{"id":24085,"date":"2017-05-26T19:41:12","date_gmt":"2017-05-27T00:41:12","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24085"},"modified":"2017-05-26T19:41:12","modified_gmt":"2017-05-27T00:41:12","slug":"all-heck-breaks-loose-in-torontos-house-price-bubble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24085","title":{"rendered":"All Heck Breaks Loose in Toronto\u2019s House Price Bubble"},"content":{"rendered":"
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All Heck Breaks Loose in Toronto\u2019s House Price Bubble<\/a><\/h3>\n

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\u201cIt\u2019s fear.\u201d<\/strong><\/div>\n

During the first two weeks in May, according to preliminary data from Toronto Real Estate Board, home listings surged 47% from the same period last year even as sales plunged 16%. The average selling price dropped 3.3% from April \u2013 and this, after\u00a0a 33% year-over-year spike<\/a> in home prices in March and a 25% surge in April.\u00a0Something is happening to Toronto\u2019s blistering house price bubble.<\/p>\n

Canada\u2019s largest alternative mortgage lender, Home Capital Group, which focuses on new immigrants and subprime borrowers turned down by the banks, is melting down after a run on its deposits<\/a> that crushed its funding sources. The industry is worried about contagion.<\/p>\n

At the same time, the provincial government of Ontario announced\u00a0a slew of drastic measures<\/a>, including a 15% tax on purchases by non-resident foreign investors to tamp down on the housing market insanity that left many locals unable to buy even a modest home.<\/p>\n

It comes after Bank of Canada Governor Stephen Poloz warned<\/a> in April that home prices are in \u201can unsustainable zone,\u201d that the market \u201chas divorced itself from any fundamentals that we can identify,\u201d that there was \u201cno fundamental story that we could tell to justify that kind of inflation rate in housing prices,\u201d and that \u201cIt\u2019s time we remind folks that prices of houses can go down as well as up. People need to ask themselves very carefully, \u2018Why am I buying this house?\u201d\u2019<\/p>\n

A few days ago, Moody\u2019s Investors Service downgraded Canada\u2019s six largest banks on concerns over their exposure to the housing bubble and household indebtedness that ranks among the highest in the world.<\/p>\n

Now even the relentlessly optimistic industry begins to fret:<\/strong><\/h3>\n

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

All Heck Breaks Loose in Toronto\u2019s House Price Bubble \u201cIt\u2019s fear.\u201d During the first two weeks in May, according to preliminary data from Toronto Real Estate Board, home listings surged 47% from the same period last year even as sales plunged 16%. The average selling price dropped 3.3% from April \u2013 and this, after\u00a0a 33% […]<\/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":[103,15366,2340,4254,4255],"class_list":["post-24085","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-housing","tag-housing-market","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24085","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=24085"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24085\/revisions"}],"predecessor-version":[{"id":24086,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24085\/revisions\/24086"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}