The demand will remain the same. If not, get bigger. Only the ability to qualify for a mortgage will "plummet". Many responsible young adults have put off marriage and family due insane costs of housing. If they're lucky they might get inheritance from their parents, but when that day comes, they will be too old to start a family anymore. This will be Canada's new "lost generation" and its so fucking sad.
The founding population who own all the Wealth are leaving Canada in droves since 2005, Canada is a "first world" country with a third world economy and population, no one wants to throw their future away in that shithole. The only people that have stayed behind are the dregs of society.
@ak4344 20 is a stretch, but i see what you are saying. Commonly referred to as multi-generational families is something immigrant communities have been doing for years in better effort to pool resources when starting out fresh in a new country. Great plan if you ask me. Im greatful my grandparents were around at home when i was growing up. Wouldnt have changed it for anything.
systematic homelessness The banks are artificially lowering consumer demand by making it more difficult to qualify for mortgages. People will always need a house to live in and food to eat no matter what the economy looks like. Even if you make the mortagage rate 75% (yes, 75%), it does not take away the fact that houses are still in demand, you systematically made more Canadians homeless.
He is right about red tape. I had a friend just trying to renovate his old Hamilton house and there was endless regulations and licenses and government bureaucracy that they needed to go through to even get ONE shovel into the ground, and this wasn't a new plot of land. This was their house that they bought and wanted to renovate. It's insanity.
Rents and mortgages need to be 30% of household income to optimize the economy, according to literally hundreds of studies by economists going back nearly 100 years. We need the government to set that as a target. It will take a looooong time to achieve, but unless we set this as the goal it will never be the case.
It is not possible. Unless the government step in and make social housing. If the houses are so cheap that there is no profit, no developers will take on any new projects.
Step 1. Fidel Castro's Biological Son spends the last 5+ years shipping in MILLIONS of Turd-Worlders into Canada. Step 2. Force the real Canadians to buy the Turd-Worlders free clothes, free food and FREE housing for the past 5+ years. Step 3. Blame the lack of home building for the Housing Crisis and NOT the Millions of Turd Worlders that Castro's son has flooded into Canada.
And how do you propose we do that? Every single cost involved with housing has skyrocketed and that cost has to be passed down to the consumer. Also the amount of regulations on bureaucratic delays adds immensely to the difficulty of constructing homes as well as the time it takes to build them. No company will volunteer to build homes at a loss to achieve that goal.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
I think I could really use more guidance to navigate the market, it is completely overwhelming, I've liquidated most of my assets and I could really use some advice on what best to invest into.
It isn't slowing down the housing market in North Bay. I've been outbid 3 times because I'm unwilling to get into a bidding war. Prices going up not down
Note that they now call a "home" a condo townhouse or high rise apt. A few years ago it meant a single family home where you could raise kids. Federal, provincial,and municipal govts treat housing as a cash cow. 40% of your payments go to these govts. Thats why two incomes cant buy a house one could 30 years ago
And yet house prices will continue to increase. I’m convinced half the Canadian population could go broke, and house prices would still rise! Go figure
Successful people don't become that way overnight. most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life
You're absolutely right, to be a successful in life required not only hard work but awareness and sometime opportunity at the moment, investment remains the best way to start.
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yeah investment is the key to sustaining your financial longevity but venturing into any legit investment or business without a proper guidance of an expert can lead to great loss too.
@agraimentsyahung726wow I'm really surprised to see so many recommendations about Debra Barton, i thought people don't even know her, she's really awesome.
You have to do it now, they are smart... before no one will buy. I'm staying in my house but I sold my rental last year when I saw everything going up. Plus, I had debt to pay off.
Rentals have increased by 35% in three years where I live, because during low interest rates, investors (i.e., landlords) used their other properties' equity to outbid first time homebuyers. Now that interest rates have increased, they're not paying the mortgage: they're kicking out their tenants using family members, getting new tenants, and jacking up the rent. If you're a renter in Victoria, you will never be able to save up a downpayment because you're using everything you've got to pay for someone else's bad investment.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
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We should follow the example of Singapore and have the government actually build rental housing the way it used to, instead of subsidizing fat cat developers and landlords. Also, reduce the immigration rate to a level below that of new housing construction and keep interest rates at these new normal levels. Voila, housing will become affordable.
