Fears of Canadian housing bubble dwindle

Canada's real estate market is finding its balance.

A surge in new listings in November helped ease a chronic supply shortage and temper prices from a month earlier, easing fears of a bubble in the making even, though the rebound in the market continued unabated.

That's what economists were looking for because a steady string of monthly price increases could inflate an asset bubble and lead to a severe correction when interest rates eventually rise. For the past several months, prices have been rising month-over-month, with double-digit percentage increases posted year-over-year.

Listings in November increased by 5 per cent compared with October, the largest one-month gain in two years, the Canadian Real Estate Association said Tuesday. The increase is a sign of consumer confidence, and signals a return to normalcy in what has been an extremely volatile market. More inventory ultimately means lower prices. The average national price in November declined by 1.1 per cent from October to $337,231, although that was still up sharply from the depressed levels 12 months ago.

Is the Canadian housing market in a bubble?

It sure looks that way,” according to well-known North American economist David Rosenberg.

In his Special Report — Is the Canadian housing Market in a Bubble, Mr. Rosenberg adds his voice to a growing list of those from Canada’s financial establishment who are concerned about Canada’s growing household debt.

In fact, even the Bank of Canada is concerned, warning Canadians last week that growing household debt now represents the biggest risk to Canada’s financial system, and pleading with borrowers and lenders to remember that the current era of super-low interest rates won’t last.

100 lost $5 million in Toronto real estate scam

TORONTO – 100 people who could least afford to lose money can kiss their cash goodbye.

Police said they have reported being ripped off in a $5 million scam – and it is likely the 100 unfortunate people who bought into a real estate scheme will not ever see any of their money.

Toronto Police fraud squad on Thursday charged four people in connection with a scheme that would allegedly allow them to acquire real-estate by pooling their resources.

“It is alleged that the accused, Mohammed Saheed, purported to be a real estate specialist,” police said. “He targeted a specific demographic of victims, most of whom had limited financial resources – he convinced them that, by pooling their money, they could acquire real estate that would be managed and developed by the accused.”

Earl Jones' condo hits the real estate market

As Earl Jones' lawyer dealt with the courts, the disgraced West Island financial advisor's luxury condo in Dorval went on the market today.

Boasting breath-taking views Lac-St-Louis, spectacular sunsets year round, not to mention the spacious bedrooms, apartment 3X at 840 Lakeshore in Dorval is selling for $925,000.

The condo was Jones' last refuge before being hauled away on fraud charges and now, it teems with real estate agents and potential buyers.

As for Jones, he not holding up well aaccording to his lawyer Jeff Boro but if Boro is hoping to generate sympathy for the disgraced financial planner, Kevin Curren, son of one of Jones' alleged victims, has none.

"I can't imagine (Jones) is doing as poorly as a woman who was waiting for a liver transplant, who's money was stolen on her deathbed"