{"id":8713,"date":"2015-06-02T07:19:27","date_gmt":"2015-06-02T12:19:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8713"},"modified":"2015-06-02T07:19:27","modified_gmt":"2015-06-02T12:19:27","slug":"house-prices-may-stay-high-in-canada-heres-why","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8713","title":{"rendered":"House prices may stay high in Canada: Here&#8217;s why"},"content":{"rendered":"<div class=\"story-headline\">\n<h3 class=\"story-title\"><a href=\"http:\/\/www.cbc.ca\/news\/business\/house-prices-may-stay-high-in-canada-here-s-why-1.3095421\" target=\"_blank\">House prices may stay high in Canada: Here&#8217;s why<\/a><\/h3>\n<\/div>\n<p class=\"story-deck\"><strong>Seemingly insatiable overseas demand is one of main reasons the gloom-mongers have been wrong<\/strong><\/p>\n<div>A friend of mine sold her Toronto house because prices were so high. She didn&#8217;t want to get caught in the downdraft.<\/div>\n<p>If you&#8217;ve been listening to all the warnings from foreign banks about a Canadian house price crash, that sounds smart.\u00a0But before you congratulate my chum\u00a0on her forethought, you should know she\u00a0made that decision several years ago.<\/p>\n<ul>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/average-house-price-in-canada-up-9-5-to-448-862-1.3075567\">Average house price in Canada up 9.5% to 448, 862<\/a><\/strong><\/li>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/ontario-house-prices-may-be-25-overvalued-due-to-condo-threat-1.3063707\">Ontario house prices may be 25% overvalued, Fitch says<\/a>\u00a0<\/strong><\/li>\n<\/ul>\n<p>Of course, since then Toronto house prices have only continued their\u00a0dramatic\u00a0rise. Although Toronto and Vancouver lead the way with soaring real estate, prices in\u00a0many\u00a0<a href=\"http:\/\/www.cbc.ca\/news2\/interactives\/housing-canada\/\">other Canadian cities<\/a>\u00a0continue to rise.<\/p>\n<p>In the face of a series of recent reports of houses selling for hundreds of thousands of\u00a0dollars over their\u00a0asking prices,\u00a0I thought it a good time to look at why all the gloom-mongers have been wrong, and why they may still be wrong. At least for a while yet.<\/p>\n<ul>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/canadian-house-prices-35-overvalued-economist-magazine-says-1.3040698\">Canadian house prices 35% overvalued, Economist magazine says<\/a><\/strong><\/li>\n<\/ul>\n<p>The question is no small matter for older boomers trying to capture the value of their homes.\u00a0For most Canadians a home\u00a0is their single biggest asset.<\/p>\n<p>People heading into retirement could have their plans seriously upset if house\u00a0prices fell by 63 per cent, as\u00a0<a href=\"http:\/\/business.financialpost.com\/news\/economy\/deutsche-bank-reveals-7-reasons-why-canada-is-in-serious-trouble-starting-with-a-63-overvalued-housing-market\">one international bank projected<\/a>earlier this year.<\/p>\n<p>On the other hand, if prices continue to rise by nearly 10 per cent a year, as they did this year, it would be difficult for boomers to find a more lucrative, tax-free\u00a0income on an investment worth up to a million dollars.<\/p>\n<p>Boomers aren&#8217;t the only ones watching this market. New buyers would be\u00a0even worse\u00a0affected.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>House prices may stay high in Canada: Here&#8217;s why Seemingly insatiable overseas demand is one of main reasons the gloom-mongers have been wrong A friend of mine sold her Toronto house because prices were so high. She didn&#8217;t want to get caught in the downdraft. If you&#8217;ve been listening to all the warnings from foreign [&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":[103,5895,1583,2340,803,1340],"class_list":["post-8713","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-foreign-ownership","tag-housing","tag-housing-market","tag-toronto","tag-vancouver"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8713","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=8713"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8713\/revisions"}],"predecessor-version":[{"id":8714,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8713\/revisions\/8714"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}