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Contents contributed and discussions participated by calvin yue

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calvin yue

Introduction to Housing Bubble Problem | Calgary Real Estate - 0 views

calgaryrealestate.ca/...introduction-housing-bubble

housing prices

shared by calvin yue on 08 Jan 12 - No Cached
  • Another topic for discussion is how to prevent a housing bubble. Some economists argue that governments and central banks can and should take action to prevent bubbles; others say that they aren’t able to do so and that they can only clean up the mess after the bubble bursts.
  • When the Bubble Bursts
  • Many households that took out loans are unable to cover the debt.
  • ...4 more annotations...
  • The immediate effect is the depletion of wealth resulting in a negative impact on household consumption. A decrease in demand destabilizes the banking system, and investors are unable to pay off their debts.
  • increases.
  • Unemployment
  • The bankruptcy of banks and other financial institutions may have a negative effect on the financial system and even on industry. In most cases, the government has to involve itself in the stabilization of the country’s markets with the unavoidable increase in public debt.
  • calvin yue on 08 Jan 12
     
    hoursing price :what is Housing bubble problem and what is going to happen if the bubble brust
calvin yue

Canada Price History-Canadian housing market strong | Global Property Guide - 1 views

www.globalpropertyguide.com/...Price-History

Housing price

shared by calvin yue on 08 Jan 12 - Cached
  • Buoyed by strong demand and low interest rates, Canadian house prices continue to rise.  In the year to end-June 2011, the national house price index rose by 4.52% (1.37% inflation-adjusted), according to Teranet-National Bank of Canada. Even stronger price-rises are suggested by the latest Canadian Real Estate Association (CREA) figures, which report that average homes prices were up 9.3% on the year, to CA$361,181 (US$369,068).
  • The previous 3 years in summary:       • House prices rose 4.06% in 2010 (1.66% inflation-adjusted)       • House prices rose 5.24% in 2009 (3.87% inflation-adjusted)       • House prices fell 0.57% in 2008 (-1.71% inflation-adjusted). In July 2011 sales were 12.3% up from a year earlier, according to CREA. The total number of newly listed homes rose by just 1% in July 2011 from the previous month. There was 6.1 months of housing inventory, suggesting a balanced market.
  • House prices rose 4.06% in 2010 (1.66% inflation-adjusted) House prices rose 5.24% in 2009 (3.87% inflation-adjusted) House prices fell 0.57% in 2008 (-1.71% inflation-adjusted).
  • ...5 more annotations...
  • In 2011, housing starts are forecast to drop 3.5%, according to CMHC.
  • Existing home sales are expected to fall 1.7% to 456,000 units in 2011, according to the Canadian Mortgage and Housing Corporation (CMHC).
  • In 2009, total MLS existing home sales were up 7.2% on the previous year, with British Columbia and Ontario leading the increase.
  • The new housing price index (NHPI) fell 0.1% in July 2010 from the previous month, the first monthly drop in the last 13 months, according to Statistics Canada.
  • Rental market is stable
  • calvin yue on 08 Jan 12
     
    supporting statistics and graph
calvin yue

House Prices In Canada - 0 views

www.livingin-canada.com/house-prices-canada.html

housing prices

shared by calvin yue on 08 Jan 12 - Cached
  • calvin yue on 08 Jan 12
     
    Supporting statistics
calvin yue

All About Cities » Solving the rental housing shortage and price challenge - 0 views

allaboutcities.ca/g-shortage-and-price-challenge

housing price

shared by calvin yue on 08 Jan 12 - No Cached
  • In the Vancouver metro area, and in many cities across Canada (and the world) people are
  • starting to increase the value they place on: short commutes, walkable communities, transit-oriented
  • communities, and living a more sustainable lifestyle (less auto use, for example).  If you want a healthier planet and environment, this is a good thing.  But it has the consequence of higher housing prices.
  • ...6 more annotations...
  •  Second, steps need to happen to convert suburban areas that are currently more auto-centered into more walkable areas with amenities nearby.  This will also mean existing residents in these places accepting more density and even some new commercial uses in their areas.  You don’t get the customers for successful organic grocers, coffee bars, clothing stores, etc. without a lot of people living nearby, but increasingly you don’t get people wanting to live nearby without the grocers and cafes.  
  •  And housing of any type is helpful in making rental accommodations more affordable to those of modest means.  We need more purpose-built rental, more owner-occupied homes, more co-ops, more co-housing projects, more subsidized housing plans, and anything creative in between.  This will help push down prices, or at least stop their escalation in places with growing populations or growing demands.
  • Sometimes I hear renters’ rights groups protesting a city planning department giving a
  • concession
  • to a luxury rental project
  • claiming it doesn’t help the poor and middle income.
  • calvin yue on 08 Jan 12
     
    possible solutions for solving the high housing price
calvin yue

Housing prices could fall 25%, research firm warns | Real Estate | News | Financial Post - 0 views

business.financialpost.com/...ld-fall-25-research-firm-warns

housing prices

shared by calvin yue on 08 Jan 12 - No Cached
  • Canada’s housing market is a bubble ready to burst as valuations have “lost touch with fundamentals” and household debt is at a record high
  • The independent research firm’s report says it fears that house prices could fall by as much as 25% over the next three years.
  • House prices have been growing rapidly for nearly a decade now and it has reached the point where housing is so overvalued relative to incomes that a downward correction seems unavoidable
  • ...5 more annotations...
  • Relative to disposable income per capita, our calculations suggest that housing is around 25% overvalued, which is approaching the level of excess that the U.S. market reached at its peak in 2006.”
  • Capital Economics says signs of over-building are evident as unoccupied housing units are at historically high levels, similar to 1994-95 when housing construction was last mired in a slump.
  • Another sign of over-building, or perhaps over-consumption, is the sharp increases in the home ownership rate over the last 10 years,”
  • This run-up has coincided with a housing price boom fuelled by rising financial leverage.
  • Our concern is that these excesses will eventually lead to a house-price correction, which would greatly impact household wealth, consumer confidence and the economic recovery
  • calvin yue on 08 Jan 12
     
    Canada's housing market is becoming a bubble and ready to burst.The evidents could be over-building, or perhaps over-consumption.
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