Tag Archive for Tag: housing bubble

Tag: housing bubble Canada Displays Signs of Housing Bubble in 2019, Bloomberg States

  Canada and New Zealand are the most vulnerable economies to a correction in house prices, with Australia and the U.K. also drawing concern, according to new research from Bloomberg Economics.   Seeking to build a “housing bubble dashboard,” economist Niraj Shah studied ratios of house prices to rent and income as well as inflation-adjusted prices and household credit.   The results showed that Canada and New Zealand seem to be on the most unsustainable path, with the cost of housing compared with wages the highest in the world in both countries. Australia, Norway, Sweden and the U.K. also raise

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Tag: housing bubble Toronto home sales continue to decline, sign to a return to normal market

    Toronto real estate market has seen the effects of a confluence of policies: Ontario’s Fair Housing Policy, including a foreign buyers’ tax aimed at cooling the market; a new mortgage stress test targeted at protecting Canadians from dangerously high household debt levels; and the Bank of Canada’s moves to increase interest rates.   The Ontario government needed to act to cool the over-heated market when it peaked at more than 30 per cent year-over-year price growth last April, 2017..   If the government’s policy target was to increase affordability of buyers, that has not happened yet. The short

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Tag: housing bubble Toronto home sales decrease in January, 2018, may show return to a normal market

  Toronto home sales decrease in January, 2018. The prices appear relatively flat and the house sales were down about 40 per cent over the last two weeks in February, 2018, in the Toronto area compared to the same period in 2017, while condo sales dropped about 30 per cent, said Pasalis, real estate broker.   The real estate market has been affected by a series of policies like, (1) Ontario’s Fair Housing Policy, (2) a foreign buyers’ tax aimed at cooling the market, (3) a new mortgage stress test targeted at protecting Canadian banks from dangerously high household debt

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Tag: housing bubble Toronto home prices down more in August, 2017

  The Realtors and the Economists are looking at a return to normal in Toronto’s housing market despite a fourth consecutive month-to-month dropped in median residence prices. The Toronto Real Estate Board( TREB) reported that the average cost of a home in August — $732,292 (including all house types and condos) — was still up 3 per cent or about $20,000 compared to August 2016. But that is still down about 20 per cent or $187,000 lower than April, 2017, when the average rate peaked at $919,086. The number of housing sales in August, 2017 also fell, 34.8 per cent

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Tag: housing bubble Cooling Toronto housing market could be a return to normal, state realtors

  It could also be the barely disguised frustration of sellers, who listed their homes this spring expecting to attract cut-throat bids from desperate, over-extended purchasers. Instead they are seeing fewer showings and fewer offers.   Toronto area home prices dipped about 7 per cent in May, 2017 compared to April, 2017 but remained about 15 per cent higher over year averaging $863,910.     Even as the market has soared, there were some month-to-month price drops-off, said Jason Mercer, Director of market analysis for the Toronto Real Estate Board( TREB ), which published its month-end May, 2017 statistics on

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Tag: housing bubble Toronto housing market staying stronger, while Vancouver’s slowing down – TD Bank

  In toronto real estate, Toronto continues to maintain its housing market momentum whiles Vancouver real estate market looks to be softening. In a report published Tuesday, TD Bank said Vancouver has started what is expected to be a modest correction, which will be reinforced by the recent implementation of the land transfer tax on non-residents. “Home prices are projected to decline by about 10 per cent in the region by mid-2017, before stabilizing later in the year,” TD said. However, even with a drop of that size, the TD bank noted that Vancouver prices will still be well above

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Tag: housing bubble Scotiabank cuts down in mortgage lending business, stays vigilant

  In toronto mortgage, Bank of Nova Scotia (BNS.TO), Canada’s third-biggest lender, has pulled back on mortgage lending in its domestic market, potentially insulating itself if house prices fall in Vancouver and Toronto. In toronto real estate, Canada’s banks face heightened scrutiny of their mortgage underwriting practices as authorities try to tackle the potential threat of a housing bubble in the two cities, where prices have soared. “We’ve ceded some market share. That is very much a choice,” James O’Sullivan, group head for Canadian Banking, told investors after the bank reported third-quarter earnings that beat analyst estimates. In mortgage financing,

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Tag: housing bubble Toronto’s house price jump stirs fear foreign buyers may head Toronto

  In toronto real estate, Toronto’s housing market churned out another month of soaring price gains in July, 2016, fuelling concerns that it could be the next target of a tax on foreign investors. Almost 10,000 resale homes changed hands in the Greater Toronto Area last month, the highest recorded number for the month of July, 2016, the Toronto Real Estate Board reported. Average resale prices jumped 16.6 per cent to $709,825, with the cost of detached homes surging 21 per cent from the same period last year, to $952,983. Realtors say it’s still too early to tell how much

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Tag: housing bubble Toronto suburbs looks more expensive than Toronto amid ‘acute shortage’ of homes

  In toronto real estate, Toronto had another month of record-breaking home sales in July, 2016, but the city’s real estate board is warning of a “troubling trend” that is sending home affordability out of range. “While sales were up on a year-over-year basis, the number of new listings was down over the same period, representing the continuation of a troubling trend in the GTA,” the Toronto Real Estate Board (TREB) said in a statement Thursday.   “As long as very strong buying intentions are up against an extreme shortage of listings, expect home price growth to greatly outpace the

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Tag: housing bubble Canadian banks can withstand severe housing crisis, Moody’s says

Ratings agency Moody’s says that despite soaring home prices and household debt levels, Canadian banks could weather the effects of a severe housing downturn. In its latest report, published Monday, Moody’s says it conducted stress tests to determine the impact on major Canadian banks in the event of a 25-per-cent drop in home prices countrywide. The analysis also included an additional 10-per-cent decline in Ontario and British Columbia, where prices have skyrocketed in recent years. The ratings agency says that under such a scenario total direct losses to the banking system would reach almost $18 billion. However, Moody’s says the

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