Saskatoon Housing Bubble. To take a look at the short and long term fundamentals of the Saskatoon real estate market. To prove that Saskatoon and other parts of Canada have a housing bubble. Also looking at how the possible commodity bubble and troubles in places like China, the US and Europe will have on Saskatoon real estate.
Thursday, May 17, 2012
A huge warning sign of a debt induced bubble
The average house price in Canada has increased from around $300,000 in the second quarter of 2007 to over $360,000 at the end of 2011.
But home equity has decreased in that time period.
Which means that increasing home values have given Canadians the illusion that they are wealthier. They have been... on paper...for the time being. Simply put, Canadians have been borrowing faster than the increase in their homes value. A sure sign of a debt induced bubble.