chpc.biz
  • Home
    • History Readings
  • Chart Book
    • 6 Canadian Metros
    • Vancouver Housing
    • Calgary Housing
    • Toronto Housing
    • Compare Toronto & Vancouver
    • Housing Price Momentum
    • Real Price of Housing
    • Sales Listings
    • MAR-MOI
    • TSX Indexes
    • Millionaire Metric
    • Real Price of Gold & RE
    • Canadian Housing in USD
    • Bitcoin Gold & RE
    • Housing Starts
  • Plunge-O-Meter
    • Real Interest Rates
    • Real 10yr Rate
    • Interest Rate Spread
    • Yield Curve
    • Yield Calculator
  • Earnings Employment
    • Household Debt
    • Affordability
    • Demographia
    • Census
  • For Sale CHPC
    • Contact
    • Data Sources
    • Featured Links
    • Terms of Service

Memes and Motivation

8/24/2018

 
Canada 6 Big City Housing
CLICK CHART TO ENLARGE

​As I have been pointing out for years: 
"the combined average sum price of a Vancouver, Calgary & Toronto condo is currently 52% (no typo) more expensive than a median priced Montreal SFD."
​
The CMHC survey report confirms, Montreal buyers had less need to spend beyond their budget than the Vancouver and Toronto cohort.
CMHC 2017 Survey
CLICK TABLE TO ENLARGE
​CMHC acknowledges via a closing reference to Robert Shiller's observation that "narrative economics"...

...sound prescient to describe what could be some influence happening in the local imaginary of homebuyers. The human brain has a natural draw toward stories whether they are factual or not... stories are powerful instruments to share information and reproduce narratives with economic impact.

The echo chamber stories we bolster our decisions with are well known, oft repeated and have created ​FOMO (fear of missing out) via the memes of "foreign buyer competition, money laundering, growing immigration, dearth of available land, prices always rise, prices won't drop much now, let renters pay the mortgage, rents are rising, housing is always in demand, government needs low interest rates, government provides financing subsidies, government will protect the construction employment boom" etal.
​
Executive Summary from CMHC June 2018
Guillaume Neault, Senior Manager, Analytics Housing Research
Housing Market Insight ID Number 68469
 

This report seeks to provide a deeper look into the results of the homebuyer motivation survey initially presented in the longer study Examining Escalating House Prices in Large Canadian Metropolitan Centres. The survey was developed as a response to gaining a better understanding of key drivers of rapid price growth in the markets of Vancouver and Toronto. Rapid price growth can lead to exuberance among market participants and manifests itself through excessive expectations of future price growth. Thus, CMHC designed and administered a questionnaire to 30,000 recent homebuyers in Vancouver, Toronto, and Montréal with main objective to survey buyers’ attitudes and perceptions about market drivers. 

Summary results show:
​

∎ In both Vancouver and Toronto, 48% of homebuyers respectively spent more than they budgeted on their home purchase while only 24% of homebuyers in Montréal exceeded their budget.

∎ About 55% of buyers experienced a bidding war in Toronto and Vancouver, which is much larger than the 17% recorded in Montréal.

∎ 68% of respondents in Vancouver believe foreign investors have a lot of influence in driving up home prices while 48% of respondents in Toronto believe foreign investors have a lot of influence driving up home prices.

∎ Statistics Canada reported the share of non-resident ownership across all properties is 4.8% in Vancouver and 3.4% in Toronto.

∎ In Vancouver, the influence of investors is perceived to be stronger than conventional factors such as supply constraints and demand side factors.

The questionnaire was mailed to 30,000 households who purchased a home in Montréal, Toronto and Vancouver Census Metropolitan Areas (CMA) in 2017. One of the early hypotheses CMHC developed was that variation in price change should be somewhat proportional to the optimism of homebuyers in each CMA. CMHC identified Toronto and Vancouver because of its rapid price growth and identified Montréal as a control group because its price growth has been moderate.
​



GO TO THE MOST RECENT BLOG POST

 

Follow @Brian_Ripley

Comments are closed.
    Follow @Brian_Ripley

    RSS Feed


    Picture


    History, Charts & Curated Readings

    "History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'


    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012

    Categories

    All
    AI
    Airbnb
    Apt
    Austerity
    Australia
    Balance Of Trade
    BNN
    BTC
    Bubbles
    Budget
    Bulls
    Busts
    Calgary
    Canada
    Capital Flight
    Case Shiller
    Case Study
    Charlie Rose
    China
    Chris Kimble
    Climate
    Cmhc
    Commodities
    CPI
    Credit
    Cullen Roche
    Currency
    Debt
    Deflation
    Demographics
    Dubai
    Employment
    Energy
    Environment
    Europe
    Exports
    Fair Value
    Flippers
    Future
    FX
    GDP
    Gold
    Greenspan
    Hong Kong
    Hyperinflation
    Id
    Imports
    Inflation
    Interest Rates
    Japan
    Labour
    Martin Armstrong
    MM
    Money Laundering
    Money Velocity
    Montreal
    Mortgage
    Net Worth
    New York
    OECD
    Oil
    Olympic Village
    Pandemic
    Pmi
    Poverty
    Productivity
    Recession
    REIT
    Rent Or Buy
    Russia
    Savers
    Savings
    Solar Cycle
    Stock Market
    Super Rich
    Tax
    Technology
    Tesla
    Toronto
    Trade
    Trump
    TV
    U.K.
    Unemployment
    U.S.
    Vancouver
    Victoria
    Wages
    War
    Weather
    Whale Watching
    WTO
    Yield

    "Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense​​
Home | Chart Book | Earnings | Plunge-O-Meter | History & Readings | Contact

BRIAN RIPLEY'S CANADIAN HOUSING PRICE CHARTS & Blog for
#Vancouver #Calgary #Edmonton #Toronto #Ottawa #Montreal
Real Estate Prices, Sales & Inventory with Plunge-O-Nomic Post Peak Price Action featuring the PLUNGE-O-METER
Data reporting changes by Real Estate Boards and other data collection notes are listed on the DATA SOURCES page.

If you want to be notified when I update this site, go to: twitter.com/Brian_Ripley and click "Follow".

GET A FREE TRIAL DISCOUNT TO CHRIS KIMBLE'S FINANCIAL MARKETS CHARTING SOLUTIONS
ADVERTISE YOUR REAL ESTATE FOR SALE TO THIS INFORMED AUDIENCE
Thousands of Unique Visitors and Page Views Every Month TRAFFIC CHART

Picture
Picture
Picture

Weebly - Websites, eCommerce & Marketing in one place.
Compare Weebly Plans
​This website & blog was built with Weebly; a very easy to use drag and drop cloud based app. TRY IT FOR FREE​
CHPC.biz (this site) is a SAFE BROWSING SITE according to Google's Safe Browsing Diagnostic

  • Home
    • History Readings
  • Chart Book
    • 6 Canadian Metros
    • Vancouver Housing
    • Calgary Housing
    • Toronto Housing
    • Compare Toronto & Vancouver
    • Housing Price Momentum
    • Real Price of Housing
    • Sales Listings
    • MAR-MOI
    • TSX Indexes
    • Millionaire Metric
    • Real Price of Gold & RE
    • Canadian Housing in USD
    • Bitcoin Gold & RE
    • Housing Starts
  • Plunge-O-Meter
    • Real Interest Rates
    • Real 10yr Rate
    • Interest Rate Spread
    • Yield Curve
    • Yield Calculator
  • Earnings Employment
    • Household Debt
    • Affordability
    • Demographia
    • Census
  • For Sale CHPC
    • Contact
    • Data Sources
    • Featured Links
    • Terms of Service