Canada and Ontario keep making it easier and cheaper for developers, but those savings are not passed onto the unit owner/renter. It’s just lining the already fat pockets of developers selling/renting units at record high prices and with no rent control on unit occupied after 2018. Also removing the developer fees they would normally be paying to cities/town hugely impacts their budgets for things like amenity and park space throughout the city. The only way to recoup this is raise taxes, further impacting the home owner and housing affordability. Cutting developers slack is not the way. It’s the political tale as old as time: the rich get richer and politicians need rich friends. What people don’t hear about in Texas where housing is approved in 3 months. Is these homes are not subject to continual and long term freezing conditions - a lot of homes don’t have basement. A lot of these homes/properties end up with flooding on the property when it rains because the lot grading was not designed and approved through city review. It easy to blame red tape, but holy we do not want to cut the engineering review in the sanitary sewer design or building code review. Production homes made by Peter’s company Mattamy are already garbage quality, imagine if we dropped the red tape haha, sheesh. And he’s got the fattest pockets of them all, he is not an advocate of good information.
Your clueless. If it was truly more cheaper for the developers, then there would be a "race to the bottom". The truth is, it cost $300k in FUCKIGN PERMIT FEES alone. Just because you decided to build a house in Canada, you will now pay a $300k fine. Every single house you see on the street, can have $300k subtracted from the price, if the government of Canada ceased to exist tomorrow.
@@honkhonk8009 lol $300k where? Maybe a $5M custom house in prime Toronto where they need to run new one-off servicing to the lot. don’t take a [random] figure from [maybe] the top 0.5% act like every single new house Canada wide, or even Ontario, or BC, has a $300,000 inclusive development fee on it. That’s a pretty stupid claim. Keep skewing and making crap up though. You think a small township is pulling in $100-150 million in fees for a new subdivision? lol gtfo. Talk about being a clueless sheep
It's been a rough year with losses from failed banks, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong. What a terrible year it is…
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New immigrants can't afford mortgages now unless they are cash buying in full. Even Canadians making 100k each, and 200k as a couple can't afford mortgages at 6% fixed. Most likely the immigrants coming in are low skilled labour, and the wealthy coming in aren't going to work at all. Productivity is declining at a rapid rate and also our GDP per capita. Quality of life is declining, and the cost of living is increasing per day with high inflation.
@@luigit9321 Incomes not enough to cover elevated carry costs/ opportunity costs at current valuation. Either CAD needs to drop a lot (inflation) or house prices need to come down a lot.
Lowering interest rates for entities buying up land and building rental properties not houses that will become a long-term generational home. This is not going to benefit the average consumer this will benefit corporations that buying up land and build rental properties on mass this is one more step towards never own your own property.
Canadians are out of money. New construction jobs take 5 years or more to complete on a good job site. Delays are expected in construction. Inflation has pushed house prices to high for average consumers. Forclosures & bankruptcies are up. This recession will destroy many. Canada has no money for food, paying bills or housing.
Man I was on a pretty big site for Kamloops, and the concrete forming carpenters had 2 decent guys and 6 idiots staring into space.... I wouldn't buy those condos lol.
"In Canada, we're obsessed with bureaucracy and red tape". Its worse than that: in Canada we're addicted to big government getting its hands into everything...making everything slow, expensive and inefficient. We want to make interest rates and inflation go down...then reduce government size by 40-50% at all levels.
Ah yes, cut the red tape and let the developers run wild. Just wait and see the problems homes, condos and properties will have. lol don’t believe the “red tape” excuse. It’s coming from the Uber rich developers and is just like cigarette companies in the 70s saying they are healthy
@@polishthedaybetter investment than the stock market, and we are over taxed, so retirement income is important and if you do not work for a government, you try to maximize your ability to create savings…unfortunately.
@@andrewsbbqcutting red tape does not mean stopping building inspections and permits…more likely having the years to wait for zoning changes and silly environmental studies to be done. In many cases, it can take 2 to 3 years before a shovel can be put in the ground. The new homeowners are paying for the financing costs on that land.
@@roykowalski4125 lol @ silly environmental studies. You lost all credibility with that comment. You must be a developer. Canada has too many critical water systems to overlook ESAs and adverse soil conditions Financial costs on the land? Do you know much land developers own and are hoarding? A lot, especially along the 401 corridor where they are waiting for Regions and municipalities to provide servicing close enough for them - sewage pumping and treatment facilities, Watermain transmission. If you bought the "red tape" act then you're a gulible fool and likely buy everything a politician tells you too. Making an uninformed opinion is also known as ignorance
4:16 - Sure, but when you buy five years ago when the interest rates were 2%, why on earth wouldn't you lock that in for the longest term available? People were basically gambling with tens of thousands of dollars hoping they might save a few hundred. If I could have locked my rate in for 25 years, I would have.
All the locked rates will be renewing in 3 years. Gonna be a wave of defaults or everyone gonna be renting sharing rooms with the endless immigrants they bring in and need to get used to curry and other cultural differences if you're sharing the same toilet and kitchen.
A more disturbing trend that home owners were doing for the past 20 years is taking equity out of the home every year. I know many people that were constantly doing this. As the value of their home increased, they would go to the bank to refinance and take that additional value out and use it for a vacation, or boat or new car or whatever. If people hadn't done that, their mortgages would have declined over the years and a rise in rates would not have hurt them. I have no sympathy for people who did that.
@@antonellaprovenzano270 except the bank of Canada has been telling people for years to get their debts under control because interest will eventually go up.
Prices aren't going to drop as long as the government maintains the unsustainable population growth rates because there will be so many people competing for the limited available housing. A decreasing but still large enough number of of people looking for homes will be able to buy them, locking out many young people. When governments create artificial demand due to their population targets, it needs to be balanced but the current numbers are anything but balanced or sustainable.
Not everything is purely because of Immigration. Immigration affects rental housing the most and effect is immediate, which benefits homeowners who are renting out their 1st 2nd or 3rd home. Most immigrants don't buy a house until after few years (3+ yrs) of immigrating. If someone has to be blamed it is those people who buy multiple properties and let it sit idle out there or just airbnb it thereby putting pressure on would-be renters and the market and pricing out young people.
@@itsjustramblingsa million people a year. A MILLION. There's is NO chance that housing prices will fall, the middle class is going to vanish. The majority of the immigrants come from poor countries where they are used to living in high density conditions.
@@Peglegkickboxer Look up the stats the majority of immigrants only make $30,000 per year for the first few years when they move in. So I guess you think all the immigrants that are moving here (majority of which are from India are all millionaires ? )
my take to eventually getting back to a semblance of sanity in the next 5-15 years (its a slow burn): demand reduction: 1) i-rates don't need to rise anymore, but it also shouldn't go back down by much (unless the US brings it back down post another liquidity crisis or economic slowdown--but it can only happen if inflation is under control by that time). 2) As i-rates stay up, the inflated no-risk perception of real estate as an investment vehicle will go down, leaving the demand a fraction of what it used to be. 3) Higher taxation on RE investments just to put that nail in the coffin to really slow demand and ensure that housing starts are primarily for people who intend to live in them -- that being said, this could affect the supply part so this one would prob need to be thought out in more detail -- maybe incentivize rental properties from a taxation perspective and tax condo/townhome or single-home residential RE 4) Limit immigration. I know this is Canada but we just don't have the infrastructure. supply increase: 1) with i-rates staying relatively high vs the past 15-20 years but lower than the periods prior to that, incentives to build are down due to high financing costs. where the government can help are reducing taxation costs (GST/PST), bureaucratic costs (municipal level), etc. -- basically have the governments take a smaller (or even negative) piece of the pie on the side of developers such that the math works for them -- and reduce spending to offset the lower taxation revenue. This is where the conservatives will likely kick in, because liberals/NDPs will not be able to swing it politically (note that I voted left in the past so this isn't me pushing the "right-wing" agenda. Just trying to be reasonable). 2) invest in trades and processed resources (ie. materials), which will control labour costs (prob stands to rise still), lower material costs, and increase building capacity overall (its still a catch-up game). And by investing in labour, training/apprenticeship is a good long term solution but in the short term, it'll have to be either giving foreign companies local contracts or bringing in foreign skilled labour. I would be careful on maintaining regulation to ensure that we don't have "cardboard condos" like in parts of China though--thinking more Korea/Japan with higher quality standards. That being said I don't think those countries have the excess resources right now either so an export-service oriented industry will prob need to be developed/pushed for in trade talks. 3) Look to other countries for ideas on housing structures and zoning. NIMBYism and poor infra dev is a large part of why we have so much space and no housing. Look at Korea's large condo structures that actually have room for families and larger population despite the landmass being a fraction of Canada's (not to mention that Korea is mostly mountains to begin with). [obv some bias here in terms of what I know, but this is an example of how we can borrow ideas int'lly]
Ban airbnb and short term rentals immediately, with the notion that this will be permanent. This will change housing in Canada very quickly. I think they're saving this bullet in their chamber to really screw homeowners when they're on their last leg.
Hey what if we call 1M refugees, 1M cheap labor, 2M students, can we have houses to be 2-3M and oh by the ways we don't have luxury to lower interest rates. But hey!! There are all these poor bastards who are increasing the demand, so it'll support the price. 🤦♂️
A very very long time at the rate we're going though. Does anyone else think it's weird that they always say "The rates will have to come down!" Never "The home prices will have to come down." I just think it's strange
Prices will deflate once homes have sat without mortgage payments long enough and the court orders sales. That is what is going to happen. People are already not paying.
Amortization schedule needs to be 60 years with the home prices today. The total interest paid about not be 70% of the home price at the time of purchase
The Developers get the breaks. You don't pay GST on a new house unless you live in it for less than 6 months. Developers sell the homes to investors, the investors rent them out. Now house prices are surging in Calgary. Immigrants are flooding into Calgary and bringing their civil wars with them. You are right about Canada taking it's time to get things approved.
