tag:blogger.com,1999:blog-5936637281134795592.post9092847057847961942..comments2024-03-08T08:55:52.985-08:00Comments on Whispers from the Edge of the Rainforest: Non est Mea CulpaUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5936637281134795592.post-63986116146597878292009-10-29T09:50:29.315-07:002009-10-29T09:50:29.315-07:00M - This isn't making sense to me. How can pe...M - This isn't making sense to me. How can people's actual equity rise with rising prices? Now I realize that there are many many lending institutions that would have people believe that they have more equity, and encourage them to borrow on it, but it was my understanding that actual equity is the amount you have paid on the principle of the loan. Please correct me if I'm wrong, but if the case you are stating is correct, shouldn't Whisperer's chart look exactly opposite? In other words, since prices have only gone up, shouldn't we see continuous rising equity since 2003? Hmmm...<br />GMAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-42834707217378779082009-10-29T03:00:04.610-07:002009-10-29T03:00:04.610-07:00Hi Jason, the way I read Whisperer's reference...Hi Jason, the way I read Whisperer's referenced chart is that there were a lot of people who bought with weak down payments in 2003, but the subsequent property bubble has caused a rise in their equity. <br /><br />If property prices were to drop to pre-bubble levels, the people with 42% equity in their homes today (who bought in 2003 with, say, 10% down), will probably end up in the same position as before, with only 15-20% equity.M-https://www.blogger.com/profile/11157896639592232047noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-36098574811110284802009-10-28T17:19:22.816-07:002009-10-28T17:19:22.816-07:00Jason,
An excellent source of data on CMHC is fro...Jason,<br /><br />An excellent source of data on CMHC is from blogger Johathan Togge <a href="http://americacanada.blogspot.com/" rel="nofollow">here</a>.<br /><br />The graph that shows Canadian home equity as a share of home value from 2003 to 2007 can be seen <a href="http://2.bp.blogspot.com/_0YOsyi5WbLY/SmTDnZtunCI/AAAAAAAAAFs/Ry833Eeho_0/s1600-h/Home+Equity+5%25.Bmp" rel="nofollow">here</a>.<br /><br />CMHC's 2008 annual report can be found <a href="http://www.cmhc-schl.gc.ca/en/corp/about/anrecopl/upload/Annual-Report-2008.pdf" rel="nofollow">here</a>.Whispererhttps://www.blogger.com/profile/03524022285962626228noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-7869660382651592002009-10-28T15:19:59.436-07:002009-10-28T15:19:59.436-07:00Well, I don't want to be the "fanboy"...Well, I don't want to be the "fanboy" for the Whisperer, but I'm not concerned about the veracity of the numbers and stats that are being cited in the posts. What concerns me are the implications for our economy given that I believe they are true. <br />Anonymous, is there anything in particular that you are skeptical about?Paulnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-5966810453569918372009-10-28T15:01:14.888-07:002009-10-28T15:01:14.888-07:00The whisperer has so far not told us what his cred...The whisperer has so far not told us what his credentials are and I doubt most of his figures. Of course there is always a bit of truth which is quickly exaggerated. I read it once in while cuz I think his cynicism is humorous. I'm still waiting for him to say something positive.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-11387331140934948312009-10-28T09:03:24.164-07:002009-10-28T09:03:24.164-07:00Holy f@^*ing Sh!&. I am soooooo glad that I do...Holy f@^*ing Sh!&. I am soooooo glad that I don't own right now.<br /><br />Thanks for the wonderful blog by the way. One question though, where did the numbers for the average equity in canadian homes come from that you referenced a couple of days ago...the stats that the 42% average equity in 2003 has now decreased to 6% because of our "conservative" government....? It seems like a crazy number. Little on the internet surprises me but, wow, you have to average a LOT of 5% down payments with 42% to get 6%.Jasonhttps://www.blogger.com/profile/07619189413114133441noreply@blogger.com