Join Hedgeye Financials analyst Josh Steiner as he hosts an updated Canadian Housing themes presentation today at 11 AM EST.
Beginning with the formal initiation of our Canadian housing themes call two years ago, and after thirteen separate editions of our monthly Canada Housing Tracker, we will be presenting a refreshed study on the state of Canada's housing market.
Through a rigorous analysis of macroeconomic and housing fundamentals, we will endeavor to weigh the likelihood of a near-term correction in the country's single largest asset class and discuss the implications for Canada's major financial institutions while also providing an overview of other housing-related trading opportunities.
Email sales@hedgeye.com for more information.
Key Points:
- In the new world of U.S. shale, and without the support of a historic Chinese credit-fueled global commodities run of years past, Canada's relatively undiversified, resource-driven economy is unable to reasonably substantiate the level of wealth creation necessary to uphold the pace at which its major property markets have appreciated in recent years.
- The housing craze has swelled real estate brokers' commissions and other transfer costs to 2% of Canada's GDP –a level that is 3 standard deviations above the long-term average and mirrors levels reached during the U.S. housing peak in 2005.
- Claims of airtight Canadian underwriting and a housing finance complex anatomically opposed to the faulty structure that brought down the U.S. and global economy nearly one decade ago fail to properly address the creative forces that accompany the speculative psychologies ignited by a rising housing market.
- With the Bank of Canada signaling further rate hikes, recent housing regulation taking effect as new measures are rolled out, and the support of foreign buyer demand facing a tough compare in a time of heightened capital controls out of China, it is becoming increasingly difficult to identify signs of encouragement in the Canadian housing landscape.
CALL DETAILS
Ping sales@hedgeye.com for more information. Please note if you are not a current subscriber to our Housing research there will be a fee associated with this call.
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