@@c.c.dorrie5795 I guess you might call it a religious war. Maybe? In NE Calgary last week, hundreds of people gathered to bash each other out with clubs and 2x4's. They came from India and in Canada (ex. Calgary) they are still fighting the battles they had in the country they left.
To be fair it's not that many civil wars. Just 2. The Indians vs. Pakistanis and the two groups of Eritreans. Other than that pretty much everyone else is somewhat peaceful.
@@matthewstonhouse156 Burnaby, Surrey and NE Calgary. Very high concentration of Indian religious sects. 2 weeks ago NE Calgary had a battle between 2 sects. Most with clubs to bash each other. Burnaby, an assassination. When you brig religion into play, then there are no geographical boundaries.
it's not the high interest rates it's the extreme home prices, low value of the dollar, our labor and buying power of our currency. Average house price in the GTA is higher than the average Canadian earns in a lifetime. The medium of exchange is totally broken and in some ways living off grid/homesteading is easier than participating is society now.
There are many places in Canada where a house will sell for less than the cost of construction. Once we approach the inflection point though for a new home, builders will get out of the business
The cost of building a house( only the house) is very chesp. You csn build a 2000sqft home very well appointed for about 150k in southern ontario. The 50k "development fee" and the cost of the land and feesss areway way more thsn yhe actuslhouse.
Interest rates should go even higher. Inflation is a tax on EVERYONE. Interest rates affect borrowers only and a lot of those borrowers were speculators and/or irresponsible.
@@Doctor_Bongyour observation is absolutely spot on. I've also noticed more homes built with garish space and amenities....comparable to forts. Prepper style homes with countless bedrooms, ect.
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
I agree, It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
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who cares? The average Toronto home cost $90K in 1981, it was $1.2m last year. House prices went up 13x while incomes went up 3x. What would you rather have, a 300K home at 15% or a $1m home at 7%? Two university educated people in their mid 30s can barely afford a starter home in the suburbs today.. In 1980 they could buy a house in Forest Hill...
Renting is crazy I’m 21 and I pay 1300 which might seem like nothing but it’s is I only make 2000 a month and I have a 1 year old, buying a house would be a dream for me and my little one but it seems so far away
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Its sad that we're in a situation where people want others to fail in order to purchase homes. People are hoping people cant afford their houses so that houses become available and for a more reasonable price. It's honestly sad.
people should understand when you treat homes like stocks on the stock market, you risk its value going down in exactly the same way as a stock on the stock market.
I hope interest rates keep going up. sounds sadistic but every (expletive) buying income property (e.g. airbnb) are preventing people from owning a home. I hope they lose their shirt.
Don't worry. 12k a day are breaching Texas daily. Most headed for Canada. The housing demand here will not plummet. As far ad society staying intact. That's a different question. 😂
Canada is a mortgage jurisdiction, similar to the state of Oregon. It's hard to get IN to a mortgage and also hard to get you OUT. A Deed of Trust jurisdiction like Calif. Texas. and Florida you can get in easilly, but also lose easily. The Bank of Canada rate has played games on Canadians, hiking interest rates every decades often with no reason, allowing people with K|ASH to scoop up housing and have their asset triple in value in less than three years. That KASH often, but not always, comes from cash rich buyers, overseas or not. Inotherwords, like HUD in the USA, Federal agencies and their policy are a very big part of the problem, and Canada's big 5 banks LOVE to say the NO word, and make qualifying very difficult.
The only people in their right mind buying houses right now, are the ones looking to profit and use the house as an investment, and not actually a home for their family. That's what got us here, and it's going to keep getting worse. The cycle of people getting a mortgage, just to rent it out for mortgage+profit has got to end!
The government could offer low-interest construction bonds? You get let's say construction loan at 2% below overnight. And since construction cost is low, the price at which a new unit hits the market would be low.
House prices come down but interest rates go up. The home buyer pays the same or more per month as they did before, but now they just pay more to the bank and less to the seller.. helps no one but the bank.
5&6% are Not high interest rates, 12-18% are high rates . 5&6% are a normal rate over the years. Over spending and not living with in your means ARE THE PROBLEM....
And once again, CBC ignores the problems with the LTB that enables non paying tenants to live rent free at the expense of paying tenants. Until the LTB is completely overhauled and this enormous decades long deficit is eliminated, this will be the world we live in.
House prices are not up coz of low interest rate . House prices are up coz of high demand . It will never come down untill it has less demand . What if price of food goes up 10 times . Can u stop eating ? Housing is not connected to Interest rates . On top of that people who own 10 20 30 houses don't care about interest rates . They just keep increasing their rents .
