Top Signs of A Housing Bubble

Rumours of a Vancouver housing bubble have persisted for years, but what does a housing bubble actually look like? Vice President and Portfolio Manager at Canaccord Genuity Bob Thompson takes a closer look at Vancouver’s red-hot housing market.

[@MarkGloverMasterson]

Vancouver's lower mainland real estate scene (and now several outskirt communities) is a Dr. X mutant never seen before in Canada. I have no idea, no one does, when this madness will end or if it will end. I do absolutely believe foreign investment (much of it caustic and illegally made) has been the prime culprit. Add to that unending low interest rates. Our Prov. gov't is an A1 prime pimp in all of this incl the last sitting gov't in Victoria. Clark should be absolutely ashamed along with her party and those who voted her in. Turning a blind eye when she very well knows about the housing massacre that is ongoing -- neighbourhoods pulled apart, ghost homes and apts, corrupt banksters, real estate agents, mortgage brokers, lawyers, accountants, etc. and a city that will slowly empty out as folks can't afford to live here, survive here, start a family or a career here. It is a massive FUBAR to the extreme. And shame on the present Fed LIBs and the prior ten year CONs too. They could all have done something to start a policy rolling forward to cap or control foreign investments, like Sydney, Australia finally had to do. But the BC Prov. and Fed gov'ts are addicted to the foreign investor monies. LNG is along while away -- real estate is the best bet they've got going! Sadly though this "best bet" has killed a once brilliant, real neighbourhood working class city. RIP VAN....

[@orangedac]

When private banks issuing sub-prime mortgages, house flippers and speculators profit on the way up while taxpayers are forced to pay for mortgage defaults via CMHC & Genworth on the way down, that is the definition of moral hazard. A privatization of profits and a socialization of debts.

[@anwarnayani5849]

Very nice and intelligent analysis bob Thompson

[@anwarnayani5849]

After 2 years you can see Vancouver market Bob Thompson was right

[@a88888888a]

I come from a family of real estate brokers and am also retired from the industry. If you enforce that any person (non-corporate) real estate transactions must call the embassy of the buyer, it doesn't matter if they are a citizen of canada. it's just to ensure that the money is not hot money. i.e, if a russian or iranian or chinese buyer buys any real estate we will call the russian, iranian or china embassy to confirm their source of funds. Being a resident or citizen doesnt mean you aren't helping to hide illicit china/russian/iranian/brazillian/etc...... money. Bad money drives out good money. If the above is done, the market will implode in the main cities of Canada, namely toronto and vancouver.

[@tudvalstone]

Yeah, what do you do about the hot canadian money.. you seem to ignore how many of our own citizens work cash-only, what embassy are you calling then? What you propose does not guard against illicit funds, it's just a way to snitch on those people.. what is your problem if China only allows a person to take out 50k a year, but they take 100k? Does that make it illegal money as far as we are concerned? What a low-life you are! Are you going to call Kim Jung-un when you meet a North Korean to make sure they are out of the country legally?

[@a88888888a]

Average after tax salary in Vancouver vs the average cost of a house. Get real. You are right. All money should be investigated as to its source. Even self employed individuals should be investigated. 50k per per in China per year..... Hahaha. They buy 20 million foliar condos in Hong Kong. You think they are moving 50k a year... Hahaha. They have a multitude of ways to move money out. Thru normal and grey channels methods. Even the low level government officials have streams of people moving 50k out for them 10 to 20 people at a time. Have you been to China? Where 95 percent of the people are poor? Have you seen the 2012 winter games? Where it took 6 years to accumulate enough snow so that they can steal the max percentage from that infrastructure project? Foreigners and immigrants buying whole floors of condos at a time... You think that's investment or hiding of illicit money?

[@tudvalstone]

a88888888a Why are you so concerned with illicit money, it's a communist country, they can decree what's illicit or not, often for political reasons, it may or may not be according to our laws. As long as their name is not on some black list of terrorists, drug smugglers or prostitution rings I don't really care if they paid taxes in China or they bribed somebody for a contract or some party boss alleges so. We were OK to do business with them (I was vocally against at the time) , send them our jobs, let them buy our products, companies... this is one more consequence of dealing with an inherently corrupt system, and a way to get some money back.

[@neilmason6550]

Forget the real estate market - that wave is over. The new thing to get into is Canadian Marijuana stocks...

[@parkerbohnn]

Neil Mason Now is the time to sell short the Canadian Marijuana stocks.

[@GearsDemon]

This market is now dying - Early 2020

[@parkerbohnn]

The surest sign of a housing top is when the people at the racetrack start talking about real estate. You see when the dumbest of the dumb knows something then that always marks a top just like when the shoeshine boys were giving stock tips just before the '29 crash.

[@mattr7035]

Increase property taxes on luxury homes by at least 2%, with relief provided for Canadian citizens AND revamp the Principal Residence exemption to be phased in over 5 years of ownership. You’re welcome.

[@dennismckeown5863]

2% is not enough, that won't deter the crooks more like 50%.

[@gordongoodman8342]

No.

[@macioluko9484]

Give me a B - B! You got your B you got your B Give me a U - U! You got your U you got your U Give me a B - B! You got your B you got your B Give me a B - B! You got your B you got your B Give me an L - L! You got your L you got your L Give me an E - E! You got you E you got your E It's impossible for it to level off. Just like it's impossible to stop a wrecking ball mid way in its swing. It has to got all the way to the other first (avg$ 85 000) before it can stabilize in the middle.

[@virginmary7989]

Buy tulip bulbs

[@nameless_no_name]

Buddy on the left is wearing a suit with hiking boots (while being a host on TV) ..... classy dude ..really classy! grow some fashion sense man!

[@stanislev]

The host with "hiking boots" does not belong to Euro-Atlantic civilization and "fashion sense" it is something he will never master. He is Hindu from India. The 3rd world sloppy place. That's all on this topic.

[@stanislev]

The other guy have wrong shoes, does not match with his dress. I think, that maybe there is not such things like Euro-Atlantic civilization. European there and Atlantic (American) just here.

[@patelvidhu4840]

Lower occupancy and lower rent.

[@accountantguy4771]

Hi guys! There's a video on my channel which goes through the warning signs of a housing bubble in detail. Take a look and let me know what you think.

[@milaschneider9916]

We live in a new era. Old price projections no longer apply. Housing will continue to rise.

[@tudvalstone]

This guy is completely oblivious to the lending standards in Canada. Over-leverage lol, he has no idea what he's talking about.

[@jbmop]

You disagree that one could be over-leveraged despite our lending standards here? If the bubble bursts, brought on by the continued slump in oil, weak manufacturing, too slow a transition to a non-resource based economy, and not enough innovation, a vicious circle may occur as the IMF pointed out. Lots a people are Leveraged high enough to be underwater or "Over-leveraged".

[@Joedirt5]

why color your hair white? lol canadians...

[@septiciden]

i really dont care-