{"id":7861,"date":"2015-05-06T05:39:05","date_gmt":"2015-05-06T10:39:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7861"},"modified":"2015-05-06T05:39:05","modified_gmt":"2015-05-06T10:39:05","slug":"high-end-real-estate-in-canada-in-frenzied-bubble-blow-off","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7861","title":{"rendered":"High End Real Estate in Canada in Frenzied Bubble Blow-Off"},"content":{"rendered":"<h3 class=\"art-postheader\"><a title=\"Permanent Link to High End Real Estate in Canada in Frenzied Bubble Blow-Off\" href=\"http:\/\/www.acting-man.com\/?p=37244\" rel=\"bookmark\">High End Real Estate in Canada in Frenzied Bubble Blow-Off<\/a><\/h3>\n<p><strong>Throwing Caution to the Wind<\/strong><\/p>\n<p>We have discussed the dangerous housing and consumer credit bubble in Canada in these pages on several previous occasions in some detail (see \u201c<a href=\"http:\/\/www.acting-man.com\/?p=28004\">Carney\u2019s Legacy<\/a>\u201d and \u201c<a href=\"http:\/\/www.acting-man.com\/?p=36181\">A Tale of Two Bubbles<\/a>\u201d as examples). Since we first wrote about Canadian real estate, the bubble has continued to grow with nary a pause. Why are we calling it a bubble? The gap between incomes and house prices is widening ever more, and has been far above what is considered normal for several years already.<\/p>\n<p>This decline in affordability is the result of monetary pumping and ultra-low administered interest rates imposed by Canada\u2019s central bank. Moreover, the boom is subsidized by a giant state-owned mortgage insurer, an institution that has the potential to severely impair the government\u2019s finances once the bubble bursts.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-37247\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/05\/van-twilight-1024x319.jpg\" alt=\"van-twilight\" width=\"700\" height=\"218\" \/>Vancouver skyline at night \u2013 no doubt a nice place, but a bit pricey.<\/p>\n<p>Photo credit: Mohsen Kamalzadeh,\u00a0<a href=\"https:\/\/imaginion.wordpress.com\/2013\/01\/31\/dark-and-bright-7-skyline\/\" target=\"_blank\">imaginion.wordpress.com<\/a><\/p>\n<p>The housing bubble is most pronounced in big cities like Toronto and especially Vancouver. Trophy properties are selling like hotcakes to people who evidently don\u2019t care much about money. In fact, the frenzy proves that the demand for money has long been overwhelmed by the huge growth in its supply among the richer strata of society<\/p>\n<p>A friend has pointed us to a short\u00a0<a href=\"http:\/\/bc.ctvnews.ca\/hot-sale-shaughnessy-home-sells-for-2m-over-asking-1.2354820\">video at CTV News<\/a>\u00a0about a recent high end property sale in Vancouver that is quite remarkable, to say the least.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>High End Real Estate in Canada in Frenzied Bubble Blow-Off Throwing Caution to the Wind We have discussed the dangerous housing and consumer credit bubble in Canada in these pages on several previous occasions in some detail (see \u201cCarney\u2019s Legacy\u201d and \u201cA Tale of Two Bubbles\u201d as examples). Since we first wrote about Canadian real [&hellip;]<\/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":[942,103,406,2340,421,1154,431,2151],"class_list":["post-7861","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada","tag-housing-bubble","tag-housing-market","tag-income","tag-interest-rate-policy","tag-interest-rates","tag-monetary-easing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7861","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=7861"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7861\/revisions"}],"predecessor-version":[{"id":7862,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7861\/revisions\/7862"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}