Login

Real Estate

Canada's 6 City Housing & The Plunge-o-Meter

Share on Facebook Tweet on Twitter

Posted by Brian Ripley - Canadian Housing Price Charts

on Tuesday, 12 December 2017 09:04

6cityh

Click chart for Larger Version 

In December 2017 Toronto metro SFD prices, 8 months since the March 2017 spike and peak price, continued slipping and to date have lost $207,895 or 18%. Vancouver prices are still defying gravity; FOMO and speculative pricing is still on. 

Anyone owning a detached house in the scorching hot Vancouver market is sitting on an unredeemed lottery ticket with time running out as buyers hibernate into the seasonal decline. The Bank of Canada interest rate up-moves is thinning the crowd even more.

 
In Calgary prices are labouring under the new Energy Sector 2.0 as the oil majors head for blacker fields; big money is fleeing Canada and has been for nearly 20 years, and on the street, Calgary buyers are avoiding condo units in favour of townhouses and especially detached properties.
 
​When earnings drop so do asset prices. ​Wage earners needed to buy a single family detached house in: Vancouver: 3.4, in Toronto: 1.9, in Calgary: 0.9 and in Montreal: 0.7

​It remains interesting to note that the combined average sum price of a Vancouver, Calgary & Toronto condo is currently 49% more expensive than a median priced Montreal SFD;  last month it was 52% (no typo). It was 51% in APR 2017, 49% in FEB 2017 and 41% in July 2016 at the Vancouver peak. Montreal has more listing inventory available for sale than any of the other 5 biggest metros in Canada and the lowest monthly absorption rate based on total listings and sales.

Screen Shot 2017-12-12 at 8.17.30 AM

In case you have forgotten the depth and velocity of the previous market reversal when Canadian real estate prices plunged in 2007-2008 (chart); householder equity vanished as follows:

  • '07-'08 Average Vancouver SFD lost $122,900, or 15.9% in 8 months (2%/mo drop)
  • '07-'08 Average Calgary SFD lost $92,499, or 18.3% in 18 months (1%/mo drop)
  • '07-'08 Average Edmonton SFD lost $78,719, or 18.5% in 21 months (0.9%/mo drop)
  • '07-'08 Average Toronto SFD lost $63,867, or 13% in 13 months (1%/mo drop)
  • '07-'08 Average Ottawa Residence lost $25,664, or 8.6% in 6 months (1.4%/mo drop)
  • '07-'08 Median Montreal SFD lost $6,000, down 2.6% in 6 months (0.4%/mo drop)

 



Banner

Real Estate

November Figures: Vancouver vs Toronto Single Family Prices

Share on Facebook Tweet on Twitter

Posted by Brian Ripley - Canadian Housing Price Charts

on Friday, 08 December 2017 06:58

vanchart

Larger Chart & More Analysis

In November 2017, Vancouver detached house HPI prices remained at resistance but strata prices continued ticking up through the July 2016 peak. The manic buying spree moved detached prices up 21.5% per year since the JAN 2013 low and are now up 121% in the last ten years.

chart-toronto 12 orig

Larger Chart & More Analysis

In November 2017 the Toronto housing sector prices remained depressed below their near term showoff spike highs as listing levels spike on seasonally slow sales; that and the winter tendency to hibernate is producing the right side of the "Eiffel Tower" price series.​

Compare Vancouver & Toronto Housing Chart HERE



Banner

Real Estate

Three Buy Signals for This Hated Sector

Share on Facebook Tweet on Twitter

Posted by Chad Shoop - The Edelson Institue - The Edelson Institue

on Tuesday, 05 December 2017 07:28

It seems like investors were writing off the real estate sector entirely.

With the rise of technology used to shop online, work from home and even go to school, real estate has been a hated sector.

But it’s a sector I have been a fan of this year, triggering gains of 15% and 17% in my Pure Income service.

That’s because even though I know the landscape for real estate is changing, I still see the crowds at the malls, the wait times at restaurants and the continued need for hospitals and health care facilities.

So the decline in values recently has looked like an opportunity to me.

But my personal experience or viewpoint doesn’t have anything to do with my recommendation today.

Instead, three separate computer-based buy signals are flashing bullish signals on the real estate sector, and I have a possible triple-digit opportunity for you.

Let me explain.

Three Buy Signals for the Real Estate Sector

Let’s start with the three buy signals on the sector before I give you the opportunity.

The first is the most basic, a price chart of the SPDR Real Estate Select Sector ETF (NYSE: XLRE).

shoopchart1



Read more...

Banner

Real Estate

Why Are the Homes of the Elite So Ugly?

Share on Facebook Tweet on Twitter

Posted by Bill Bonner - Diary of a Rogue Economist

on Friday, 01 December 2017 06:54

Yesterday, we saw the soul of America.

We drove by a house so imposing… so monstrously ugly… so laughably pretentious that we almost drove off the road staring at it.

On a suburban lot, it was as though it had fallen off the delivery truck and rolled into place, with no thought as to its surroundings.

It was a fake mansion!

Yes, dear reader, it is all fake – our money, our economy, our markets, our government… even our mansions.

20171125-dre-ad-01

Bitcoin Bonanza

On Tuesday, we made another 10% gain on our bitcoin “investment”… at a rate of about $4,000 per hour.

That’s more money in one day than we made during our first 10 years of work – combined.

Our coins, formerly worth nothing, are now worth more and more.

