I see increasing calls for Christy Clark to ´do something´about our housing bubble.
Cristy is in a tough spot....If she tries to put the breaks on Re she will dealing with a huge bubble and help middle class families who are priced right out.
However she will also upset current owners, the housing lobby (developers and Realtors) and also take away a major economic driver ( short-lived and speculative yes, but that never stopped a politician)
In fact there is very little she can do. She has no control over the CMHC or the Bank of Canada rate or lax bank lending and if she speaks against Chinese off-shore ownership she risks alienating China and risking their investment in other areas, and I can assure you- that would lead to a major recession in BC. Tough bind.
The TD bank is the latest bank begging to be regulated more.
http://www.canadabubble.com/bubble-watch/2339-tighter-regulations-needed-against-overheating-real-estate-household-debt-td.html
This is turning out to be a weak spring for sales. Sales haven´t blossomed and are on track to be amongst the lowest in the last decade.
HOWEVER listings haven´t exploded either which removes the housing crash scenario. This is perfect. As I have said if we had a quick correction the Federal Government would lose it´s resolve and their would be no changes.
Excuse any errors or mistakes ( and I cannot make the font bigger). I am paying $$ for the internet connection.
How far can the post-election rally run?
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*Mid-week market update:* The latest BoA Global Manager Survey shows that
institutions have stampeded into U.S. equities in the wake of Trump's
victory. ...
8 hours ago
Front page yahoo
ReplyDeletehttp://ca.finance.yahoo.com/news/canada-s-real-estate-bubble--spot-the-signs-and-prep-for-the-pop.html
“This basically means you don’t have enough data to make definitive assessments, and this is one reason why you have debates,” Alexander says. “What I’m really saying there is overvaluation.
“The data that we have does not support the argument that there’s a big national bubble, but you could actually argue there are bubblelike qualities in certain markets. And Vancouver is definitely the market that is setting off most warning signals.”.
"a weak spring for sales"
ReplyDeleteMarine Gateway sold-out in the first 4 hours.
Ads tauting iPod3 on craiglists a week and days before the official sale last Friday.
Thanks for posting, Fish.
ReplyDeleteHsbc getting out of consumer finance ( read sub-prime)
ReplyDeleteMore and more banks are warning or butressing themselves against an over-stretched consumer
www.vancouversun.com/business/HSBC+shuts+consumer+finance+business/6338516/story.html