Brexit, Blame Games & Bubble Prevention

Pundits believe Brexit is a boon to our real estate market …

Brexit and foreign money drive Canadian commercial property to all-time high

Financial Post – Jul 5, 2016
Canadian commercial property has never been worth this much, according to a new report that says Brexit and foreign investment are driving the market. CBRE Canada, a commercial real estate company, says Canada’s reputation as a “safe haven” has …

Or maybe not?

‘Panic’ Brexit Withdrawals Freeze $23 Billion Property Funds

Image Source

Bloomberg– Jul 7, 2016
During the financial crisis of 2007 and 2008, real estate funds were … funds and Canada Life froze four funds totaling 450 million pounds.
Regardless, Vancourites and Torontonians (foreigners inluded, of course) are gobbling up real home for sales without even seeing the properties!
The Home Inspectors Association isn’t amused … They wanted the authority to make home inspection mandatory. Madness, eh?

Hot Vancouver real estate market needs post-bid ‘cooling off’ period, says association – ‎Jul 5, 2016‎
The Home Inspectors Association of B.C. is calling for the province to implement a mandatory post-bid “cooling off period” so prospective home buyers can get a property inspected before they purchase it.
Meanwhile, blame games have started on the rapidly accelerating home prices that is total madness, to sum it up in one word … Liberals and municipalities are the main culprits, so said the urban planning experts.

New report says cities, municipal restrictions share blame for today’s housing prices

Financial Post – Jul 7, 2016
Also out Thursday is a new report from Sotheby’s International Realty Canada that suggests the luxury end of the housing market is being dominated by sales of houses of $4-million or more in Vancouver and Toronto, something else that is driving up

Blame Ontario Liberals for runaway home prices: urban planning expert

Image Source – ‎Jul 6, 2016‎
Rapidly accelerating home prices in the Greater Toronto Area have in large part been caused by Ontario government policy, one urban planning expert argues.
It appears those in the mortgage business are extremely worried about the hidden timebomb called “Housing Bubble”.
Understandably these deep pockets stand to loose the most should the market collapses … They wanted real serious actions, not just playing with sub-zero interest rate, or asking banks to implement minimum downpayment. All these measures are outdated, too little, and totally ineffective to house flippers (but bona fide Canadian wage-earning-house-buyers really hard hit).
The financiers wanted authorities to punish house flippers,  wage Jihad wars against foreign crooks?
Interesting development, but a slippery slope for the Liberals.

Authorities should consider stronger steps re: housing bubble

Mortgage Broker News – ‎6 hours ago
‎The seemingly unstoppable overheating ofCanada’s residential property market is making the most in-demand cities more difficult places to live in for the long term, and authorities should consider taking stronger steps to address the problem …
Liberals have started to look at the situation very seriously, so said our lawmakers: –

Canada moves to prevent housing bubble in major cities ‎Jun 24, 2016
His comments followed warnings by Canada’s central bank and the Organization for Economic Cooperation and Development (OECD) about a possible housing bubble. According to their respective real estate boards, Vancouver prices climbed 30 percent in …
Indeed, actions have started to emerge …

OSFI warns banks to have more scrutiny in their mortgage business – Jul 7, 2015
Canada’s top banking regulator is telling the big banks to pay more attention to who they are giving mortgages to, and warning them that it is stepping up its scrutiny of their loan books.
Canada’s top banking regulator tightens scrutiny of mortgage lending practices amid soaring home prices
Regulator Tightens Canada Mortgage Oversight Amid Added Risk 
Also, it appears talks alone is already having some effects on Vancouver market …

Single-family home price declines in Vancouver: Trend or timing?

CTV News – Jul 7, 2016
Dan Morrison, president of the Real Estate Board of Metro Vancouver, says inventory has crept up slowly over the past four months.
The Liberals further promised not only they are serious, they will be very transparent … No hanky-panky business

Transparency to come with digital age?

Bancroft This Week – Jul 7, 2015
The province said the CDO will lead the Government of Ontario to become the most open, transparent and digitally connected government in Canada. … to investigate affordable education and the success of skilled workers, a Ministry of Economic
In the past, real estate agents will threaten potential home buyers to make purchase decision immediately, because the sky is falling down ! Sorry, I mean financing will be more difficult, if not impossible. Interest will go up while house price will just continue to fly.
And history suggests upon hearing the government is about to intervene, folks will be persuaded by rush to buy up just about anything … From super villas, upper fixers, cookie-cutter condos, to even sheds.
Looks like Liberals need a new approach  …
Prediction: Another prosperous year for those in the real estate business.
Wondering what our real estate agents make … ?

Real estate commissions: What does it cost and who really pays?

Toronto Sun – Jul 6, 2016
Stephen Moranis, B.Comm., MBA, FRI, CMR has been active in the North American Real Estate Industry for more than 40 years. He is a former President of the Toronto Real Estate Board and a former Director of the Canadian Real Estate Association.

As for foreigners keen to explore Canadian real estate …

Attention: Foreign Investors, or potential home buyers from abroad,

Keen to move to Canada? Here are some things to consider

BBC News – Jul 7, 2016
Soaring housing prices in the cities of Vancouver and Toronto are making ownership unattainable for more and more people. And concern is growing that the housing bubble could crash.

Welcome to Canada.