Real Estate Bubble
"Toronto and any city that is remotely within commuting distance are overheating, and perhaps dangerously so."
Instead of crashing in 2008, countries like Canada, Australia, New Zealand, and the U.K. decided we just needed more money. The result? Soaring real estate prices, stagnating incomes, mounting household debt and lowered economic output have sent four of the largest economies in the realm into a massive bubble.
Getting a first-time mortgage from a Canadian bank is like getting security clearance to work at NORAD. Income, credit history, source of down payment funds... are all key measurements to qualifying. These rules, of course, only apply to Canadians. Foreign buyers, some have speculated this week, may be receiving preferential treatment.
"Their gamble is that it's better to look like you're doing something than to appear indifferent or tone deaf to the issue."
Don't go it alone? High housing prices are making young Canadians team up with friends to enter the market
According to many North American economic analyses, we're not headed toward a bubble -- we're in one. But how is this bubble different from past bubbles and what will happen when it ultimately bursts?
This year promises to be particularly exciting for real estate investors. For the first time in many years, we may actually see the interest rates creep up from their historical lows. The head of the US Federal Reserve, Ms. Janet Yellen, indicated on numerous occasions that the rates would go up incrementally as their quantitative easing was coming to an end.
Say this for Hilliard MacBeth: the man has guts. While a number of analysts have expressed concern that Canada is in a housing
Ottawa may need to step in again to cool an overheated housing market that is showing no signs of slowing, according to a
OTTAWA - Federal Finance Minister Jim Flaherty says he's prepared to clamp down on mortgage rules once again if Canada's