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Finance minister addresses housing bubble fears

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Real Estate Professional | 20 May 2015, 03:40 PM Agree 0
Canada’s finance minister says the country’s real estate market has avoided the so-called bubble, with many markets already experiencing a soft landing.
  • | 20 May 2015, 04:51 PM Agree 0
    This is the biggest load of nonsense. I'm a realtor, and have an economics degree and a CPA, CA. We are most definitely in a bubble. The market is purely being driven by sentiment. Once/if that sours, this will turn ugly rather quickly in my estimation.
  • Lyn Smith | 20 May 2015, 06:58 PM Agree 0
    Time to return to your "real" career. I have been selling real estate for 30 years..... Things are heated and will calm. The result of a heated market does not necessitate a crash. Sheesh.
  • | 20 May 2015, 08:35 PM Agree 0
    Canada is a very desirable place to live; especially given the turmoil in many countries. Wealth is moving from many of those countries into Real Estate. Just look at athe changing demographics of the Buyers in many of the "hot" areas. In some countries (e.g China.. You can never own the land; the government has complete ownership.) Immigrattion is for the most part driving this market.
  • Martin | 20 May 2015, 10:45 PM Agree 0
    I personally believe that the Bank of Canada is making broad sweeping rules based on what is happening in Toronto and Vancouver which are having a negative impact on other areas of the country. It is well known that these two areas have a high immigration rate which is driving up the value of property.

    There are many regions experiencing a slow down in housing sales even though their local economy is good and debt levels are relatively low. Preventing a Buyer from purchasing a second property with less than 25% down (especially an income property) is hurting Sellers, investors and renters. With an investment property, as long as the numbers work, there is no reason why they can't go in with 5-10% down.

    Rules should be based on area or even postal code and not be so broad sweeping.

    We will soon see a major change in some areas of the Country driven by Baby Boomers, as they get older they will no longer need large two story homes nor want large property to have to maintain.

    We should start looking at rules where new immigrants land, live and work based on need. We as a Country need more immigration and should welcome others with open arms. People with good education behind them, able to support themselves, willing to work hard and contribute to society.

    With the Baby Boomer generation (tidal wave) we will require a much greater number of Health Care Professionals along with trades people to fill the huge amount of jobs that will be required over the next 15 - 20 years.

    I truly wish our government would look more seriously at the aging Baby Boomer issue and the huge impact they will have on housing, health care and jobs.
  • Linda Pinizzotto | 21 May 2015, 01:55 AM Agree 0
    As the Founder of the Condo Owners Association (COA) http://www.COAontario.com and a realtor for over 30 years, we believe that our federal government needs to step in to create new legislation throughout our country for all Provinces to follow. At provincial level our MPP's are providing horrible representation in Ontario with their new initiative to license Property Managers and not Property Management firms. The Ministry is only interested in listening to the advise of condo service trades who have an invested interest combined with their pocketbooks and in many cases show a direct conflict of interest The lack of experience and knowledge of our Minister of Government and Consumer Services who is unfamiliar with high density markets of major cities is Toronto. Condominium issues are country wide and they have similar problems, lack of governance, accountability and operations which result in high maintenance fees and inevitable price reductions in value. The condo market creates the highest stake in real estate values yet little concern by our government. We need long term sustainable condo communities Drastic market changes begin at lower levels and become a domino effect moving upwards if they are not selling and values are being reduced to sell. Rising utilities, service contracts, management, security, cleaning and reserve fund contribution carry the largest expenditure of any condo budget. If there is continuous kick backs, irresponsible spending, inexperienced Board Members and poor representation plus unlicensed representation by property management firms, this could force a market
    correction.
  • Brian, Ottawa | 23 May 2015, 04:51 PM Agree 0
    where outside of Toronto and Vancouver is the market hot? Here in Ottawa, I think in general, it's mostly been a flat market for a couple of years. I think Toronto and Vancouver are very unique markets and I'd hope that they wouldn't change lending rules because of those two regions
  • | 24 May 2015, 02:52 PM Agree 0
    Properties are indeed being bought with the intention of selling for a profit in a short time period especially in the "hot" markets. Numerous properties bought over the last couple of years have resold or are back on the market for huge gains. We are also seeing a significant increase in the number of properties where the paper is being sold or assigned at large increases within days or weeks of the first transaction. Not sure if this is an indicator of a bubble but I wonder if this kind of activity can continue for much longer.
  • Mark Ranger | 24 May 2015, 07:22 PM Agree 0
    Feels a lot like 2007 early 2008 to me. Historically the economy has tended to follow a 7 to 10 year cycle. Just sayin'.

    I think the most evident "black swan" on the horizon might be interest rates. Nothin' the fed can do about them as they are a product of the bond market not national monetary policy.

    It is what it is... deal with it ;-)
  • | 24 May 2015, 11:54 PM Agree 0
    i agree that there will not be a crash in real estate, as a matter of fact I told my clients a year ago that by the end of 2014, we will see a small dip in price about 5 % ,and by mid 2015 kind of balancing out .
    Annie Thai of Remax irealty Innovation
  • Cathy | 03 Jun 2015, 08:59 AM Agree 0
    The 1st time buyers are really out of the market according to house prices.
    Family with low income cannot afford to buy a place here in GTA or further out.
    Something should be done about this.
    Investors are buying to make profits but not thinking of 1st time buyers who are renting and want to get in the market.
    The interest rates are low but 1st timers can't afford the inflated prices.
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