Has the Australian Housing bubble burst? That is the $Trillion question.
Not if the Canadian housing bubble is any sort of benchmark.
The Canadian housing bubble is defying government attempts to burst it with an unbelievable resilience. So is it a housing bubble? Do we even have a housing bubble?
Talk of a housing bubble has been driven by a lack of affordable housing and price growth. That has happened mainly in the Sydney and Melbourne markets.
The Biggest Real Estate Bubble Of All Time Just Did The Impossible | Zero Hedge
One month ago, we said that “the Vancouver housing bubble Is back, and it’s (almost) bigger than ever.”
Fast forward to today, when we can scrap the almost part: according to the latest data from the Real Estate Board of Greater Vancouver, nearly a year after British Columbia implemented a 15% property tax targeting foreign buyers, in May the biggest real estate bubble of all time did the impossible and in a testament to the persistence of Chinese oligarchs, criminals, money launderers and pretty much anyone who is desperate to park their cash as far away as possible, after a modest drop following last summer’s tax the Vancouver housing bubble has bounced right back to new all time highs, as prices of detached, attached houses and apartment all surged to new record highs.
In other words, all that the 15% surtax achieved was to drastically slow down the rate of transactions (or perhaps home flipping). Meanwhile, as sellers held out to find more aggressive buyers, they were in luck as the new wave of buyers has emerged, and undeterred by the 15% premium, they have been slowly but surely lifting all available offers. Via zerohedge.com