The bank CEOs on one side and the Regulators on the other....Carney, Flaherty and Dickson of OFSI.
Tuesday, January 31, 2012
The bank CEOs on one side and the Regulators on the other....Carney, Flaherty and Dickson of OFSI.
Monday, January 30, 2012
Saturday, January 28, 2012
Thursday, January 26, 2012
Sunday, January 22, 2012
Some Canada property markets likely overvalued: BoC
TORONTO (Reuters) - Some parts of the Canadian real estate market are "probably overvalued" and policymakers are monitoring to see if further steps are needed to cool it, the head of the country's central bank said in an interview broadcast on Sunday.
It was the second time in recent days that Bank of Canada Governor Mark Carney voiced concern about property prices, which surged after the financial crisis as borrowing costs tumbled.
"We see that in a number of real estate markets in Canada, valuations are at a minimum, firm; in others, they're probably overvalued. So there are risks there. We're watching it closely. We're working with our partners, the federal government, the superintendent of financial institutions," he said in an interview on "Question Period" on CTV.
"Measures have been taken. They've been effective. We'll keep up that vigilance. If more needs to be done, I'm sure the appropriate authorities will take those measures."
The federal government has tightened mortgage regulations several times in a bid to prevent a property bubble from forming. Finance Minister Jim Flaherty said on January 17 that the government is watching the housing market closely and is ready to intervene if needed, but is not about to do so now.
Carney once again warned Canadian exporters that they should look for opportunities beyond the main U.S. market, given the country's economic troubles.
"The nature of the U.S. recovery is, it's going to take a number of years before they get back to the U.S. that we used to know. In fact they're not, in our opinion, ultimately going to get back fully to the U.S. we used to know. So we need new markets," he said, noting the Chinese market is a tremendous opportunity for Canada.
(Reporting by Jeffrey Hodgson; Editing by Jan Paschal)
Friday, January 20, 2012
Tuesday, January 17, 2012
Sunday, January 15, 2012
Saturday, January 14, 2012
Thursday, January 12, 2012
OTTAWA (Reuters) - New home prices rose by a stronger-than-expected 0.3 percent in November from October but continued to subside in the pricey Vancouver market, according to Statistics Canada data released on Thursday.
Analysts surveyed by Reuters had expected a 0.2 percent rise. On a yearly basis, prices rose 2.5 percent, the same rate as in October.
But prices eased in closely watched Vancouver. The coastal city has Canada's most expensive property market. A surge in prices and sales there that followed the recession had caused concern about a possible bubble.
The latest data showed prices in the city have fallen gently or held steady in the last six months, and are now 0.2 percent lower than November 2010. From October to November, they were down 0.3 percent.
Prices in eastern and central Canada were rising, on the other hand. In Toronto and neighboring Oshawa prices rose 1.0 percent on the month and 6.2 percent on the year. Prices in the Prairie cities of Winnipeg and Regina were also more than 5 percent higher on an annual basis.
The latest report comes after data on Tuesday showed Canadian housing starts climbed more than expected in December.
Canada's housing sector, which did not experience the subprime mortgage boom and bust seen in the United States, played a key role in lifting the economy out of recession as ultra-low interest rates drove sales and prices higher.
But many Canadian policymakers fear the market's post-recession boom, combined with a long run of low lending rates, could create a fresh asset bubble.
Bank executives told a Toronto conference on Wednesday that the Vancouver and Toronto condo markets were particularly vulnerable.
Monday, January 9, 2012
Sunday, January 8, 2012
Hey Fish, any data from the Okanagan and Sunshine Coast for December?
Totals include variables in any given, due to preceding month's collapsed sales and deleted listings. e & oe
Sales 31 New Listings 87 Current Inventory 766 Sell/Inv. Ratio 4.05% Days to Sell 166 Average Price $196,066 Median Price $186,500
Sales 21 New Listings 51 Current Inventory 389 Sell/Inv. Ratio 5.40% Days to Sell 121 Average Price $324,183 Median Price $310,000
Sales 6 New Listings 43 Current Inventory 541 Sell/Inv. Ratio 1.11% Days to Sell 197 Average Price $297,300 Median Price $242,899
Sales 96 New Listings 179 Current Inventory 1,138 Sell/Inv. Ratio 8.44% Days to Sell 108 Average Price $451,130 Median Price $424,625
Ratio of Sales vs Inventory 5.43%
You don't need me to tell you that those sell/list ratios add up to enormous MOIs which can only be resolved by more buying or a sellers strike.
