Safe to say home prices in real terms is a good indication of “fair value”
But, as with all credit bubbles, they tend to overshoot.
A 55% drop in Canada is in line with historical norms.
Our interactive guide to the world’s housing markets THE house-price boom that preceded the financial crisis was remarkable for its scope and scale. With few exceptions, there seemed only one way for prices to go: up. Things have been more diverse since then. In The Economist’s latest round-up of residential house prices, property markets are both reflecting and reinforcing the “three-speed” global economy. LINK
Deflation 2013-2022.
You do not want any unnecessary debt when “deflation” hits Canada.
The three drivers of global deflation from 2013-2022 are.
1. Global Credit bubbles bursting (Ponzi Finance)
2. Demographics (population growth has slowed to 1%)
3. The Internet (Which is opening up global markets, and driving down global wages)
Link CPI Canada
June 1 2013
If everyone goes well, we should be live within the next two weeks. The timing is extremely important more so since Canada’s massive credit bubble is now bursting.
What the challenge for authorities is deflation arrives into the next global downturn, and the central banks cannot do anything about this.
Deflation should arrive in Europe first, then the US, and Canada will follow.
This is what are leading indicators are telling us.
Joseph
D-Wave TwoTM Quantum Computer Selected for New Quantum Artificial Intelligence Initiative, System to be Installed at NASA's Ames Research Center, and Operational in Q3
History will mark this decade as the decline of the global real estate bubble and rise of the Quantum age.
Gold Demand Trends Q1 2013 Infographic
The latest World Gold Council Gold Demand Trends report, which reports on the period January-March 2013, shows a market driven by diverse global demand, and an appetite for owning gold jewellery that continues to grow.. Global demand for gold jewellery up 12% in Q1 2013 driven by significant increases in India and China. Activities, events, products and initiatives
