It looks like China’s housing bubble is teetering, sales this fall down by half from the level of a year ago, and the Australian housing market has looked shaky all year, but that Canadian housing bubble seems nearly indestructible, charts like the one below from this Globe & Mail report now a real head scratcher for those of us south of the border.
Having just visited Calgary two months ago, I can attest to the residential areas looking a lot like Southern California in about 2005, but Toronto and Vancouver are apparently experiencing even bigger booms, as noted in the Globe & Mail report above, about the only question for residents being which big city will beat the other in price gains this year.
Last month, Toronto home prices rose 6.5 percent from a year ago, down from a 9.3 percent pace the month before, and with annual price gains in Vancouver recently falling from 20+ percent to 10.6 percent, a real battle is brewing. They note that “overall the market continues to appear healthy” and an economist offers only a mild cautionary note, words that sound eerily familiar to us in the U.S.
This blog post was republished with permission from Tim Iacono.