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Mortgage Broker News | 11 May 2016, 08:15 AM Agree 0
McLean’s published what may be the most comprehensive take on foreign investment to date, and its grim view is one that a veteran broker finds slightly dubious
  • Ron Butler | 11 May 2016, 10:01 AM Agree 0
    Dustin is correct the data is inaccurate. Here is something that is a fact however: 25% year on year increases in house prices is simply nuts. Stop and think what happens if it continues for 3 years in a row. One thing is certain, in a highly distorted market there will be a day of reckoning.
  • JSydneyH | 11 May 2016, 10:01 AM Agree 0
    This is just another tactic to sell more papers and magazines. The 'bubble is going to burst' has run its course and no one believes them or is surprised to hear it anymore. Sales have slowed so its time to create another reason to sell advertisers.

    This too shall pass. Like Justin stated in the article, it may be too early to suggest anything.
  • Susie | 11 May 2016, 10:04 AM Agree 0
    I completely agree with Dustin. It's ridiculous how some of these numbers are being determined.
  • @kiltedbroker | 11 May 2016, 10:18 AM Agree 0
    I heart DW and his delivery of straight goods. Every. Single. Time.
  • R Mac | 11 May 2016, 10:29 AM Agree 0
    ...why does Woodhead think the market has gone "crazy" (over the past 5 months in particular)? Did the Chinese stock market take a big downturn in January of this year and that's when the frenzy really started to heat up? Or, is it because the people employed and live in Canada have all received big pay raises from their jobs at Starbucks and now they can afford homes? Foreign investment is the obvious factor in the rise of our real estate prices and Chinese foreign investors are leading the charge. Once all the "investors" parking their money in our real estate see a slight downturn in our market they will pull out and hold that investment in cash and then all hell will break loose. Our market will very quickly become a buyers market and housing will come back down to reality. Our housing market is strong right now because of a strong housing market which is a recipe for disaster. Strong housing markets should be a result of strong employment in a given area (industry), and the lower mainland has it backwards right now...but nothing lasts forever and time heals all wounds and our market is wounded right now!
  • Tim | 11 May 2016, 10:34 AM Agree 0
    Unfortunately, sensationalism sells magazines.
  • 2D from TO | 11 May 2016, 10:14 PM Agree 0
    Another place to look is to look at the rentals on MLS.
  • Christina | 13 May 2016, 10:17 AM Agree 0
    My question is what percentage of sales to foreign interests can cause a run up on housing prices? Does 1% cause a run up in prices? Or does it have to be 10%, 20% or 50%? We all agree that higher demand causes price increases, but we don't know the tipping point. I wonder if the tipping point is lower than would be intuitive. The reason I think this might be the case is that foreign interests (it seems) are willing to pay well over appraised value. This causes a domino effect. My take home message is that even if numbers from foreign purchases become accurate, it will still not tell the whole story. Data collection and analysis will be challenging.
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