Home > real-estate > Is Canada’s housing market about to collapse US style?

Is Canada’s housing market about to collapse US style?

don’t think so… yesterday I posted my analysis on where the housing market is going from here…

there has been a bit of chatter about Canada facing a US-style housing collapse… I believe we are in for a slowdown but no where near the 50% drop in some US cities

This chart shows the S&P Case-Shiller 10-City Composite Index, the Canadian equivalent which is the 6-city Teranet House Price Index and the teranet house price index for Vancouver

Source: Standard & Poors (US), Teranet House Price Index (Canada)

The annual house price increase in US from 1999 to 2006 was almost 2x Canada’s compound annual growth rate (CAGR) from Feb 1999 to the April 2006 peak…

S&P Case-Shiller Composite-10 (US) Vancouver Teranet 6-city Composite (Canada)
13.67% 7.64% 6.97%

You can view the data here

Update: I have posted an objective analysis on US vs Canada:


  1. July 27, 2010 at 5:41 PM

    Do you think the US or Canadian HPIs have “stabilized?” I don’t. Price-income and price-rent are the best gauges of where prices are headed.

  2. July 27, 2010 at 5:50 PM

    Thanks for commenting Jesse.

    I don’t think they have stabilized in either countries… In Canada, the market has been particularly volatile due to externalities (HST, low mortgage rates & toronto land transfer tax).

    I think will take at least 12-18 months to get a better understanding of where the markets are going.

    I’m looking to buying a house but I think sellers are hallucinating!

  3. kya be
    July 29, 2010 at 5:43 AM

    kya takloo,

    you wanna buy a house? i see you posting all over the place. nice work keep it up. good luck house hunting and dont be afraid to “insult” a few sellers in the process by offering them the true value of their houses

    • July 29, 2010 at 7:22 AM

      i definitely will… got nothing to lose by low balling 😀

      like i said in one of the posts… sellers are hallucinating… if they want $250+/sq.ft for a detached house

  4. Maoh
    August 4, 2010 at 9:44 PM

    Don’t believe it, prices are dropping in Canada, even Vancouver.

    • August 4, 2010 at 10:14 PM

      I agree prices have started to drop but only since June… the data is till April 2010 🙂

  1. July 30, 2010 at 11:21 AM
  2. July 30, 2010 at 2:27 PM
  3. October 1, 2010 at 10:15 AM
  4. March 4, 2012 at 5:49 AM

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: