Look Who it Was Random video

Trump effect! could accelerate capital outflows from China!

952 views · Published 3 January 2017 · 10:54 · Indexed 30 October 2026

Channel: Mike Martins · 2017 · News & Politics

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YouTubers, Mike Martins here. We’re back talking about the housing crisis and housing crunch, and on January 2, 2017, the warnings are no longer limited to Vancouver or Canada. The articles I'm discussing today are looking at property markets internationally and asking whether dangerously high prices could lead to major corrections.

Housing has become one of the biggest conversations everywhere I go. Vancouver, Toronto, London, Sweden and other markets have experienced enormous increases, and now we're beginning to hear warnings about property values being disconnected from the fundamentals of the economy.

One of the reports I'm discussing cites concerns from the OECD about high commercial and residential property prices in countries including Canada and Sweden. The UK is another interesting situation. London housing activity has been slowing, Brexit has introduced another layer of uncertainty, and fewer properties are selling above asking price.

Then we have the United States and what I'm calling the “Trump bump.”

Donald Trump's election, the possibility of higher interest rates, rising borrowing costs, Chinese capital outflows and changes in the bond market could all become important pieces of this puzzle. For years we've lived in an environment of cheap money and extremely low interest rates. What happens when borrowing becomes more expensive?

And that brings me to my own Canadian housing prediction.

I'm putting this on the record in January 2017.

I believe we're going to see the first “tiny ripple” around March 2017. I'm expecting pricing pressure, people wanting out of highly leveraged properties and increasing problems for homeowners who discover that their property may be worth less than what they paid.

But I'm predicting something considerably larger for the summer.

I'm calling that the “BIG BANG BOOM.”

I believe summer 2017 could bring a much larger Canadian housing correction, with repossessions increasing and financial stress spreading beyond housing into the broader economy.

This is my prediction based on what I'm seeing and the trends I've been following. We'll have the video archived, so we'll be able to come back later and see exactly what happened.

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