Alternatively, the government should make it easier for citizens, not corporations, to build affordable rental properties. Keep the wealth in our communities instead of corpo's pockets.
its simple math. 6.5-6.8+ percent interest isn't the only issue. Its not like 5-10 years ago where you could purchase a home for 300-500K @ 6 percent. that was attainable for a lot of people. Those same homes are now 1 million + and at 6.5 + % = that's insane!!!. People in 2021 buying homes for ridiculous prices because they weren't educated, or aware of what was happening, bought in to the crazy talks about homes will only get more expensive and buy now or miss the ship etc..... Now their equity as dropped 100K or more, and continues to drop(i suspect 20/30 percent within a year and change)about to face 6.8 percent renewal rate on a million dollar home they probably had no business buying in the first place(low interest rates or not), and now the economy is a ticking time bomb. I don't ever want to capitalize on someones hardships, but cash is king, and i am ready to punce when this comes to a bad crash. it's not an if situation but a when!
Someone on reddit posted that mortgage brokers in Ontario are falsifying papers to give unqualified people mortgages. They charge them 1000$ to falsify the papers, get them an absurd mortgage with fraudulent papers and pass the risk on to the bank which often doesn’t do its due diligence. Last time this was happening was 2008 as depicted in The Big Short.
Maybe Canada should stop bringing in so many people . How are they affording this rent on a minimum wage jobs . People just want to come to Canada to brave to peope back home that they are in Canada even though they are struggling pay check to pay check.
Developers complain it takes up to five years to be able to build due to red tape and labour and construction costs go up 20% a year. Buy the time the project is ready rent or sell the price will always be higher. Also we have 500,000 new immigrants coming each year for the next 5 years. A rate of 6% for 5 years is still cheap. Only the younger crowd thinks it’s expensive because they haven’t seen 21% rates in their lifetime.
@@tylerdurden8378yeah I don't know that the fuck this dude is talking about. 21% rate normal during the late 80s or 90s. Let me know what older generations from that time that had a house are actually fucking struggling to live in a house. Sorry but if people want to survive, food is number 1. Not fucking beer, cigarettes, and dispensaries, $7-$10 bubble tea everyday, $7-$10 Starbucks special drinks, $5-$6 donuts lmfaoo, since when does sugar and water cost that much? And that's literally the only thing these businesses even sell. Anyone seen these cafe shops popping up everywhere? Chattime? Anyone want some flour balls or corn syrup? I could've sworn MSG causes cancer during the time when the Chinese were swimming or boating to canada during the 70s to 90s. Guess now the Chinese pretty much own everything cause the Canadians in this country are so easily gullible, wasting money on sugar, water, plastic cups and compressed air
Check out the price of lumber, concrete, wire, roofing, etc. and you can’t build a house for what they are selling for. I built my own small house and still spent over $350,000. If prices drop further, I don’t know why anyone would build a new one.
@jameswilliams3304 I would disagree. I’ve worked as a plumber, carpenter, sheet metal mechanic, gas fitter, roofer, concrete finisher, electrician and a few other trades. It is material cost that have gone way up. Wages have hardly moved. A journeyman sheet metal mechanic made $27/hr in 1981 when I apprenticed. They don’t make much more than that 40 plus years later.
3 things that could turn this around in a year. 1- lower the interest rate for first time buyers to 2% while maintaining the current rate for developers. 2- replace most if not all of the House of Commons idiots with A.I. and see how they like it 3- eliminate the carbon taxes all together You’re welcome
Baloney. Rental companies are buying up houses as they have thr cash and can charge whatever rent necessary. On my street alone the last 5 houses were bought by a Ontario firm. This is nova scotia.
Affordability is with the distance and don't blame mortgages all the time because of the property values are assessed on the location influenced by local markets in capital value based on state of economy in industrial activity in Microeconomy.
no mention of how ridiculous materials costs soared to either, which makes even basic reno projects in order to adhere to coding or bilaw standards, almost impossible for some. not to mention how many people got burned when during covid, they waved mandatory inspections. so many people bought lemons with 30k worth of work needed, which then required 60 worth of materials due to massive inflation...and many of those people passed that on to renters like myself. fun times to be had all around.
not just interest rates, developers have large profit margins built in and construction companies waste a TON of materials in the conatruction process. there is plenty of inefficiencies on the developer and construction side of the business, but no one wants to admit it.
The biggest scare is coming in house taxes all these homes have gone up over the past few years now it is time to for them to access the value of your home and raise your taxes. Then add that the interest rates have gone up and when so many peoples homes are coming due to renew and can not afford the payments let alone even be approved for the higher interest payments. Oh , we do not want to forget that so many people are strapped by the high cost of food and cost of living. When you are having problems look at all the politicians and the rich who are causing this and the reason is so they can get richer when you can no longer afford your home they will buy for pennies.
