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Post by ptp2011 on Jan 23, 2011 11:39:35 GMT -5
Canada is in the middle of a housing boom, much like America was from 2002-2006. And it looks like we're going to crash in a similar manner in a year or two.
WHY are we doing this? Shouldn't we have learned from what that the Americans went through?
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Deleted
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Post by Deleted on Jan 23, 2011 11:50:08 GMT -5
Canada is in the middle of a housing boom, much like America was from 2002-2006. And it looks like we're going to crash in a similar manner in a year or two. WHY are we doing this? Shouldn't we have learned from what that the Americans went through? I dont' know. Alberta has been going through a massive housing boom around late 2004 - 2008 (summer 2008). 2009 they recovered a little bit and 2010 everything has recovered. Yes Canada is due to have it's own mini recession soon but it shouldn't be as bad as the one in 2008 was. |
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Post by "Twisted and Tormented" Ash on Jan 23, 2011 11:57:47 GMT -5
Oh sorry didn't mean to bring the curse up north.
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Post by YAKMAN is ICHIBAN on Jan 23, 2011 12:12:11 GMT -5
Our market was driven up by banks giving way too risky loans to people who had no business buying a house. Is it the same up there?
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Post by Andrew is Good on Jan 23, 2011 12:13:07 GMT -5
Hmm. Well, I'll buy a house when it starts getting low again. In Cape Breton, houses are really cheap, where as 400,000 is your average house in Fort McMurray. I got lucky, during the 2008 recession, the site I worked kept going, and other places like Suncor: Firebag got shut down.
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Post by ptp2011 on Jan 23, 2011 12:18:59 GMT -5
Our market was driven up by banks giving way too risky loans to people who had no business buying a house. Is it the same up there? Our banking system is tighter than the American one, however, our interest rates are extremely low right now, and up until around last week, we had 35 or 40-year maximum amortizations with little down payment. It's easier than ever to buy a pretty big house if you stretch yourself to the max. Here in Newfoundland, a crappy economy compared to the rest of Canada, our houses almost doubled in price since 2000. Current Bank of Canada interest rate is 0.75%, a little higher than the US Federal Reserve's 0.25%, but still extremely low compared to the 80s/90s. Last week the government adjusted the rules to make it slightly harder to buy a house. I'm not sure it is enough, and the situation looks too similar to the American one, despite our tighter system. |
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Post by Throwback on Jan 23, 2011 15:12:37 GMT -5
What does a housing boom mean?
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Post by Deleted on Jan 23, 2011 15:28:42 GMT -5
Our market was driven up by banks giving way too risky loans to people who had no business buying a house. Is it the same up there? I think the bigger problem was that the banks knew that most of their brethren were going to have a safety cushion if they went in the hole, and they indeed went in the hole and got their cushion. What does a housing boom mean? When everyone starts buying up and building housing due to a variety of reasons. In the case of the American one, people who were grossly unqualified to be homeowners got ridiculous loans that had little chance of being paid off, which allowed them to buy large homes and the like. Contractors kept building more homes expecting a constant flow of people to keep buying. The houses were incredibly overpriced, but the banks kept giving loans to people because they knew that even if they weren't going to be paid back, the banks themselves wouldn't collapse for it. So when people had to pay up and started defaulting, it created a vacuum of money that never existed via the bank loans, and the banks started taking back all these houses which were too expensive for anyone to buy without a loan. Only thing was, there was nobody to lend to and the banks didn't have anything left to loan out. That's the short answer.  |
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Post by Apricots And A Pear Tree on Jan 23, 2011 15:38:20 GMT -5
I miss the housing boom,it meant lots of work.Anyone need a basement,crawlspace,fireplace or stonework done?
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Jay Peas 42
El Dandy
Totally flips out ALL the time.
Is looking forward to a Nation of Domination Kwannza Special.
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Post by Jay Peas 42 on Jan 23, 2011 19:34:03 GMT -5
Well, yes and no. You have to remember, one of the reasons there was an American Housing Boom is because North American Real Estate is considered an safe, stable investment with low risk and decent return. The world's economy is picking up, however, you don't want to invest in American real estate, because we are still trying to sort out the problems caused by the last housing crisis. So my best guess is that investment monies that were going to the US and Canada in proportion are now going mostly to Canada.
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