Wednesday, March 30, 2011

David Rosenberg changes his mind...

Dec. 2009:

and this:

"In answer to the question as to whether prices are in a bubble, all we will say is that when we ran some charts showing Canadian home prices normalized by personal income or by residential rent, what we found is that housing values are anywhere between 15 per cent and 35 per cent above levels we would label as being consistent with the fundamentals. If being 15 per cent to 35 per cent overvalued isn't a bubble, then it's the next closest thing. We are talking about two to three standard deviation events here in terms of the parabolic move in Canadian home prices from their lows. So, if it walks like a duck …"

Dec. 10, 2009.

Wonder what made him change his mind? Prices only went higher!

Which Rosenberg is right?


  1. David Rosenberg spends too much time in Toronto. I assume you read your last post... that's some mighty loud quacking ;)

  2. I don't mind anyone changing their mind based on a change of facts, but a mea culpa would be nice. However it seems like these analysts just waltz over things, hoping no-one will notice the 180 degree change of opinion. But in the ago of the internet it isn't so easy to hide from your past utterances..ask David Lereah.

  3. Read the gist of Garth's post on Richmond's inventory up from 400+ to 800+, but sale volume down from +/-250 to +/-125. Guess what, sellers in Richmond are still asking 35% to 65% above their purchase prices in 2009 & 2010.

    Vancouver West, is down. Last year asking prices were up to 60% above for houses flipped within 1-2 years from purchase. Now is a modest 35% hike.

  4. what about montreal condo market???

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