Think Toronto or Vancouver real estate is too expensive? Then consider more affordable places like Los Angeles, New York, or San Francisco. Oxford Economics released its North American Housing Affordability Index (HAI) for Q2 2021. The global forecasting firm found affordability has deteriorated across North America. Toronto and Vancouver real estate were in a league […]
Hong Kong, New York City, and Paris? They have nothing on Canada’s biggest real estate bubbles. UBS released its annual Global Real Estate Bubble Index today. Two Canadian cities managed to rank near the top of the charts — Toronto and Vancouver. Toronto home prices now rank as the second biggest bubble in the world. […]
Global real estate prices have uncharacteristically surged during the recession. It didn’t come without consequence, warned the International Monetary Fund (IMF), this week. The agency’s regular Financial Stability Report said global home prices are now stretched. Stimulus policies backstopped the market, creating moral hazards. Buyers now have a “can’t lose” feeling, pushing them to pay […]
Canadian home prices just keep rising at a faster and faster rate. US Federal Reserve (The Fed) data shows real home prices in the country surged in Q2 2021. Actually, that’s really underselling what happened. Residential real estate prices in Canada are growing at the fastest rates in the G7. Not just over the past […]
Dust off the disco ball and rolled up dollar bills, because the 1970s are back. At least the signs of 70s-style stagflation are forming, according to one of Canada’s Big Six banks. National Bank of Canada (NBC) chief economist Stéfane Marion warned clients of the rising risk of global stagflation. Rising oil prices, soaring food […]
New Zealand property investors will see another tax advantage disappear soon. On Tuesday, the Government of New Zealand revealed they’ll limit mortgage interest deductions. The plan goes into effect October 1 and is hoping to lower the incentive to speculate with housing. This measure follows a series of actions to discourage speculators. The government says […]
Germany is one of the world’s biggest real estate bubbles, and it might pop in a spectacular way. Yesterday the majority of Berlin residents voted to nationalize 240,000 rental units. The move was driven by Deutsche Wohnen & Co. enteignen (DW enteignen), a housing activist group looking to cut large corporate landlords. The referendum isn’t […]
Australia’s central bank is warning home prices may threaten the country’s financial stability. Reserve Bank of Australia assistant governor Michele Bullock gave a housing update this week. She warns the quality of borrowers has been deteriorating, as they take on more leverage. As the share of these borrowers surges, so does the risks they bring […]
Canadian households devote an astronomical amount of income just to carry their debt payments. Data from the Bank of International Settlements (BIS) shows Canadian households have a very high debt service ratio (DSR). The ratio dropped in Q4 2020 slightly, but it’s still much higher than any other G7 country. Not even the US housing […]
Canadian real estate has long been frothy, but how does it look compared to other countries? According to the US Federal Reserve (the Fed) exuberance index in Q1 2021, pretty bad. Only two G7 countries are considered exuberant markets (a.k.a. bubbles) — Canada and Germany. Those two countries are also the longest-running bubbles of any […]
