{"id":46244,"date":"2019-05-19T09:56:54","date_gmt":"2019-05-19T14:56:54","guid":{"rendered":"https:\/\/olduvai.ca\/?p=46244"},"modified":"2019-05-19T09:56:59","modified_gmt":"2019-05-19T14:56:59","slug":"the-most-splendid-housing-bubbles-in-canada-deflate-further","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=46244","title":{"rendered":"The Most Splendid Housing Bubbles in Canada Deflate Further"},"content":{"rendered":"\n

The Most Splendid Housing Bubbles in Canada Deflate Further <\/a><\/h3>\n\n\n\n

Vancouver prices drop. Toronto down 3.7% from peak, flat for 10 months. Winnipeg plunges most since at least 1990. Quebec City flat for 6 years.<\/strong><\/p>\n\n\n\n

In Greater Vancouver, BC, Canada, house prices fell 0.4% in April from March, the ninth month in a row of month-to-month declines, according to the Teranet-National Bank House Price Index<\/a>. The index is down 4.7% from the peak in July 2018, the sharpest nine-month decline since July 2009. And it\u2019s down 2.8% from April last year. One of the most splendid housing bubbles in the world is now deflating before our very eyes, after prices had skyrocketed 316% from January 2002 to the peak in July 2018 \u2013 meaning prices had more than quadrupled in 16 years:<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Teranet-National Bank House Price Index tracks single-family house prices, based on \u201csales pairs,\u201d comparing the sales price of a house in the current month to the last sale of the same house years earlier (methodology<\/a>). Using \u201csales pairs\u201d eliminates the issues that affect median and average price indices but has its own limitations. These median and average house prices, which are much more volatile, are now showing much sharper price declines for Vancouver<\/a>.<\/ins><\/p>\n\n\n\n

Because the Teranet index uses a similar methodology of \u201csales pairs\u201d as the S&P CoreLogic Case Shiller index for US housing markets, the indices produce comparable metrics. So let\u2019s compare Vancouver\u2019s housing bubble to the\u00a0also deflating housing bubble in the San Francisco Bay Area<\/a>. Splendid v. Splendid. The chart below shows the data of Vancouver (black columns) and San Francisco (red columns), with both indices converted into \u201cpercent change from January 2002.\u201d<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

As the chart above shows, Vancouver\u2019s housing market dipped briefly during the Financial Crisis while San Francisco\u2019s market went into a hard four-year downturn, as the US housing bust morphed into the Mortgage Crisis that contributed to the Financial Crisis.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Most Splendid Housing Bubbles in Canada Deflate Further Vancouver prices drop. Toronto down 3.7% from peak, flat for 10 months. Winnipeg plunges most since at least 1990. Quebec City flat for 6 years. In Greater Vancouver, BC, Canada, house prices fell 0.4% in April from March, the ninth month in a row of month-to-month […]<\/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":[2340,803,1340,25906,4254,6118],"class_list":["post-46244","post","type-post","status-publish","format-standard","hentry","category-economics","tag-housing-market","tag-toronto","tag-vancouver","tag-winnipeg","tag-wolf-richter","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46244","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=46244"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46244\/revisions"}],"predecessor-version":[{"id":46245,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46244\/revisions\/46245"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}