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Originally posted by rahul_singh23
What ever you called that low interest rate or canadian version subprime?

Q are still here:

Please justify why House price will not go down in future?

Why our low interest rate bubble is is different than USA?

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http://www.yourhome.ca/homes/realestate/article/711219--house-prices-surge-11-in-third-quarter

House prices surge 11% in third quarter
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When Daniel Austin sold his Markham town home in July, the chartered accountant was happy to get close to list price on the property, which sold in one day. Then, he bought another home in Richmond Hill in September, after a "frustrating search" to avoid bidding wars.

"I think what's going on is unprecedented and unhealthy and I'm wondering if the chickens will come home to roost," says Austin.

"The market is downright scary."

Tough for buyers, but profitable for realtors, existing home sales climbed to the highest level of any third quarter on record, according to Canadian Real Estate Association data released Thursday.

After a dismal winter, housing markets seem to have shaken off all notions that the country is in a recession. According to leading analysts, the market was supposed to be worse this year, not better.

The association reported 135,182 sales July to September, up 18 per cent from the year-ago period, and the largest jump since 2002.


National average prices rose 11 per cent to $327,736 in the third quarter. Sales up 28 per cent in Toronto and 108 per cent in Vancouver drove the upswing.

But the impressive numbers, pushed by low interest rates, pent-up demand and short supply, have some economists wondering if the market can plow blithely upward.

When Daniel Austin sold his Markham town home in July, the chartered accountant was happy to get close to list price on the property, which sold in one day. Then, he bought another home in Richmond Hill in September, after a "frustrating search" to avoid bidding wars.

"I think what's going on is unprecedented and unhealthy and I'm wondering if the chickens will come home to roost," says Austin.

"The market is downright scary."

Tough for buyers, but profitable for realtors, existing home sales climbed to the highest level of any third quarter on record, according to Canadian Real Estate Association data released Thursday.

After a dismal winter, housing markets seem to have shaken off all notions that the country is in a recession. According to leading analysts, the market was supposed to be worse this year, not better.

The association reported 135,182 sales July to September, up 18 per cent from the year-ago period, and the largest jump since 2002.

National average prices rose 11 per cent to $327,736 in the third quarter. Sales up 28 per cent in Toronto and 108 per cent in Vancouver drove the upswing.

But the impressive numbers, pushed by low interest rates, pent-up demand and short supply, have some economists wondering if the market can plow blithely upward.

"The spectre of higher interest rates early in the new year will put an end to the mini-boom we are experiencing," says Peter Norman, senior director of economic consulting at Altus Group. "... typically, when labour markets are weak, housing doesn't do well, but here you have resale markets that are above where they were before the recession.

"That's not sustainable."

"Prices are being bid up not by speculative buying, but by a severe shortage of homes for sale," said Scotiabank Group economist Adrienne Warren.

With Toronto area unemployment rate hitting 10 per cent, some economists think the real estate market is defying economic gravity. It also puts the Bank of Canada in a quandary.

The bank might decide to raise historically low interest rates sooner rather than later to cool a potential asset bubble. But a rising Canadian dollar relative to the U.S. dollar has them in a bind.

Raising interest rates would make houses less affordable, taking some buyers out of the market. But it also would drive the loonie higher, putting more heat on Canada's beleaguered manufacturing sector.

"While the hot housing market cries out for rate hikes, the runaway loonie screams no," writes BMO Capital Markets economist Douglas Porter in an economic note.


thestar.com







Looks like it is going be a long wait for prices to fall, ie. if at all they go down.

As i suggesting that as per harmonised taxed going to apply next year on house and people think that if they buy now atleast 10% money they can saved.

Well , i heard i dont have full story with fact figure. but someone who know can justify this matters, means when this tax apply? how much minimum amount free without tax. what other condition?

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pranav shah