Canadian homes overvalued by 14 per cent: report

'The rich get richer and the poor get poorer', sadly. I see so many huge mansions all over that only show the greed of those who want to flaunt it, while young people, just starting out, are struggling with student loans, necessities like vehicles, medical coverage, housing and now, the HST,....this world is doing itself 'in'! This attitude that the financially well off hold, in prejudice against the poor, can't go on forever! Too much of a good thing ends up being bad, but, too much of a bad thing can backfire on the greedy members of our society. If our society does not start to realize how difficult it is for the 'little guy' very soon, these ridiculous houses will end up being empty and then where will their greed lead them??? Everyone has to give a little and not demand so much. With every little drop of greed, prices keep going up, on food, medical care,and housing,...something is going to give out! We can't all be rich, but we shouldn't all end up poor,...we've gone beyond the phrase 'hamburger Heaven' and housing is just the tip of the problem that no one wants to face,...'gimmee, gimmee' and up goes the prices again!!! Afforable housing should be a 'right', not something just for the well off,...we have lost the sense of what really matters and it can't go on forever!!!

I think Canadian real estate is certainly over values. By how much will be determined by market demand once the cost of borrowing for a home increase, the prices will drop, as history has shown us. Regarding the jews and palestinians, one can compare the rich stealing land from the poor, but hey isn't that how Canada started out !

We should be outraged that Canadian banks and making incredible profits right now at a time of deep recession; they should only make money after the average person has made a comfortable living, not before. Instead, everyone applauds the banks opportunism. Mortgage rate increases should be put on hold until the economy recovers.

Property values in Canada are drastically overvalued, driven by several factors including the Vancouver Olympics buying frenzy, which spilled into Alberta, the HST harmonization in BC and ON, which has artifically bouyed both markets; and the constant threat of mortgage rate increases across the board. All these negative incentives will lead to a second drop in the real estate market in late 2010 and throughout 2011.

I don't know why Mark Carney tends to think he's God and can manipulate the economy where others, much more accomplished than him, have failed. Greenspan manipulated the US economy for years and it led to the complete collapse of the US housing industry. The biggest lesson that should have been learned is that you should never try to extend a prosperous period with artificial manipulation; that just delays the inevitable.

The inevitable in Canada: housing values will decline over the next 18-24 months and remain flat for years. The mni-bubble were experiencing this last year is just air.

Housing prices are artificially inflated and will correct as the economy changes and interest rates rise.... NOT because the rich are bad or being unfair. It always floors me to hear people who think they have a 'right' to anything. You have th right to go earn a living in a free country and purchase whatever you can afford. If you want a home and can't afford one may I suggest you cut back on other expenses and / or make more money.... After all its your right to do either.

Jared your comments come from a very narrow mind person I totally agree with Rhonnda Do you ever think of the young ones that are starting lfe?I don't think she ever mentioned the word 'right' only sees their future as being very gloom I don't wish you to be in their position Simply insane not to see or realize where this economy is doing, really, truly is " helping mostly the rich " who steals with both arms ( forgot the Ponzi schemesindividuals ?? and where the economical manipulation of US lead the world finances?? ) You are in a dream stage abviously

I agree with "Jared" completely...and NO I'm NOT rich.
As for YOUR "narrow minded" views "Genam"...I was young once and did a higher education. Yes, it is VERY hard. However, after school, in your 20's...etc, etc, it ISN'T supposed to be easy.
You are supposed to be AMBITIOUS. THAT is what is nice about living in Canada/USA. We are apparently FREE countries where we can get what we want IF we are ambitious enough to work for it. Why is this such a hard concept for some people??

Real estate also has speculators/investors that will outbid everyone around, paying well above current market value and can afford to sit and wait. This in turn drives up prices all around them and blocks people with "normal means" from aquiring property , in certain markets, as it has artifically created a inflated price. I have seen cases where they will take 10+ years for the price to go up enough for them to make money but it is an long term investment to them and the can ride it out as they dont need the money to live. How does a young couple wanting to buy a home compete with this? If a young couple both work 40 hous a week at a regular blue collor job (Canadian average income at 40,000 per year) should they not be able to afford a home? It is their country also and they are the tax base paying for the majority of this countries programs. I understand your point but we do need to allow people with more modest means to build themselves a future. It is thier country too.

Good point Don. So would you possibly suggest the banks put in tighter rules for the investors? (I really wouldn't want to put one more job on the government. They have enough already.)

Lisa: the banks have already put in tighter rules. They have raised the down payment for investment properties to 10% so it is more difficult to buy these properties without cash to back at least some of it. Should level the playing field somewhat. The statements I made apply mainly to land purchases although it does hold true for developed porperties as well but maybe not to the same degree. My understanding is a lot of the increased cost is not due to the cost of the dwelling itself but the land it sits on. Where I live a lot that sold for 30-35 thousand five years ago can now go for 75-90 thousand depending on the area.

I understand what you are saying Don. Could this raise in cost of land also have something to do with the high immigration we've had in the past. (Harper has taken some of that out, thankfully.) More people in a certain area means the cost of each square foot of land increases. (I'm actually thinking about New York City as I say this. However, the concept could apply anywhere.)
Thanks for raising that point though, Don.

Jared, wow, what, a fall off the birthing table or what. Give your head a shake man, you are not controlling anything in your life except your ability to buy what you think you want or need. Sorry Pal but you need to look a little deeper into the ways of the world and realize that unless you are on the list of folks at the next Bilderberg's convention, or named Rothschild or Rockefeller et al you are just peeing into the wind. If you think the world is not tilted against anyone then think again because you are just temporarily in control of your life. Goldman Sachs has other ideas for you. Do a little research Jared. Please don't become another addition to the sheeple of the world. We need everyone to participate, become a little more educated and be part of the solution.

Johnny, I don't think many people have a clue about Bilderberg, the Rothchilds or Rockerfellers, or how the US Federal Reserve works. Do you think the Federal Reserve is a part of the US government? Think again, because it's not. It's run by BANKERS...international bankers. That's interesting isn't it.

However, it seems in Canada, the immigrants are one of the primary causes of all of our problems...right along with the poor. Right Lisa? Out of curiosity, what other groups would you lump into that category?

i will give "lisa" points on civility and politeness while posting.
it is a far better bed-side manner than some of the other right-wing dogma worshippers.

but, let's be clear here, each and every argument is about maintaining the established status quo. there's the anti-immigrant stance, the blindly trust our gov't approach, the corporations know best perspective, the we're little people who don't know how it all works so we should let others decide for us mentality and so on and so forth.
classic and age-worn. is there a well-thumbed text book somewhere that has been memorized by these people?
sometimes it's almost like an archie bunker collage of ideas.
some of the rationale defies logic to such a point, that their very arguments can be blamed for the birth of conspiracists theories.
at any rate, it certainly makes for entertaining reading sometimes.

How nice it must to be so entertained by the masses :)

Terrific work! This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher!

Terrific work! This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher!