 record.

Adjusted for inflation, the index still is about 16% below the 2006 high. Home prices jumped 5.5% over the past year.

The record caps a four-year recovery from the trough of 2012, when prices sat 27% below the peak after a crash that caused more than nine million American families to lose their homes.
http://www.wsj.com/articles/u-s-home-pr ... 1480428083" onclick="window.open(this.href);return false;
It's actually escalated pretty high here now in Vancouver. People are starting to burn down empty houses that are being used as investments.
$60M+ In Vancouver Real Estate Targeted By Suspected Arson This Month
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In November over $60 million in vacant Vancouver real estate has been set ablaze, in what investigators are calling “suspicious.” Vancouver real estate is a unique market. Where else in the world would you find smurfing, money laundering, abandoned mansions, and now the arson of vacant multi-million dollar homes. Since the announcement of the vacant home tax, officials suspect more than $60 million in property has been set ablaze in what authorities are calling “suspicious.”

10 Vacant Homes Set On Fire This Month
Just this month, at least 10 vacant homes slated for redevelopment have been set on fire. This comes just days after the City of Vancouver proposed a vacant home tax, to tackle the empty home problem that’s been plaguing the city for years. 8 of those homes have been publically identified, and a quick check of property values tallies up to $66,207,098 in property. In just the past 30 days, we’ve seen double the number of vacant home fires set in all of 2015.

29 Vacant Home Fires
Vacant home fires in Vancouver have been on the rise this year as a whole. Year to date, we’ve identified 29 fires at vacant homes, a 480% increase from the year before. The total value of the places in question have an assessment value of over $100 million, and almost all were scheduled for redevelopment or have been vacant for years. Both the Vancouver Police Department and the Vancouver Fire & Rescue declined to discuss the fires with us any further, citing it was an “active investigation.”

https://betterdwelling.com/city/vancouv ... his-month/" onclick="window.open(this.href);return false;

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