China owns the Canadian real estate market: Chinese account for one-third of all Vancouver home sales volume in 2015.
he Canadian housing market makes the U.S. housing bubble seem like a tiny pricing discrepancy. There have been talks for years that Chinese investors were buying up desirable properties around the globe and many pundits pushed these fears aside. Their claim was that only a tiny portion of the market was made up by investors. Well in Vancouver, one-third of all sales in 2015 went to Chinese buyers based on cash volume. That is absolutely not a small group and enough to make home prices in many Canadian cities go into even deeper bubble territory. There is no doubt the Canadian housing market is deep in a bubble. The middle class in America now realize that owning a home is a pipe dream given stagnant incomes. Do you want to own a home? Too bad. You are too broke unless you go into big debt and become a slave to our banking overlords. In Canada, local households have zero chance of competing in places like Vancouver unless they go into comedic levels of debt. How big is the Canadian real estate bubble?
The housing bubble is getting ready to implode: The scariest chart in real estate shows an impending correction because you can’t afford to buy a home today.
“Definition of economic bubble: A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset.â€Â We are definitely in another housing bubble. First, most Americans can’t afford to buy a home without utilizing artificially low interest rates and even then they are stretching their budgets like spandex. Second, home prices are surging in the face of stagnant household incomes. That is the biggest sign of a bubble. The underlying asset in housing is moving up even though incomes are not. So what is driving prices up? Speculation, flipping, investors, and what we would categorize as fickle money. This is the ultimate sign of a housing bubble. Homeownership is near a generational low because most households are living month to month unable to buy. If you want to see the housing bubble in one chart look no further.
The Great Inflationary Lie: How you’ve been lied to about inflation and the cost of living since 2000.
You’ve been lied to about inflation. That is the truth. The banking apparatus wants you to believe that there is little to no inflation so they can continue with their money expanding ways but all you need to do is look at your spending and income and you will realize that yes, life is getting much more expensive. Media pundits operate in an enclosed bubble of information and have a hard time imagining that half the country is living paycheck to paycheck. Exit polls continue to “shock†them when people state that they are angry about the economy. “But housing is up and so are stocks!â€Â Sure, but homeownership is down and half the country doesn’t own stocks. There is serious inflation going on. All we need to do is look at 2000 as a starting point.
Commercial property bubble gets out of control: Commercial real estate is now up 102 percent from the lows reached in 2009.
We live in a system were bubbles grow and pop at an increasingly faster pace. This is largely due to massive market intervention by central banks and their masters with investment and commercial banks. The goal is to always create more liquidity if you are a bank. However there is no clean mechanism to filter liquidity into the appropriate areas of the economy so enormous waste occurs typically in the form of asset inflation. The bailouts were largely a “trust the banks†operation and here we are almost one decade since the Great Recession hit and we’ve basically made the middle class a minority in the United States. In the mean time banks are doing fantastic. One area where a bubble appears to be ongoing is in commercial real estate. Commercial real estate is going gangbusters even though the typical family is barely scraping by. So what gives?