Canada is 1.2M homes short of the G7 average and has the most ambitious immigration policy in G7. This lack of supply means home prices will not go down anytime soon. People need housing and if they can't afford to buy a place they will try to rent and due to lack of supply the rent prices will go up so owning an expensive home will make sense again. You can't break the cycle of housing cost increase without a constant supply of affordable housing projects. If all levels of government make the affordable housing their number one priority, it will take minimum 10 years to see any significant cost reduction. The other bottleneck is the availability of construction workers which comes with its own set of complex challenges to be resolved.
Lets put the crazy away for a second. Every Canadian knows how bad the Trudeau government screwed avg people regarding home mortgages and housing in general. Here's a common sense thought... 1. We do as the USA and have mortgages with fixed or variable rates for 10 to 30yrs not 5yrs. And allow homeowners to get tax credit on the interest. 2. Even a 2 yr old could tell ya that you can't open the perverbial floodgates on immigration and not have the housing infrastructure in place 1st. 3. Remove the stress test. Frankly, if people buy a home to become mortgage broke its their problem for being stupid. 4. Provide a modest tax credit to those renting their properties/basement or rooms to help existing Canadians 1st to find a roof over their heads BEFORE you open the doors to immigration 5. How about a fair market price cap on all new built homes. No more allowing builders to charge ridiculous margins amounts while receiving gst credit which does nothing for a Canadian trying to get into the housing market. Remember, its home owners that keep the economy going..they buy furniture, appliances, use contractors for upgrades, buys things for the house, pay (ridiculous) property taxes that pay for local transportation, sewer, water, fire, police, education, etc. Give the avg Canadian breathing room to buy a house and watch the economy flourish with happier people living in them.
You can't remove the stress test in a country where a person can't walk away from mortgage debt. You're comparing apples to oranges. I agree with you in principle, but mortgages are government backed in Canada.
Nothing will change the price of property while there are more people than places to live and we can't build fast enough to keep up with the amount of people we have
and they won't for many months, prices for houses take a long time to fluctuate. Especially when we talk about lowering prices. Give it 12 to 24 months
Pretty much right now people arent willing to sell and buyers csnt afford. Something will give. Why would anyone want to sell at a loss? (If they didnt have)
This is why the BoC can't raise rates much further. The entire financial system is based on debt especially mortgage based debt. The banks are highly leveraged in this area and could be in big trouble if people can no longer make their loan payments at these higher interest rates.
Plenty of jingoism, euphemism and corporate double speak from the "expert" guest... coincidentally all complaints if adjusted his way make developers and real estate brokers richer but do nothing to alleviate demand or the crisis of non-affordability. Why is there no mention of the speculators who own 2, 3, 4 properties? Or, why no mention of the builders refusal to take on rental development because they want government hand outs first? It's not about profit, but easy money. And just for the record does Texas honour environmental concerns? Does Texas tie development to larger infrastructure? Wasn't it Texas that had a small winter storm wipe out their entire electric grid for weeks, a couple years ago? And we want this because?! Corporate bs, all of it. Capitalism is good, profiteering and gouging hurts everyone.
One of the main reason we have higher house prices is due to the money printing which cause inflation and the debasement of our money. We need to cut the spending and the size of our social system.. Too few people are net tax payers for all the services we get and give out.
Rubbish. Current mortgage rates are actually a pretty reasonable rate. My parents bought a house in the 80s and the mortgage rate was 19%. What drives demand is population. Alberta had a 4% growth rate in population. Unprecedented in Canadian history. Housing prices will only increase.
The rate hikes are a signal from the bank of Canada to tell the Government to stop spending and pay down our debt because it's causing inflation. But the big thing they didn't really mention is that houses are still vastly over valued. We need to get back to $200k - $300k houses again. Let the people who over spent and honestly deserve to go bankrupt... let them. and lets get back to sanity before we have a massive market crash like they had in the States
Last time we had $200-$300k homes, interest rates were 20%. Guess what a $300k mortgage costs at 20% interest? About the same monthly mortgage as a home worth $1.2 million at todays interest rates so it’s still unaffordable
@marvinsulzer8258 Maybe in Toronto, but most places were like $100,000 when the rates were 20%... which at that price is manageable. Even at high rates, $800 - $1200 a month used to be a mortgage payment. Now that's not even half a rental payment for a house half the size. We know what is causing the issue. The problem is that they aren't willing to fix it because it's gonna be painful and a lot of people are going to lose their homes... but that's better than everyone losing their homes
Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
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Developers already get handouts. The government can’t force corporations to perform work. They’re not doing it because the profit margin isn’t good enough for them. This isn’t a government spending problem it’s a corporate greed problrm
This is not just handing over 9 billion dollars in cash. People like to make statements without full disclosure. Do you know how many Canadian jobs are involved in that 9 billion? Money is being used to build military vehicles and equipment IN Canada, for Canadian corporations, with Canadian employees, feeding their Canadian families. IT is not handouts.
