Quote:
Originally Posted by Winsor_Pilates
You're not understanding the stats you're putting in this thread, which you should if you're going to argue them.
It's not an apple to apple comparison at all, and I never said it was mortgages. That's irrelevant to my point anyway, being that the method of comparison is skewed because of deliberate inconsistency.
A simple example: Lets say home prices are traditionally between 200K-300K. Let's say median income is 100K for simplicity of numbers.
Then the CEO of Encana gets filthy rich and builds a house worth $10 Million.
The range in home values has just changed from 2-3X median income to 2-100X median income. WOW!
But is this dramatic change actually representative of the average person and their home price??
I provided you with this quote from the original document:
"It may however that wealthier Canadians who did capture much of the income growth over the past 30 years have been enabled by this additional income to speculate in real estate markets, thereby pushing up prices. The concentration of income with wealthier Canadians does not significantly alter the median income, but it would create an additional pool of capital that might be used for real estate speculation."
The same article claiming the bubble and giving the 4-11X stat in the fist place even admits in their fine print how the stat is skewed; yet you still won't admit it. 
Ironic, after all the accusations you make about people in the industry misleading people, you're the one who won't admit when you've been throwing about misleading stats to try and back up your opinion. |
By apples to apples, I meant that the stats for comparing the historical 3-4 times to the current 4-11 levels are using the same method to compare. I agree that the super rich could be a reason why the variance is so wide (4-11 times) compared to the small range of the historical 3-4 times. The stats might be skewed in terms of the variance but are still correct in showing that housing prices compared to income are more expensive than historicals.
Also, from the report........
The report says that on average, inflation-adjusted house prices in these cities have historically held stable at between $150,000 and $220,000 in today's dollars but current housing prices in all six major cities are now over $300,000 on average.