What is the reason- is it soaring debt as Jesse has suggested, some of the reasons I listed in my previous post or maybe it is even simple than that- maybe...the world economy was/is recovering and we are just sitting at far too low an interest rate for far too long and that is blowing up our bubble.
BTW - when do we stop calling it a bubble- if it doesn't intend to pop :)
In any case we are skewed by the March 18th deadline for irresponsible mortgages. Lets see what happens after that.
Meanwhile zero rates causes anxiety. Not just for savers who get nothing, and watch inflation eat their hard earned dough, not just for renters who cannot catch up with rising prices, it is even stressful for those on the right side of the game. The big borrowers. They know that ZIRP cannot go on for ever but for now the music is still playing..meanwhile should they sell their biggest asset or buy more. What do to?
That is what our irresponsible Central bankers have done, they have punished prudent behaviour. Carney is like a parent who keeps telling his kids to stop using drugs and then gives them a fresh twenty dollar bill and turns his back. They have mismanaged us into yet another bubble.
Lets turn our attention elsewhere. Victoria is flat with some average up and all medians down.
Sales are down 25% from last year.
The Okanagan RE board site is down. I will up-date this post once it is up again.
Fraser Valley is flat. Benchmark detached up 1.2% , attached down 2.5% and condos flat YOY.