They don't have December 2010's numbers up (I couldn't find them anyway) but there are big drops compared with January 2011 prices. December is an oddity, so we won't say that the OK is crashing....yet... just that it is under some 'price pressure'.
Here are some nice graphs from Victoria
SFH average prices are now under December 2009 levels and Townhomes are really in a down-trend.
As for the Sunshine Coast. Almost no SFH sales in December - barely into double digits - while 390 sit on the books. However it was December, so volume is expected to be light. A single solitary SFH sale so far in 2012. (note my Sunshine Coast analysis ends at Pender Harbour /Egmont)
Saturday, January 7, 2012
"Some feel that the Chinese are to blame for the hefty price tags on Vancouver homes. Recent economic prosperity in China has led to the emergence of a huge class of ‘new rich’ and they are buying up Canadian real estate, sight unseen, to the chagrin of many.
And yet, Canadians are doing the exact same thing in the States, in places like Las Vegas, Florida and Arizona. The economic fallout from the sub-prime mortgage crisis combined with the overall tightening of US credit markets has led to a dramatic drop in real estate prices. The bottom line: American real estate is an accessible and potentially lucrative investment and many Canadians are already taking advantage of the opportunity.
If a house is for sale, whether it be in Arizona or Vancouver, and somebody has the money to buy it, should it matter where they come from?"
My response is simple.
Two wrongs do not make a right. If Canadians are buying in Arizona and Florida, and pricing out the local people who work and pay taxes and are policemen and nurses and firemen all the other professions whom we rely on for a civilized society- better still they are not even corrupt- then yes it is a bad thing.
However the prices in those areas have been in free-fall and the economy stinks so our money is actually benefitting everyone. Not so here. The short term benefit of a massive transfer of wealth to a few people, while the rest are under significant housing pressure is not welcome.
There are many desirable countries who DO limit foreign or investor ownership of their housing stock and somehow manage to make a big profit on those who still insist on coming.
Look at Singapore. A small industrious tax-haven with limited land, where many wealthy (especially Chinese and Europeans) want to own and live. They have set aside certain areas where investors from off-shore can buy lots and build. The price of buying is MANY time the costs of lots in the local area and the homes built must be of a certain size and cost. I believe the land is even sold with long leases and not freehold, and yet they are selling.
No extra benefits come with this land ownership like free healthcare or education or passports. It is a simple investment.
Now lets look at the us: for the price of a home, we allow all the above benefits and allow our city to be socially destabilized. Who is going to change the regulations here? No one.
Are we doing this in Arizona? Of course not, they would love us to go down there buy and get sick, and spend many thousands on the hospital bill, and forget passports- the border guard may not like the look of you and you cannot even go to your new investment.
If Mr Good had spent a bit more time researching, he would find a better example to compare to the Chinese buying everything here. Costa Rica. I was down there 6 years ago and the Americans and Canadians owned nearly every piece of waterfront. The locals just could not compete with our money. Blue collar workers were outbidding local Doctors and Lawyers. There were no regulations to prevent this.
The result was that even though everyone knew the foreign money brought lots of jobs with the new developments (mostly low paying) - I heard a lot of resentment towards the new land-owning class.
Friday, January 6, 2012
Wednesday, January 4, 2012
Although 2011 ranks the third slowest year for sales in Fraser Valley since 2002, it was only 10 per cent less than the 10‐year average of 17,210 sales. The volume of new listings received in 2011 was 6 per cent more than the 10‐year average of 29,867 new listings, placing last year third in ranking since 2002.
Sidhu adds, “One trend from 2011 that is clear was the preference for single family homes. For the most part in our region, both sales and prices of townhomes and condos either stayed on par with 2010 or decreased.”
In December, the benchmark price of a detached home in the Fraser Valley was $522,998, an increase of 3.3 per cent compared to $506,145 in December 2010 and a decrease of 1.7 per cent compared to November.
For townhouses, the benchmark price in December was $315,330, a decrease of 2.1 per cent compared to the same month last year when it was $322,054 and down 3.8 per cent compared to November. The benchmark price of apartments in December was $237,285, a decrease of 1.2 per cent compared to December 2010 and a decrease of 0.5 per cent compared to November.
Average prices year over year show detached homes up 9.1 per cent – $610,269 in 2011 compared to $559,456 in 2010. The average price of townhomes increased by 2.6 per cent, going from $336,484 in 2010 to $345,138 in 2011 and the average price of apartments increased by 0.9 per cent going from $223,910 in 2010 to $225,976 in 2011.
Tuesday, January 3, 2012
Victoria SFH dropped 8.4% Dec 10-Dec 11