REITs are part of the problem. The commodification of housing has created this mess. We need rental housing built by the public- not the private-sector. FIRe, driven by profiteering, always comes out on top regardless of whether the market is up or down. For the average renter or homeowner, shouldering massive debt, there’s a world of pain still to come. Canada now has the largest housing bubble in the history of the world. Keep that in mind next time you’re thinking of picking up an “investment” property.
They should get rid of the hst on all building materials. Eliminate a huge burden of accounting. That way Canadians would also make additions to their homes adding rental units
This guest did a great job presenting his views without bombastic predictions or unrealistic timelines. Kudos!
...five years ago people didn't see this?
The demand will remain the same. If not, get bigger.
Only the ability to qualify for a mortgage will "plummet".
Many responsible young adults have put off marriage and family due insane costs of housing. If they're lucky they might get inheritance from their parents, but when that day comes, they will be too old to start a family anymore. This will be Canada's new "lost generation" and its so fucking sad.
The founding population who own all the Wealth are leaving Canada in droves since 2005, Canada is a "first world" country with a third world economy and population, no one wants to throw their future away in that shithole.
The only people that have stayed behind are the dregs of society.
Over 1 million immigrants last year, many of them willing to live among 20 others in a 3 bedrooms house, I don't see much changing at this rate.
@ak4344 20 is a stretch, but i see what you are saying. Commonly referred to as multi-generational families is something immigrant communities have been doing for years in better effort to pool resources when starting out fresh in a new country. Great plan if you ask me.
Im greatful my grandparents were around at home when i was growing up. Wouldnt have changed it for anything.
@@Jindsing I used to do rented water heater maintenance, 20 is not a stretch. And thats in a city of 75000
systematic homelessness
The banks are artificially lowering consumer demand by making it more difficult to qualify for mortgages. People will always need a house to live in and food to eat no matter what the economy looks like. Even if you make the mortagage rate 75% (yes, 75%), it does not take away the fact that houses are still in demand, you systematically made more Canadians homeless.
He is right about red tape. I had a friend just trying to renovate his old Hamilton house and there was endless regulations and licenses and government bureaucracy that they needed to go through to even get ONE shovel into the ground, and this wasn't a new plot of land. This was their house that they bought and wanted to renovate. It's insanity.
We have let governments silently over regulate for decades and its reaching a boiling point. Its even worse in Winnipeg, MB and it needs to stop
Rents and mortgages need to be 30% of household income to optimize the economy, according to literally hundreds of studies by economists going back nearly 100 years. We need the government to set that as a target. It will take a looooong time to achieve, but unless we set this as the goal it will never be the case.
The Canadian dept has doubled it will be hard to achieve.
It is not possible. Unless the government step in and make social housing. If the houses are so cheap that there is no profit, no developers will take on any new projects.
the goal was to also balance the budget
Step 1. Fidel Castro's Biological Son spends the last 5+ years shipping in MILLIONS of Turd-Worlders into Canada.
Step 2. Force the real Canadians to buy the Turd-Worlders free clothes, free food and FREE housing for the past 5+ years.
Step 3. Blame the lack of home building for the Housing Crisis and NOT the Millions of Turd Worlders that Castro's son has flooded into Canada.
And how do you propose we do that? Every single cost involved with housing has skyrocketed and that cost has to be passed down to the consumer. Also the amount of regulations on bureaucratic delays adds immensely to the difficulty of constructing homes as well as the time it takes to build them. No company will volunteer to build homes at a loss to achieve that goal.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
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It isn't slowing down the housing market in North Bay. I've been outbid 3 times because I'm unwilling to get into a bidding war. Prices going up not down
Note that they now call a "home" a condo townhouse or high rise apt. A few years ago it meant a single family home where you could raise kids.
Federal, provincial,and municipal govts treat housing as a cash cow. 40% of your payments go to these govts. Thats why two incomes cant buy a house one could 30 years ago
How does 40% of house payments go to governments?
@@jasonthompson7230your government is the broker middleman trafficker call it what you want
You can raise kids in a condo or a townhouse. Nothing is stopping you
@@tiberiusb3780 even rats deserve better than that who the hell would live in a condo that’s insanity impractical is always an undermining
@@tiberiusb3780says someone who has never had kids
And yet house prices will continue to increase. I’m convinced half the Canadian population could go broke, and house prices would still rise! Go figure
I agree!
yes it will triple year 2025😂
Because investment trusts are buying it all up, using those Canadians who put their money into it.
