tag:blogger.com,1999:blog-5936637281134795592.post7958491291140797213..comments2024-03-08T08:55:52.985-08:00Comments on Whispers from the Edge of the Rainforest: It's Different Here - you believe that, right?Unknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-5936637281134795592.post-27521115490660419662012-10-30T12:01:20.099-07:002012-10-30T12:01:20.099-07:00Internet income now days become part of life almos...Internet income now days become part of life almost everyone as i also earning via internet from Global Domains International GDI Income for Life you can earn <a href="http://www.freedom.ws/webincome5" rel="nofollow">Unlimited income</a> while sitting the homes and without affecting your current business- Free Training - Join GDI Global Domains International Here<br />Use username <b>webincome5</b> as access code to see the presentation ...<br />Anonymoushttps://www.blogger.com/profile/08293736664466572449noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-42636209427080823302012-10-11T21:20:38.112-07:002012-10-11T21:20:38.112-07:00There are many other factors that make the Canadia...There are many other factors that make the Canadian housing market more vulnerable than the US market was before it crashed.<br /><br />Canada's current oversupply is 41%, much higher than the 29% that was seen in the US at their peak. This will become more evident as prices correct/crash. <br /><br />Americans can write off their mortgage interest, while Canadians cannot.<br /><br />The cost of living in general is much higher in Canada than the US. Food, fuel, cars, airfare, furniture, etc. are all much more expensive in Canada than in the US.<br /><br />Overall, Canada's price to income ratio is currently higher than it was in the US at their peak. <br /><br />All these factors add weight to the coming correction/crash of Canadian house prices, making our market much more vulnerable than the US market was.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-83520452418282659462012-10-11T20:30:58.946-07:002012-10-11T20:30:58.946-07:00We are no different here.
As the global engine slo...We are no different here.<br />As the global engine slows the house of card's teeters and falls.<br />The weakest link determines downward housing prices, no job, gotta sell.<br />Worried about the market going down and willing to cut losses, going to sell.<br />The market is hooped, 20k inventory around the corner.<br />Desperation, going to sell.<br />Its still a bit of a stand off but necessity will eventually shake things up and then it will quicken the downward spiral.<br />It is the way this always end.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-4412748509115579892012-10-11T18:41:31.036-07:002012-10-11T18:41:31.036-07:00We will see Cdn rates nudge up in 2013, irrespecti...We will see Cdn rates nudge up in 2013, irrespective of the US.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-71541628890124138882012-10-11T11:22:03.108-07:002012-10-11T11:22:03.108-07:00Hate to break it to everyone but rates arent going...Hate to break it to everyone but rates arent going up. A Romney win adds a risk of rate pressure, but I dont think even he has the balls to install a hawk in the Fed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-2219138374229185542012-10-11T10:57:36.232-07:002012-10-11T10:57:36.232-07:00I was at retail banking lending section before. Th...I was at retail banking lending section before. Those crazy years between 2003 and 2007, realtor had so much power to push mortgage deals, show client more and more expensive houses, and pushing bank staffs to increase approved mortgage amount, etc etc. <br />As for CMHC, I remember there was Self-employed individual's stated income policy. (now should be removed) With 20% Downpayment or something, if you can prove you are business owner for more than 3 years, you don't need to show confirmed income. <br />Just provide business statement, or corporate / sole owber registration older than 3Y. This I think is extremely risky mortgage lending practice.<br /><br />Personal opinion, other than this stated income CHMC mortgage for business owner, regular CHMC mortgage was pretty strict on Income confiramtion. Cannot negotiate GDS/TDS override, so I am not too much worried there.<br /><br />Most risky ones maybe the "Equity lending" mortgage. <br />Again, no need to show confirmed income to support debt service, but you need to have at least 35% down. Some banks had cap purchase amount to $1MM, or had sliding scale method and others have no limit as long as you have 35% or 40% downpayment. <br /><br />Also, Real Estate agent in old days (pre-internet era), had specific important inforamtion that agents only had. (remember thick MLS hard copy book?)<br />Now most of the info are accesible for public,<br />so not much special tools they have now.<br /><br />As someone said, RE Agents should be more regulated, enhanced ethics and moral course, due deligence during licensing, just like securities broker or legal representatives.<br /><br />I just cannot stand RE agents talking about "Market" like stock brokers.<br />They may just need to know client's budget, family structures, area preferred, etc and find the right place for them!<br />If in securities broker's world, many shuold have been already suspended.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-629763714404272352012-10-11T08:56:56.259-07:002012-10-11T08:56:56.259-07:00From way back in 2009:
Why Canada's Housing B...From way back in 2009:<br /><br />Why Canada's Housing Bubble Will Burst<br />'The largest sub-prime lender in the world is now the Canadian government.'<br />"In an effort to prop up the real estate market in 2008 (when affordability nosedived), the Harper government directed the CMHC to approve as many high-risk borrowers as possible and to keep credit flowing. CMHC described these risky loans as "high ratio homeowner units approved to address less-served markets and/or to serve specific government priorities." The approval rate for these risky loans went from 33 per cent in 2007 to 42 per cent in 2008. By mid-2007, average equity as a share of home value was down to six per cent -- from 48 per cent in 2003. At the peak of the U.S. housing bubble, just before it burst, house prices were five times the average American income; in Canada today that ratio is 7.4:1 -- almost 50 per cent higher."<br />http://thetyee.ca/Opinion/2009/10/22/BubbleWillBurst/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-49464475608444173832012-10-11T08:35:19.489-07:002012-10-11T08:35:19.489-07:00"we will not have a US-style housing crash. O..."we will not have a US-style housing crash. Our crash will be uniquely Canadian."<br /><br />I wholeheartedly agree. The US had a sharper boom and bust and spent much less time at elevated prices. Canada has slowed it down and dragged it out with explicit government backing (moral hazard), while somehow believing itself immune. Our response to grossly elevated house prices has been vastly stupider, and the economic damage caused by overpaying should be greater based on Volume Weighted Average Price.rp1noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-24946698031549238182012-10-11T08:30:15.102-07:002012-10-11T08:30:15.102-07:00There is a lot of truth to what you say in your po...There is a lot of truth to what you say in your post. However, there is one major misconception that needs to be pointed out.<br /><br />"In the United States inflationary pressure caused by.... The US Federal Reserve raised interest rates 17 times...<br /><br />This triggered the collapse of the housing bubble."<br /><br />This is NOT what caused the housing crash. These were certainly factors that contributed to it, but not the root cause. It's so important to understand this because the exact thing is happening here.<br /><br />The US housing crash was caused by two factors, a complete oversupply of homes and condos, and a complete lack of buyers. Construction in the US was in full throttle in 2007 where developers had no concept of the idea that maybe there wouldn't be buyers. At the same time, everyone who could have gotten into the market was in at the current price points. Many I knew when I lived there borrowed money from family. But yes it's true in a lot of cases loans were given out when it was clear the person lacked the capability to actually pay it.<br /><br />When prices went down that is when things went to hell in a handbasket.<br /><br />Inventory levels are currently at 19k. How many people do you know who are looking to buy a primary residence?JRnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-21308700144750140862012-10-11T08:27:56.218-07:002012-10-11T08:27:56.218-07:00I sincerely hope the Feds do not step in and try t...I sincerely hope the Feds do not step in and try to avert the collapse with more meddling interference.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-92112040630584891382012-10-11T04:42:16.363-07:002012-10-11T04:42:16.363-07:00Very good article and very truth.Very good article and very truth.Anonymousnoreply@blogger.com