At this rate – a 10% rise versus the dollar each day – if you make a $10,000 investment, before Christmas, you will have $100,000 or more. Or less.

Possibly much less…

We toiled not, neither did we spin. We invented not. We earned not. Not a single morning did we get up at the crack of dawn to earn that money… nor a single night did we stay up late studying to make it happen.

Instead, it was as though we had walked through a casino and randomly yanked on one of the one-armed bandits. Ka-ching!

Nor did we learn anything… except that it’s a mad, mad, mad, mad, mad world – which we already knew! And if Civilization author Clive Bell is right, this is the best kind of money. We didn’t distract ourselves from “thinking and feeling.” We have no coal dust under our fingernails… and no hands calloused by years of hard work.

Easy Come, Easy Go

What to make of it? Is bitcoin money fake, too?

Tomorrow, we’ll have a report directly from our in-house expert, who is attending a conference on cryptocurrencies this week. More than 1,700 people paid $1,500 each to attend, representing the “smart money,” including a handful of newly minted millionaires still with adolescent pimples on their faces and bitcoins in their electronic wallets.

Meanwhile, here’s a thought… and a feeling. We invite dear readers to print this out and put it on their refrigerators:

Bitcoin is not an investment. It is not a speculation. It may or may not be a durable form of money; time will tell.

You may make a lot of money in the bitcoin bubble. Or lose it. Either way, don’t take it seriously. You should treat it like a dollar bill on the sidewalk. If you are lucky, you will pick it up before it blows away. If you are unlucky, you will chase it into the busy street and be struck by a crosstown bus.

Easy come, easy go – like an uninvited relative. Neither celebrate its coming… nor shed a tear at its departure.

What good is such money?

Coat on a Stick

Most of the world is so caught up in getting and spending money that it hardly has time to notice the leaves.

And maybe it is better off for it.

A man puts his head down… he keeps his eye on the ball and his shoulder to the wheel… and he’s ready to make money. Or war.

And then, by the time his hair whitens and he retires from making money, it is too late. His sclerotic brain can learn no more new tricks. It has no flexibility… and no time to develop real taste and judgement.

That’s why the “self-made man” may be the least civilized of the species.

He is too busy to think and feel. He is getting rich in his youth. And then, when he is spending… that’s where the disaster of his life becomes apparent.

He has not taken the time to prepare himself. He cannot appreciate style… or wit… or charm… or intimacy.

In retirement, when he can no longer do the only thing he knows how to do – make money – he is nothing more than a coat on a stick rambling around a house far too big for him, a laughingstock to the young… an embarrassment to the old.

Built on Credit

You can judge for yourself: Architectural Digest offers a list of “The Most Beautiful Home for Sale in Every State in America.”

Actually, it is just a list of houses for sale. Those that make the list are the most expensive ones. That is, for the most part, they are the houses of rich, “successful” people who have since gotten a divorce or otherwise moved on and now need to sell their dream homes.

The houses are more like nightmares.

Gaudy, bombastic, clumsy, awkward, hollow, appalling monstrosities. And they are all over America.

A Greek column here… an Italianate arch there… an English gable over the four-car garage… and a Versailles kitchen – they are an amalgam of hodgepodge.

We have been offended by McMansions for years. But the houses of the rich… these are what McMansions aspire to be. They are what you get when you put a hack architect together with a rich man. Neither of them has the sense of style, modesty, proportion, or charm you need to create a beautiful dwelling.

They’ve both been too busy earning and spending money; neither really knows how to build a home with grace or wit. All they can do is build a big, expensive one: a fake mansion.

What you get is a $16 million pile in Arizona and a huge palace for $45 million in Santa Barbara. One rich man builds; another buys. They advertise their wealth and bad taste simultaneously.

And here we see the whole flimflam exposed. These are the houses of the richest and most successful people in the country. They should proudly exhibit the finest that the “One Percent” can buy – the careful aesthetic judgment of the elite… the well-honed vernacular architecture of the world’s greatest empire at the peak of its power.

Instead, they are pathetic imposters. Too large to be livable. Too empty and monumental to be cozy. Too many angles… too many features… too much marble and stone – they are a “hormegeddon” to the domestic housing market. (See our book on the subject.)

They show not only the shallowness of its leading citizens, but also the emptiness of a late, degenerate, bubble-financed empire.

Regards,

Signature

Bill



Banner

Real Estate

High-End Real Estate Starting to Enter Crash Mode

Share on Facebook Tweet on Twitter

Posted by Martin Armstrong - Armstrong Economics

on Thursday, 30 November 2017 07:05

Druckenmiller-Stanley-estate

The high-end market in Connecticut is starting to decline. The hedge fund manager Stanley Druckenmiller bought his estate in 2004 for $23 million. He had it on the market for $31.5 million. The best offer he got was $25 million. He took the money and ran. Smart move! With a real estate tax of about $154,000 annually, looks like a break-even deal after 13 years.


The high-end real estate boom is now turning sour. We are looking at property values declining in London, Australia, New Zealand, Hong Kong, New York, and even Miami. The shift will now turn toward MOVABLE assets as capital departs from the fixed asset class.

....also from Martin:

Top 30 Risky Banks – Does it Really Matter?

The Royal Bank of Canada (RPC) has been added to the list of the top 30 banks posing the greatest risk.



Banner

<< Start < Prev 1 2 3 4 5 6 7 8 9 10 Next > End >> Page 1 of 38

Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Mark Leibovit Greg Weldon Ryan Irvine