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RE:RE:RE:RE:RE:RE:Vancouver Housing Bubble Bursts Spectacularly

[icecube]

baranja wrote:

icecube wrote:

baranja wrote:

https://www.cbc.ca/news/business/cmhc-mortgages-q2-1.3739665

Thanks for the link.

So, although CMHC reported that there was a spike in delinquent mortgage loans in Alberta and Saskatchewan, overall there were 8,386 delinquent loans for all of Canada: Down almost 1,000 from a year earlier.

Oh, and this is out of 2.6 million loans, a delinquency rate of 0.32 percent.

"Our net income is stable, insured volumes are up and the overall arrears rate remains low," CMHC chief financial officer Brian Naish said in a statement.

The second-quarter financial statements also revealed that:

CMHC had $338 million in net income in the quarter. Homebuyers with CMHC-insured mortgages have an an average credit score of 750, which is considered very good.

Still long and an article like this is only comforting to my position. Would have liked to see more of a pullback to buy more but I should just thank the short crowd for the opportunity they gave us.

baranja wrote:

i dont' think market is in trouble, not yet,,,

You're right. It is far from being in trouble right now.

baranja wrote: but it just takes one day of some event, and it is in free fall, the whole thing goes in to free fall.

True. But I don't invest, or speculate, on the dropping of nuclear bombs or the eruption of Garibaldi Mountain.

baranja wrote:  there has never been such a housing bubble in the history of the man kind like it is in Canada right now.

Really? Well, I would expect that a person who writes, or pumps, such shoddy research to be a poor student of history, modern or otherwise. I can think of three fairly recent ones where cap rates went negative. But you can do your own research.

baranja wrote:  This whole thing is one ponzy scheme,... nothing but pyramid that only survives if more people take mortgages. if it stops,.. it all goes down in a day.

No. A) It isn't a ponzi scheme. B) It has nothing to do with taking more mortgages.

baranja wrote:  

two things can happen here.
Ether this ponzy collapses and we go back no normal economy

By-the-way, did you know that the majority of high-end houses purchased in the Vancouver area by foreign buyers have, in recent times, been paid for in cash? No mortgages.

baranja wrote:
or
Canadian dollar get devaluated so much that a pound of tomatoes costs you 10 dollars (which is not too far from there anyway)

Wow! where do you shop? Even at the local farmers market I pay $3.50/lb. for heirloom tomatoes.

baranja wrote: and your water bill is 500 dollars per months.

I guess that you've never been to Vancouver during an extended rainy period. LA or Vegas will hit that price before any Canadian cities come close.

baranja wrote: So for the few bucks making here,. you basicaly loose in devlued currency big time.

It is actually a pretty stable currency (relatively speaking) though I'd be more inclined to invest on the long side of the CAD vis-a-vis the USD over the next year or so.

baranja wrote:


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Anyways, good luck with your investing and don't stay short for too long if it runs to the upside (technicals are looking quite interesting as well.)