{"id":21532,"date":"2016-08-31T15:24:50","date_gmt":"2016-08-31T20:24:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21532"},"modified":"2016-08-31T15:24:50","modified_gmt":"2016-08-31T20:24:50","slug":"fear-spreads-of-a-housing-crash-in-canada","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21532","title":{"rendered":"Fear Spreads of a Housing Crash in Canada"},"content":{"rendered":"
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Fear Spreads of a Housing Crash in Canada<\/a><\/h3>\n

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More Canadians sour on their Magnificent Housing Bubble.<\/strong><\/div>\n

Canadians have been gung-ho about their magnificent housing bubble, feeding it with an endless\u00a0willingness to pay every higher prices, even as regulators and international institutions issued warnings, as short sellers began circling, as\u00a0subprime liar-loan scandals made their reappearance<\/a>, and as a generation was getting priced out of the hottest housing markets in Canada, the metros of Toronto and Vancouver, and as locals came up with an acronym to describe what has fired up the market:\u00a0HAM \u2013 Hot Asian Money<\/a>.<\/p>\n

But the Vancouver housing bubble, the hottest even in Canada, hit rough waters in early summer. By July the first serious troubles appeared. Even as apartment prices soared 27% year-over-year and detached house prices 38%, overall sales plunged 19%, while sales of detached homes plummeted 31% [Vancouver Housing Bubble, Meet Pin<\/a>].<\/p>\n

Then on August 2, British Columbia\u2019s notorious 15% transfer tax on home purchases involving foreign investors took effect. Preliminary data\u00a0indicate<\/a>\u00a0that sales over the first two weeks in August plunged 51% year-over-year, with sales of detached homes down\u00a066%.<\/p>\n

And this flood of news on the Canadian housing bubble and speculations about a Canadian housing crash have now begun to slice into the previously imperturbable confidence of regular Canadians in their housing miracle.<\/p>\n

The housing related part of the Bloomberg Nanos Canadian Confidence Index just had its worst spill in the history of the monthly data series, going back to May 2013: The percentage of the respondents who expected a\u00a0decline<\/em>\u00a0in local home prices jumped from 12% to 20.5% in one fell swoop.<\/p>\n

The percentage of those who expected home prices to rise dropped 2.3 percentage points to 41.4%, and the percentage of those expecting little change dropped 5.3 percentage points to 36.3%.\u00a0Bloomberg<\/a>:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Fear Spreads of a Housing Crash in Canada More Canadians sour on their Magnificent Housing Bubble. Canadians have been gung-ho about their magnificent housing bubble, feeding it with an endless\u00a0willingness to pay every higher prices, even as regulators and international institutions issued warnings, as short sellers began circling, as\u00a0subprime liar-loan scandals made their reappearance, and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,130,406,2340,12581,1340,4254,4255],"class_list":["post-21532","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-china","tag-housing-bubble","tag-housing-market","tag-housing-market-crash","tag-vancouver","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21532"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21532\/revisions"}],"predecessor-version":[{"id":21533,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21532\/revisions\/21533"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}