CANADA’S REAL ESTATE BUBBLE IS ABOUT TO POP
China has been warning their citizens to be careful when purchasing real estate in Canada, especially in the over-priced housing markets of Vancouver and Toronto. Our real estate market nationwide has risen over 115% in the previous 15 years. This is not sustainable. This is driven by foreign flippers of our real estate. The Chinese media is claiming that Canada is dangerous for investors. China’s media ALSO stated that BC is too risky and that our real estate prices increased 115% in the past 15 years but income has only risen 10%.
Economists estimate that the Vancouver housing industry will decline by 50% when the correction happens. They expect this bubble to pop before the end of 2017 because of Canada’s extremely high debt to income ratio. Household debt has risen to over $1.8 Trillion Cdn and income has barely budged upwards. The income of BC’ers is too low and this should finally pop the real estate bubble, which will be a major blow to our Canadian economy.
When nations around the world call for a correction in our economy, things are worse than our governments and media are telling us. The reason our media is being quiet about this sword over our head is that it will be devastating to Canadians. We didn’t learn from the USA’s crash of their real estate market and actually owe more debt to income ratio than Americans had back then. We need to address this problem and deal with our over burdening debt.
Even the IMF is warning about the Canadian bubble. Housing in Vancouver is more expensive than a house in New York city. That’s insane! Canadians have been binging on credit and our debt will be the last straw. We did not learn from the real estate crash in the USA in 2008. Canada’s debt to income ratio is worse than the US debt to income ratio just prior to their collapse. The Liberals are going to increase Canada’s debt by tens of millions of dollars to pay for a nationwide party to celebrate our 150th anniversary. We can’t afford these events and fireworkds. It would be better off to payu off our deficit or give this money directly to Canadians.
Predictions are that interest rates are going up and this will cause our demise. Our exports to the USA will slow down due to Trump renegotiating NAFTA. The Carbon tax will cost us dearly, everything will become more expensive and hurt big time with increases every year. Canada’s dollar is now .75 cents to every $ 1 American dollar. If our loonie falls even further we will have to stop partying as our country sinks into an ocean of debt..
CANADA IS THE TITANIC AFTER IT HIT THE ICEBERG. IT’S GOING DOWN