{"id":8122,"date":"2013-07-17T02:28:18","date_gmt":"2013-07-17T06:28:18","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=8122"},"modified":"2013-07-17T02:28:18","modified_gmt":"2013-07-17T06:28:18","slug":"canadian-housing-bubble-looks-ripe-for-popping-toronto-star","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/","title":{"rendered":"Canadian housing bubble looks ripe for popping | Toronto Star"},"content":{"rendered":"<p>Adam Peterson writes the Canadian housing bubble is headed for a &#8220;slow-motion&#8221; crash:<\/p>\n<blockquote>\n<p>My gravest concern is that Canada is fast approaching a 5:1 home-price-to-income ratio, a benchmark achieved by the U.S. at the peak in 2006. Since the correction, the U.S. ratio now hovers at approximately 3:1.<\/p>\n<p>To compound the problem, household debt in Canada has breached 150 per cent of income and continues in the wrong direction; households are not cushioned against a blow.<\/p>\n<\/blockquote>\n<p>Australian household debt is also hovering around 150% of disposable income.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/australia-hh-debt-income.gif?w=525&#038;ssl=1\" alt=\"Australian household debt to disposable income\" \/><\/p>\n<p>While the <a href=\"http:\/\/www.rba.gov.au\/publications\/bulletin\/2012\/dec\/pdf\/bu-1212-2.pdf\" title=\"RBA: Dwelling Prices and Household Income\" target=\"_blank\">price-to-income ratio<\/a> varies between 4 and more than 6 depending on whether you use national averages or median data.<br \/>\n<img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/australia-housing-price-income.png?w=525&#038;ssl=1\" alt=\"Australian house price-to-income ratio\" \/><\/p>\n<p>Read more at <a href='http:\/\/www.thestar.com\/opinion\/commentary\/2013\/07\/14\/canadian_housing_bubble_looks_ripe_for_popping.html'>Canadian housing bubble looks ripe for popping | Toronto Star<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adam Peterson writes the Canadian housing bubble is headed for a &#8220;slow-motion&#8221; crash: My gravest concern is that Canada is fast approaching a 5:1 home-price-to-income ratio, a benchmark achieved by the U.S. at the peak in 2006. Since the correction, the U.S. ratio now hovers at approximately 3:1. To compound the problem, household debt in &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Canadian housing bubble looks ripe for popping | Toronto Star&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,10,34],"tags":[290,557,1041,1724,1726,1736],"class_list":["post-8122","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-housing-economy","category-us-canada-countries-regions","tag-australia","tag-canada","tag-disposable-income","tag-house-prices","tag-household-debt","tag-housing-bubble"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Canadian housing bubble looks ripe for popping | Toronto Star - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canadian housing bubble looks ripe for popping | Toronto Star - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Adam Peterson writes the Canadian housing bubble is headed for a &#8220;slow-motion&#8221; crash: My gravest concern is that Canada is fast approaching a 5:1 home-price-to-income ratio, a benchmark achieved by the U.S. at the peak in 2006. Since the correction, the U.S. ratio now hovers at approximately 3:1. To compound the problem, household debt in &hellip; Continue reading &quot;Canadian housing bubble looks ripe for popping | Toronto Star&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2013-07-17T06:28:18+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/static.incrediblecharts.com\/images\/2013\/australia-hh-debt-income.gif\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Canadian housing bubble looks ripe for popping | Toronto Star\",\"datePublished\":\"2013-07-17T06:28:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/\"},\"wordCount\":124,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/17\/canadian-housing-bubble-looks-ripe-for-popping-toronto-star\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.incrediblecharts.com\/images\/2013\/australia-hh-debt-income.gif\",\"keywords\":[\"Australia\",\"Canada\",\"Disposable Income\",\"house prices\",\"household debt\",\"housing bubble\"],\"articleSection\":[\"Australia &amp; 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Since the correction, the U.S. ratio now hovers at approximately 3:1. 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Australian household debt to income is similar to Canada's. There has been discussion recently about whether Australia is in a housing bubble. As Anna Schwartz (joint author of A Monetary History\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5855,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/10\/28\/australia-household-debt-crisis\/","url_meta":{"origin":8122,"position":1},"title":"Australia: Household debt crisis","author":"Colin Twiggs","date":"October 28, 2012","format":false,"excerpt":"A few days ago I mentioned that Australia is in a housing bubble. The easiest way to gauge this is to compare Australian household debt\/disposable income (DPI) to the US peak before the global financial crisis. After all, household debt is the fuel for a housing bubble. Australia's current ratio\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15672,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/08\/04\/australia-housing-incomes-growth\/","url_meta":{"origin":8122,"position":2},"title":"Australia: Housing, Incomes &#038; Growth","author":"ColinTwiggs","date":"August 4, 2017","format":false,"excerpt":"A quick snapshot of the Australian economy from the latest RBA chart pack. Disposable income growth has declined to almost zero and consumption is likely to follow. Else Savings will be depleted. Residential building approvals are slowing, most noticeably in apartments, reflecting an oversupply. Housing loan approvals for owner-occupiers are\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3578,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/23\/canadas-household-debt-is-rising-wsj-com\/","url_meta":{"origin":8122,"position":3},"title":"Canada&#8217;s Household Debt Is Rising &#8211; WSJ.com","author":"ColinTwiggs","date":"February 23, 2012","format":false,"excerpt":"OTTAWA\u2014Increased household debt in Canada, underpinned by rising house prices and low interest rates, poses a key domestic risk to financial stability, the Bank of Canada said on Thursday. The finding, contained in the central bank's quarterly economic review, was the latest in a series of warnings from economists and\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":38974,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/11\/22\/australias-debt-end-game\/","url_meta":{"origin":8122,"position":4},"title":"Australia&#8217;s debt end game","author":"Colin Twiggs","date":"November 22, 2022","format":false,"excerpt":"We are nearing the end of a thirty year bull market in credit, during which time the overnight cash rate in Australia fell from 18% in 1989 to 0.03% in 2021. Low interest rates enabled households to borrow more relative to their income, with housing debt expanding 4.5 times, over\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5846,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/10\/25\/australia-rba-running-out-of-options\/","url_meta":{"origin":8122,"position":5},"title":"Australia: RBA running out of options","author":"Colin Twiggs","date":"October 25, 2012","format":false,"excerpt":"The Reserve Bank of Australia must be viewing the end of the mining boom with some trepidation. Cutting interest rates to stimulate new home construction may cushion the impact, but comes at a price. Consumers may benefit from lower interest rates but that is merely a side-effect: the real objective\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/8122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=8122"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/8122\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=8122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=8122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=8122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}