The Housing Market Explained By The Fed’s Bubble Expert
EU Watchdog Warns of Real Estate Risk, Up To 90% Overvalued
A global real estate bubble was brewing, and regulators are only now catching onto why it’s an issue. This week notes from the General Board of the European Systemic Risk Board (ESRB) annual meeting were released. The notes reveal members are concerned that inflated home prices present a systemic risk to the EU economy. Steep […]
A Sharp Global Real Estate Correction Is Approaching: Oxford Econ
Low rates led to a global real estate boom, now expected to correct as interest costs rise. This week, Oxford Economics warned a sharp global real estate correction is approaching. Rising rates, weak demand, and falling construction prices will take a lot of the froth out of the market. Global Real Estate Prices Expected To […]
Canadian Real Estate Prices Are The Fastest Falling In The G7, US Gets Frothier
Canadian real estate prices went from the fastest growing to the fastest falling in just a few rate hikes. The US Federal Reserve Bank of Dallas (Dallas Fed) Q2 2022 index of real home prices shows Canada made the biggest drop in the G7. Still, Canada retained gains making it the largest real estate bubble […]
Canadian Mortgages To Experience Less Payment Shock Than Some Countries: Fitch
Fitch Ratings data shows Canada’s world-class mortgage debt won’t be as vulnerable to rate shock as countries like Australia and the UK.
Canada’s Real Estate Bubble Went Into Hyperdrive Compared To G7 Peers: US Fed Data
The Canadian real estate bubble is kind of like a plane. People on it know it’s going fast but being inside of it means you don’t really appreciate the speed. On the outside though, the bubble looks like it just broke the sound barrier, especially in contrast to its G7 peers. US Federal Reserve data […]
Global Real Estate Bubble Is Now More Overvalued Than In 2006: US Federal Reserve
Global real estate prices are reaching a level of overvaluation not seen in three decades. US Federal Reserve Bank of Dallas (the Fed) data shows the house price to income ratio pushed significantly higher last year. The ratio, a fundamental valuation indicator, shows that global house prices to incomes have now blown past the peak […]
Pandemic Real Estate Boom Due To Cheap Debt, Not Lack of Supply: US Federal Reserve
It’s the credit, stupid. That’s basically the conclusion from a US Federal Reserve Board staff paper. The paper, Volatility in Home Sales and Prices: Supply or Demand?, examined price levers. It paid special attention to the recent home price surge during the pandemic. The ultimate conclusion is stimulated demand was responsible for the surge, not […]
Canadian Real Estate Prices To See The Sharpest Drop In Global Downturn: Goldman
A global real estate correction has kicked off and Canada is expected to lead lower. That was the message from Goldman Sachs (GS) Research’s latest client note on rising rates. Excessively low rates stimulated record home sales and a multi-decade high for inflation. Now that rates are rising to cool that inflation, it’s removing home […]
High Debt, Asset Bubbles, and An Increased Probability of A Hard Landing Warns BIS
The global economy may be in for a bumpy ride, warns the central bank for central banks. The Bank of International Settlements (BIS) broke down the environmental variables typical of those preceding a hard landing. Most advanced economies fit this bill and are advised to start tackling inflation immediately. Those in the worst circumstances are […]
