September 15, 2010, 9:58 am

Canadian Housing Market Bubble to Burst… Really?

by: The Financial Blogger    Category: Properties
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I rarely do this, in fact, I never write a second post during the day unless there is a modification in the interest rate. But today, I just read an article about the Canadian housing market and I was thinking of all your reaction towards my article on the (possible) Canadian Housing Market Bubble.

According to the CREA (Canadian Real Estate Association), housing sales went up in August by 4.1%. Interesting enough, the activity in both Ontario and British Columbia (2 hot Canadian Housing market) was in good shape.

So housing prices are slightly going up and sales are following the same trend. Interesting enough in a market where we forecast interest rate hikes, isn’t?

I don’t think we will see the Canadian housing market going up like crazy but I think that reaching a balance between sellers and buyers is more likely to happen. Looking forward to the end of 2010, I think the housing market will continue to cool off slightly and smoothly avoiding the abyss of a bubble burst.

 

What is your take on those new housing stats?

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Comments

Sounds like a little more number fudging to me TFB….

The number of homes sales went up not the price of a home, it still appears supply is higher then demand. This is probably people who are jumping the gun on falling prices.

i.e. oooo this house dropped 5K in price lets hurry and grab it now!!

I fall somewhere in the middle, I admire your optimistic “cool off slightly” and a bubble burst would make the entire country too poor. I would forcast a “redical correction”

These prices are not sustainable vs house hold income.

[...] The Financial Blogger says that the housing bubble is not going to burst. [...]

Dear TFB,
I have started a Canadian Real Estate Investing Blog Carnaval, I would be honored to have you submit your favourite real estate post.

All you have to is to submit your link to canadianrealestatecarnaval@gmail.com then link back.

The first edition will be going live on September 30th, I look forward to your submission.

by: The Financial Blogger | September 18th, 2010 (6:43 pm)

@ Ottawa guy,
I like being optimistic ;-)

I think that a bubble burst is only possible in specific cities (Vancouver, Toronto, Calgary for example) but I don’t beleive in a country wide housing depression.