Canadian Real Estate Buyer Exuberance Is Crashing
Canadian real estate buyers aren’t so sure about sending prices higher near term. The US Federal Reserve Bank of Dallas (Dallas Fed) released quarterly exuberance indicator for Q4 2018. The indicators, a measure of emotional premiums paid, plummeted over the past year. The drop brought the indicator to the lowest levels in four years. Now to see whether emotional premiums paid over the past 15 quarters can stick.
Canadian real estate buyers dropped their lust for buying in the last quarter of 2018. The exuberance index fell to 1.323 in Q4 2018, just below the critical value of 1.325. That’s an 11.86% decline from the previous quarter, and 23.4% lower than last year.