Comments on: 5 Factors That Might Burst The Housing Bubble

By: housing advice

housing advice — Mon, 08 Feb 2010 11:08:00 +0000

With countries getting out of a recession and making money again they should take it easy and not go rushing into giving bad debt again and should give good rate that they can offer and go from there. There is an increase in unemployment but it should start to go down now with more economic stability and possible industrial up rise. One major thing with buying a home is don’t over stretch your financial ability, especially with changing interest rates.
housing finance advice´s last blog ..30 Year vs. 15 Year Mortgages

By: 73% Increase In November Home Sales - Canadian Finance Blog

73% Increase In November Home Sales - Canadian Finance Blog — Wed, 16 Dec 2009 10:03:15 +0000

[...] Now if interest rates are temporarily holding up the real estate market, there are two possible points of time in the future when prices will correct back down. One would be when interest rates go back up, possibly this summer. This would lead to a reduction in demand and therefore a lowering of prices. The other possibility is that if the majority of low rates are fixed for 5 years, then it may take until 2014 for the increased rates to cause homeowners to no longer be able to afford their mortgage and they will either need to sell or they will eventually default on their mortgage. This was also one of the points from William’s guest post detailing five factors that might burst the housing bubble. [...]

By: Top 5: November 2009 - Canadian Finance Blog

Top 5: November 2009 - Canadian Finance Blog — Tue, 01 Dec 2009 10:02:29 +0000

[...] Top 15 Ways to Save Money on Heating Your House. William, from ByTheOwner.com, gave us a look at 5 Factors That Might Burst The Housing Bubble. I’d like to continue to feature a guest post once every week or two as a way to present [...]

By: Carnival of Personal Finance #232 Thanksgiving Survival Edition

Carnival of Personal Finance #232 Thanksgiving Survival Edition — Mon, 23 Nov 2009 13:05:58 +0000

[...] @ Canadian Finance Blog from Canadian Finance Blog presents 5 Factors That Might Burst The Housing Bubble I read the title without seeing who wrote it and thought somebody was slightly behind the times [...]

By: The Financial Blogger » Blog Archive » Financial Ramblings

The Financial Blogger » Blog Archive » Financial Ramblings — Sat, 21 Nov 2009 20:27:15 +0000

[...] 5 factors that might burst the housing bubble by Canadian Finance Blog. [...]

By: Matt SF

Matt SF — Sat, 21 Nov 2009 16:32:18 +0000

I think the big metric to consider is to compare home price to median income. This data is rather hard to locate, but if you can find it for your market, it should tell you:

1) if there is a bubble
2) present location in the bubble (upside or downside)

The NY Times plotted this for a few major American cities, and man, it was powerful stuff.

http://www.nytimes.com/2009/04/22/business/economy/22leonhardt.html?_r=2

Not surprisingly, San Francisco, New York and LA lead US in the bubble driven markets.
Matt SF´s last blog ..New Frugality Appears to be More than Just a Fad

By: Shane

Shane — Sat, 21 Nov 2009 02:06:42 +0000

I hope deflation takes hold. I hope prices drop! I haven’t bought a house and will want to someday. However, these govt. policies and misguided belief that we ‘need’ about 2% inflation is a joke. It hurts 20-somethings like me and only helps the older generations. Who wouldn’t want to buy many things at a lower price? People were building and buying rather large homes in the 80s around $100,000. At 3% inflation compounded annually, that is roughly $180,000-$200,000 today. However, these homes are selling for $400,000+ now. Why do Canadians have this ingrained belief that home prices only rise? As if they’ll go up forever.

By: Financial Samurai

Financial Samurai — Wed, 18 Nov 2009 05:28:17 +0000

Interesting Tom. Perhaps the Canadian housing market really isn’t in a bubble?

What’s the average price / square feet in the most prime of areas in your neighborhood?
Financial Samurai´s last blog ..The Katana: Favorite Posts of The Week Ending 11/15

By: The Rat

The Rat — Wed, 18 Nov 2009 02:58:10 +0000

It’s scary when you see families have to pump in so much of their net worth into a home; particularly if they live in areas such as Vancouver or large centres where homes are easily >$500,000.

I get the impression that Canadians are at risk of the possibility of a housing bubble in the short to mid-term but for one reason or another, I feel as though our financial system is robust enough in a sense that we would not witness the same type of situation exhibited south of the border.

Regardless, it was an interesting thread!
Good stuff
The Rat´s last blog ..Do You Have Any Gold In Your Portfolio? Part II

By: Tom

Tom — Tue, 17 Nov 2009 16:04:32 +0000

FS,

Canada had a drop last fall as worldwide panic set in. But we didn’t have the same underlying mortgage crisis and now with the record low interest rates it’s picked up again. Basically we only had a slight dip and the bubble has started to build again.

The Globe and Mail wrote a similar story today, Canada’s housing rebound sparks fear of bubble.