Canadian Real Estate Update (chpc.biz)

Vancouver at Rare Altitude Toronto sets a new record price as well... not comparable. Canadian Real Estate Prices, Sales and Inventory Data February 2010 In February 2010 Vancouver abandoned oxygen and used testosterone laced blood from Olympic Team Canada and surged into fresh price territory. Toronto pitched its flag on new high ground as well but central Canada is dependent on Sherpa stimulus to rope-tow up the hills of North York. It's not really the same... real men trade Vancouver real estate. meanwhile in the real world... Canadian federal budget for 2010-11 projects $49.2billion deficit and Canada had 152,000 personal insolvencies during 2009 compared with 115,000 in 2008. TD Economics March 5/10 report. The Canadian government plans to issue $95 billion in debt, raising marketable bonds outstanding from $295 billion in March 2009 to $428 billion by March 2011. Scotia Capital March 4/10 report. Canada will also be vulnerable to a slow down in global growth due to fiscal tightening in other jurisdictions ... given the increased prevalence of better-capitalized and more efficient production facilities in the U.S. Canadian manufactures will find it even more difficult to compete. CIBC Economic Insights Feb 26/10.

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In February 2010 Vancouver SFD, Townhouse and condo average prices reached new all time record highs on a dramatic surge that dovetailed nicely into the beer fueled Olympic mania that swept over the city. Vancouverites who wagered on buying real estate 7 years ago when Vancouver "won" the right to host the party, have seen their real estate bet double in price. Toronto also posted new record peak prices; Edmonton and Calgary rallied while Ottawa andMontreal hovered around their near term highs. The wall of worry should be starting right about now as the gathering storm of rising interest rate fear, un-employment anxiety and HST and other real tax hike realities buildup. If the government can keep inflation going, all will be well and buyers can continue to bid up the price. The Feds would like you to, it's what they are banking on: "David Wolf, adviser to Bank of Canada Governor Mark Carney, said the revival in the housing market was an intended result of monetary stimulus and that housing would continue "to work as an important engine pulling the Canadian economy out of recession." SOURCE: http://tinyurl.com/yf6fcj2 That's your government solution... add more debt and keep bidding up those prices.

The CANADIAN REAL ESTATE PLUNGE-O-METER & PRICE SUPPORT FORECASTER tracks the dollar and percentage losses from the peak and projects when prices might find support. Housing price data are average Single Family Dwellings*except Ottawa which are Combined Residential (Single Family, Multi Family and Condos). Montreal data changed from average to median at March 2007)

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	*SFD Prices Vancouver Calgary Edmonton Toronto Ottawa Montreal Prices at Peak $800,796 $505,920 $426,028 $431,509 $320,966 $246,000 Peak Price Date Feb-2010 Jul-2007 May-2007 Feb-2010 Jan-2010 Jul-2009 Prices Now $800,796 $458,254 $369,573 $431,509 $317,030 $245,000 Prices Now Date Feb-2010 Feb-2010 Feb-2010 Feb-2010 Feb-2010 Feb-2010 Months since Peak 0 31 33 0 1 7 $ Plunge from Peak $0 -$47,666 -$56,455 $0 -$3,936 -$1,000 $ Plunge per Year $0 -$18,449 -$20,524 $0 -$51,307 -$1,722 % Plunge from Peak 0.0% -9.4% -13.3% 0.0% -1.2% -0.4% % Plunge per Year 0.0% -3.6% -4.8% 0.0% -16.0% -0.7% Deflation per Month $0 $1,537 $1,710 $0 $4,276 $143 **Price Support Target $491,821 $265,173 $204,886 $334,272 $240,533 $209,216 Months Until Target ? 126 96 ? 18 249 Price Support Date ? Aug-2020 Mar-2018 ? Aug-2011 Dec-2030
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The price support target** in the table above represents what average Single Family house prices across Canada were in February 2005 (Ottawa are combined residential) which marked the beginning of a +/- 3 year period of ardent speculation in Canadian real estate. Look at the price chart and see that there was a 4-6 month plateau period while buyers and sellers twitched like a herd and when the credit spreads narrowed and the yield curve began its journey towards inversion, the stampede began (Feb 2005). As of February 2010 banks have their 5 year fixed mortgage rate set at a 489 bpsabove the BoC rate. They borrow from the BoC at near zero and mark it up 4% all risk insured by you dear tax payer thanks to our elected comrades in charge of transferring wealth from private to public hands.

NOTE WORTHY: Matt Taibbi's expose of how the U.S. citizenry has been recently fleeced is a warning to Canadians on how corporation influence is so deeply embedded in government policy that it is debatable as to whether Canada can claim to be a sovereign entity. Regardless of that broad outlook, if the U.S. and the Eurozone continue sink beneath record levels of debt, Canada will be caught in the wash at a time when Canada's Federal Government is taking on more debt.     Wall Street's Bailout Hustle "Goldman Sachs and other big banks aren't just pocketing the trillions we gave them to rescue the economy - they're re-creating the conditions for another crash" Matt Taibbi Rolling Stone Feb 17, 2010  SOURCE: http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle/1