Comments on: US Federal Reserve Indicator Shows Canadian Real Estate Is Way Overpriced

By: US Federal Reserve Indicators Show Canadian Real Estate Buyers Still "Exuberant" – Homes and Condo Mississauga

Sat, 28 Apr 2018 04:20:11 +0000

[…] Note: We have explained this in a little more detail . […]

By: US Federal Reserve Indicators Show Canadian Real Estate Buyers Still "Exuberant" | Better Dwelling

Fri, 27 Apr 2018 13:58:01 +0000

[…] Note: We’ve previously explained this in slightly more detail. […]

By: Canada

Canada — Wed, 14 Mar 2018 18:54:07 +0000

[…] 1. US Federal Reserve calling Canadian real estate buyers “exuberant” […]

By: The BIS Just Flagged Canada For A Financial Crisis Because Of Real Estate And Debt - munKNEE dot.com

Tue, 13 Mar 2018 15:12:14 +0000

[…] 1. US Federal Reserve calling Canadian real estate buyers “exuberant” […]

By: The BIS Just Flagged Canada For A Financial Crisis Because of Real Estate and Debt | Better Dwelling

Mon, 12 Mar 2018 12:11:55 +0000

[…] real estate debt has been the primary driver of three of the four EWIs. This warning follows the US Federal Reserve calling Canadian real estate buyers “exuberant,” UBS ranking Toronto as the largest bubble in the world, and IMF expressing concerns to senate. […]

By: Toronto and Vancouver Real Estate Showing “Excessive Exuberance” Shows CMHC Indicator | Better Dwelling

Wed, 14 Feb 2018 13:55:34 +0000

[…] for periods of rapid price escalation beyond fundamentals. It’s modeled after the indicator the Federal Reserve Bank of Dallas created to measure housing exuberance after the Great Recession. The big difference is the current CMHC iteration does not tell you how exuberant we are. It just […]

By: Canadian Home Prices Exceed Critical Value, New Survey Shows | Point2 Homes News

Tue, 31 Oct 2017 15:03:31 +0000

[…] exuberant”. This generally happens when buyers pay a premium on a commodity. According to Better Dwelling, most of the times this type of behavior is driven by herd mentality and leads to what is commonly […]

By: Paul

Paul — Tue, 31 Oct 2017 14:24:48 +0000

In reply to Peter. Peter, the land is the thing that crashes the most. And that's coming from a land owner.

By: Peter

Peter — Mon, 30 Oct 2017 16:23:25 +0000

Assuming land has been acquired, it costs $200/sqare foot to build a house with very nice finishes. If you scrimp on finishes you are looking at $150/square foot.

So do the math on the cookie cutter semi in Aurora for $700k. Assume 1800 square feet, that’s $270k to build. How much is the land value of the semi? $300k? At that very low land cost it would be a $570k cost to build.

Point is, if prices are out of whack, how low coukd prices possibly go given houses are so expensive to build.

By: The Gap Between Canadian Real Estate Prices and Homeowner Expectations Is Shrinking | Better Dwelling

Mon, 30 Oct 2017 13:26:15 +0000

[…] expectations have tapered since 2011, they were still very high. There’s increasing evidence that buyers were not pricing on fundamentals. Now we have a little more insight into what they were paying – a homeowner’s estimated […]