Canadian housing slump deepens with first drop in values in decades

[Anonymous]

Any growth in the Canadian economy over the past four years has come as a result of buoyant US demand, but more importantly, but more importantly and more dangerously the most indebted consumers in the OECD. Canadian growth has been lowered to 1.5 per cent for this year. With investment falling thanks to the Trudeau and some premiers insane politicies, we better hope the Trump bump holds up. That is really the only thing we will have going for us moving forward.





Canadian home values fell last year for the first time in three decades amid falling prices in some of the country's priciest markets, even as debt burdens increased.



The value of residential real estate in Canada held by households dropped C$30 billion ($22.5 billion) in the fourth quarter to C$5.10 trillion, from C$5.13 trillion in the same quarter the previous year, Statistics Canada reported Thursday. The 0.6 percent decline is the first decrease in country-wide home values in data going back to 1990.



Households meanwhile saw their debt burdens rise at the end of last year, with the debt to disposable income ratio hitting a record 174 percent in the fourth quarter. The worsening reflects a sharp slowdown in economic growth at the end of last year.



Canadians are also spending a larger proportion of their income on servicing that debt. The debt service ratio -- the proportion of a household's income that goes to paying off principal and interest on debt -- rose to 14.9 percent in the quarter, the highest level since the fourth quarter of 2007.



In a separate report, the agency said new home prices fell 0.1 percent in January from a year earlier -- the first decline since 2009. While the index doesn't include condominiums, the weakness was driven by declines in the Toronto and Vancouver regions, which fell 1.5 percent and 0.3 percent respectively.

https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout">https://www.msn.com/en-ca/money/topstor ... ailsignout">https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout

That's a lot of wealth wiped out.

[Anonymous]

Any growth in the Canadian economy over the past four years has come as a result of buoyant US demand, but more importantly, but more importantly and more dangerously the most indebted consumers in the OECD. Canadian growth has been lowered to 1.5 per cent for this year. With investment falling thanks to the Trudeau and some premiers insane politicies, we better hope the Trump bump holds up. That is really the only thing we will have going for us moving forward.





Canadian home values fell last year for the first time in three decades amid falling prices in some of the country's priciest markets, even as debt burdens increased.



The value of residential real estate in Canada held by households dropped C$30 billion ($22.5 billion) in the fourth quarter to C$5.10 trillion, from C$5.13 trillion in the same quarter the previous year, Statistics Canada reported Thursday. The 0.6 percent decline is the first decrease in country-wide home values in data going back to 1990.



Households meanwhile saw their debt burdens rise at the end of last year, with the debt to disposable income ratio hitting a record 174 percent in the fourth quarter. The worsening reflects a sharp slowdown in economic growth at the end of last year.



Canadians are also spending a larger proportion of their income on servicing that debt. The debt service ratio -- the proportion of a household's income that goes to paying off principal and interest on debt -- rose to 14.9 percent in the quarter, the highest level since the fourth quarter of 2007.



In a separate report, the agency said new home prices fell 0.1 percent in January from a year earlier -- the first decline since 2009. While the index doesn't include condominiums, the weakness was driven by declines in the Toronto and Vancouver regions, which fell 1.5 percent and 0.3 percent respectively.

https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout">https://www.msn.com/en-ca/money/topstor ... ailsignout">https://www.msn.com/en-ca/money/topstories/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/ar-BBUMHtK?li=AAggNb9&ocid=mailsignout

That's a lot of wealth wiped out.

And maybe more to come..



I saw on Global Calgary this morning that Canadians are spending 14.9 per cent of their income servicing debt..



And they are still not getting caught up.

[JOE]

Live by the sword die by the sword I guess.

People in Vancouver have been taking on million dolkar mortgages for pidly little homes in very subpar areas of the city.



Like...do these folks know or can comprehend how much a million dollars is?!



A $100,000 is a lot of money. Even 10,000 is a lot of money.



But they're taking on a hige debt load which will put them into debt for 40 years or more



That kind of debt or follow them to the grave

[Anonymous]

We can't get our most valuable exports to international markets and international prices. Our economic growth is based entirely upon a robust US economy and unsustainable amounts of consumer debt and the latter is coming to an end.



Our combined ta bite is obscenely high and regulatory burden discourages investment. If Trudeau is reelected, living standards will fall considerably within a decade.



Debt grew faster than income



OTTAWA — The amount Canadians owe relative to their income ticked higher in the fourth quarter of last year as the growth in debt slightly outpaced income growth, Statistics Canada said Thursday.



The agency reported seasonally adjusted household credit market debt, as a proportion of disposable income, increased to 178.5% in the fourth quarter. That compared with a revised reading of 178.3% in the third quarter.



That means there was roughly $1.79 in credit market debt for every dollar of household disposable income in the fourth quarter.



Josh Nye, senior economist at royal Bank, said the figures highlight the challenge consumers face.



"it will take a long period of household incomes outpacing credit growth to deliver meaningful improvement in the debt-to-income ratio," Nye wrote in a report.



"We're not seeing that yet."



Nye noted the debt service ratio increased for a fifth consecutive quarter.



The household debt service ratio, the total obligated payments of principal and interest on credit market debt as a proportion of household disposable income, increased to 14.9% in the quarter compared with revised reading of 14.7% in the third quarter.



"While we expect the Boc won't be raising rates again until later this year, the dsr is still likely to edge higher in the coming quarters as homeowners renew fixed rate loans at higher interest rate," Nye wrote.

[Gaon]

We don't want to buy property in Vancouver in the near future. We are thinking of moving to a different part of British Columbia. We will take a trip to Kelowna, and Penticton this summer. If we like it, maybe we will move there.

[Frood]

Live by the sword die by the sword I guess.

People in Vancouver have been taking on million dolkar mortgages for pidly little homes in very subpar areas of the city.



Like...do these folks know or can comprehend how much a million dollars is?!



A $100,000 is a lot of money. Even 10,000 is a lot of money.



But they're taking on a hige debt load which will put them into debt for 40 years or more



That kind of debt or follow them to the grave

Even after home values halve or more.



I've said this before but speculative real estate investing and living beyond your means is a recipe for disaster.

[Anonymous]

House prices across Canada fell 5.2 per cent last month, year over year.



https://www.cbc.ca/news/business/crea-house-prices-february-1.5057838">https://www.cbc.ca/news/business/crea-h ... -1.5057838">https://www.cbc.ca/news/business/crea-house-prices-february-1.5057838

[Anonymous]

House prices across Canada fell 5.2 per cent last month, year over year.



https://www.cbc.ca/news/business/crea-house-prices-february-1.5057838">https://www.cbc.ca/news/business/crea-h ... -1.5057838">https://www.cbc.ca/news/business/crea-house-prices-february-1.5057838

This could very well portend the beginning of something that Trudeau hopes doesn't hit full force until after the election in October.