Canadian buyers flood USA housing market

In Canada we never got the same collapse of real estate, so the prices for a while were a little unbelievable for people. The Canadian dollar was also at about 1.05 to the US. Now our market is sagging and the dollar is at .95 so suspect that the huge surge of Canadian buyers will have subsided a bit. But then winter will always suck.

The key to front running, erichobucketshopboy, is to actually buy before the pump. So LIC lifer, did you buy more RE? Financing ain't getting cheaper. Ya better go 10 day ARMs.

I'm feeling like mcd for lunch.

Ottawa: not yet. Ever read Garth on Canadian housing bubble poppage?

Isn't that the crazy ex-reform guy? Have not. And in terms of a bubble the air has all slowly been let out when the government changed all the mortgage rules, which has led to no growth last few years.

Ottawanyc, you understate the loonies rise. Its gone from US$0.63 in 2002 to as high as over $1 recently, and is down to $0.96 - but still, that means even with no price appreciation, a house in Vancouver in USD terms went up 50% in a decade (or less - the all time high was 2007) versus Seattle. Etc. So to Canadians over 30 or so, everthing in the US still looks super cheap just because of exchange rate.

On top of that, Canadian home prices have done so much better. So I imagine lots of Canadians can take out home equity loans in loonies, convert them to dollars, and buy homes all cash in say Phoenix or Miami.

> On top of that, Canadian home prices have done so much better. So I imagine lots of Canadians can take out home equity loans in loonies, convert them to dollars, and buy homes all cash in say Phoenix or Miami.

Kind of like a RE carry trade, eh?

In any event there are currently more Condos under construction in Toronto than in all of North America combined. I think the collapse or correction of that particular market is coming.

"In any event there are currently more Condos under construction in Toronto than in all of North America combined."

You may be correct, but I'd love to see an article stating this. Its interesting. THanks.

That's true Jason, but over a decade ago. I remember a few years back when the dollar first went above par - I think it got to about 1.10 at one point - and that was the first time you really heard people talking about coming down to buy cars and stuff. And for sure some people did incredibly well and had cash to burn. A lot of those people - who are now retirees - likely bought [places as winter homes. More recently though there were a lot of people who bought as investments.

Situation was a lot different for younger people who couldn't buy because of the large increases in home prices, so you started to get the 40 year amortization loans with 10% down and stuff. Government then stepped in and changed it so you could only have 25 or 30 years and you needed large down payment.

So now you have all these condos that are targeted at younger purchasers who can't buy them because of the new rules and others can't sell their starter homes so market is not doing well at all. I wish I had sold my place in Ottawa, as it has lost value and there is just more stuff being built with no demand.

Toronto has an absurd amount of condos being built and a lot of the rule changes the government put in place were in part to prevent the speculative buying that was happening. But I think this is more of a sub-market. So people could lose a lot if they invested in these condos, but overall prices will be more or less normal. Toronto might do ok though as Asians love buying property and I think half of TO is now Asian or something. (Note when you watch HGTV)

http://www.thestar.com/business/real_estate/2013/06/13/overpriced_toronto_condo_market_a_risk_to_economy_says_bank_of_canada.html

Jason: see towards end of article.

http://blogs.wsj.com/canadarealtime/2013/05/06/toronto-new-condo-sales-drop-55-in-first-quarter/

My bad: they have the most under construction in NA (but not combined).

This whole thread is offensive.

I heard Toronto was flooded recently. Actual flooding. And soon that will all turn to ice in order that everyone can play hockey.

I was in Toronto last summer and there is an insane amount of construction. even the suburbs are jam packed.

All that construction using cheap Canadian labour, those buyers should beware.

Toronto mayor says he 'smoked a lot' of marijuana, still mum on crack
From ASSOCIATED PRESS
Last Updated: 5:20 PM, August 28, 2013
Posted: 5:18 PM, August 28, 2013
http://www.nypost.com/p/news/international/toronto_mayor_says_crack_smoked_HL5pT913H3f5D94VbVJMDL

Its because the leader of our opposition party came out and said that he only smoked a little pot; only once with the prince of pot.

>he only smoked a little pot

Did he play hockey?

Redundant question HB. But I am sure when his Dad was off with Steisand, margot kidder, Kim Cattrell or Liona Boyd, he had time to play hockey.

HB: So now the mayor of Canada's biggest city admits that he did smoke Crack. BUT, he was so drunk he can't really recall if he did, so I guess that is fine eh? http://www.thestar.com/news/crime/2013/11/05/rob_ford_yes_i_have_smoked_crack_cocaine.html

http://www.washingtonpost.com/opinions/rob-ford-torontos-crack-smoking-mayor-finally-a-famous-canadian-politician/2013/11/08/92ce9812-47f9-11e3-b6f8-3782ff6cb769_story.html