My mate Mr Semven suggested
semven wrote:It`s different here
No Mr Semven, it isnt different. Just the mania has been massive, to the point that only those thinking clearly can identify that the longer this goes on, the larger will be the damage.
Ben Rabidoux Reviews the Status and Implications of the Vancouver RE Market as recounted over at Vancouver Real estate archive.
Couple of great graphs that smash the emotion to pieces.
Some on here have argued that Vancouver didnt have inflation. But one of the key necessities of life went through the roof. If the increase in housing prices had been correctly factored into inflation, your interest rates would 8%-10%. The fact it isnt, shows how far the system is broken.
House price to rent index is now at 3x standard deviations. What does that mean. Its like an elastic band, stretched to its maximum. Its coming back and coming back fast and its going to sting!
And what this has always been about. Masses of debt driving prices up!
Check out the full article here.
Vancouver housing in full correction mode: Implications for Canadian banks
Makes very sobering reading for those who "think its different here".