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Tag: real estate prices Canada

Irrational exuberance

Irrational Exuberance by Robert J. Shiller I just spent some hours reading this book about behavioral finance. It’s quite a good read if you have not been exposed to the topic before. It discusses how we get into these “bubble” scenarios in financial and other markets such as real estate. For me, it was really a summary of the rather obvious things that we can see by just looking at what goes on in the […]

The Motley Fool and Toronto real estate

I have been bearish on Toronto real estate for a while. The moon and the stars are lining up against the market. Affordability, new mortgage rules and the insane amount of debt that Torontonians carry. Here is an article that makes me wonder from the Motley Fool: Will 2017 Finally Be the Year Toronto’s Real Estate Bubble Bursts? Now I am not so sure. The Motley Fool is a tip sheet, in my opinion, selling products […]

Canada’s housing bubble makes America’s look tiny

Here is an interesting analysis in Maclean’s magazine discussing the Canadian housing situation with respect to the continual call for a bubble-namely that housing prices will drop precipitously at some point or another. The problem with all these analyses There is, however, a problem with many of these analyses. Case in point that there are some institutional differences between Canada and the United Sates. Most importantly that the Government of Canada stands behind a large proportion of […]

New cooling measures for the real estate market

Finally, the Government of Canada has stepped in to try and cool the Canadian real estate market. As usual, the real estate agents either claim that these moves will damage the market while others say that it will have no effect. Pick the way that you think it’s going to go. What are my thoughts? It’s quite remarkable to see the spin that the government has put on this. These changes were easy to implement […]

Should we tax foreign real estate buyers?

Should we tax foreign real estate buyers? Benjamin Tal’s writing on this issue comes to a number of unsubstantiated conclusions. One of them is that the main motivation foreign investors in Canadian real estate is not the flipping of the property, but merely to look for a safe haven for their money. Unfortunately, this has little to do with the issue. Their motivation is one part of the equation. Vacant real estate in markets that are short […]

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