Home prices are down 10% where I live.
@@IroncladTrading ridiculous sentence.
Housing market is thousands of markets.I can assure you, any house that is desirable will never go down.
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@@rahmatumustaph1609Exactly and many of us don't know where to invest our money so we invest it on wrong place and to the wrong people
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Our city has a 1.5% vacancy rate. Rents are ridiculously high. People are selling their homes and looking for rentals instead of buying.
You have to do it now, they are smart... before no one will buy. I'm staying in my house but I sold my rental last year when I saw everything going up. Plus, I had debt to pay off.
If you can walk with 100s of thousands for doing nothing but buying a house in the right province you've won a lottery take your money and run.
Who is selling in this market? Since rent is so high, its better to rent.
@@schmo7777correct. I just sold and am in a rental. Just closed before my mortgage renewal.
Rentals have increased by 35% in three years where I live, because during low interest rates, investors (i.e., landlords) used their other properties' equity to outbid first time homebuyers. Now that interest rates have increased, they're not paying the mortgage: they're kicking out their tenants using family members, getting new tenants, and jacking up the rent.
If you're a renter in Victoria, you will never be able to save up a downpayment because you're using everything you've got to pay for someone else's bad investment.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
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SCAMMERS
We should follow the example of Singapore and have the government actually build rental housing the way it used to, instead of subsidizing fat cat developers and landlords. Also, reduce the immigration rate to a level below that of new housing construction and keep interest rates at these new normal levels. Voila, housing will become affordable.
Isn't Singapore real estate sky-high? If it is, then no.
@@Cafeallday222 Real estate =/= rentals
That might have helped like 10 years ago.. maybe
Lol you morons want more govt?
10 years too late
Canada and Ontario keep making it easier and cheaper for developers, but those savings are not passed onto the unit owner/renter. It’s just lining the already fat pockets of developers selling/renting units at record high prices and with no rent control on unit occupied after 2018.
Also removing the developer fees they would normally be paying to cities/town hugely impacts their budgets for things like amenity and park space throughout the city. The only way to recoup this is raise taxes, further impacting the home owner and housing affordability.
Cutting developers slack is not the way. It’s the political tale as old as time: the rich get richer and politicians need rich friends.
What people don’t hear about in Texas where housing is approved in 3 months. Is these homes are not subject to continual and long term freezing conditions - a lot of homes don’t have basement. A lot of these homes/properties end up with flooding on the property when it rains because the lot grading was not designed and approved through city review. It easy to blame red tape, but holy we do not want to cut the engineering review in the sanitary sewer design or building code review. Production homes made by Peter’s company Mattamy are already garbage quality, imagine if we dropped the red tape haha, sheesh. And he’s got the fattest pockets of them all, he is not an advocate of good information.
Your clueless.
If it was truly more cheaper for the developers, then there would be a "race to the bottom".
The truth is, it cost $300k in FUCKIGN PERMIT FEES alone.
Just because you decided to build a house in Canada, you will now pay a $300k fine.
Every single house you see on the street, can have $300k subtracted from the price, if the government of Canada ceased to exist tomorrow.
@@honkhonk8009 lol $300k where? Maybe a $5M custom house in prime Toronto where they need to run new one-off servicing to the lot. don’t take a [random] figure from [maybe] the top 0.5% act like every single new house Canada wide, or even Ontario, or BC, has a $300,000 inclusive development fee on it. That’s a pretty stupid claim. Keep skewing and making crap up though.
You think a small township is pulling in $100-150 million in fees for a new subdivision? lol gtfo. Talk about being a clueless sheep
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What a terrible year it is…
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New immigrants can't afford mortgages now unless they are cash buying in full. Even Canadians making 100k each, and 200k as a couple can't afford mortgages at 6% fixed. Most likely the immigrants coming in are low skilled labour, and the wealthy coming in aren't going to work at all. Productivity is declining at a rapid rate and also our GDP per capita. Quality of life is declining, and the cost of living is increasing per day with high inflation.
This country has VERY hard times ahead. Consequence of 8 years of Trudeau
200k as a couple can easily qualify for a home at 6% fixed, just depends on where in canada and what type of property
@@luigit9321 Incomes not enough to cover elevated carry costs/ opportunity costs at current valuation. Either CAD needs to drop a lot (inflation) or house prices need to come down a lot.
I'm adding bunk beds to my rental units. Problem solved, lambo soon.
lol@@elai3147
Lowering interest rates for entities buying up land and building rental properties not houses that will become a long-term generational home. This is not going to benefit the average consumer this will benefit corporations that buying up land and build rental properties on mass this is one more step towards never own your own property.
Canadians are out of money. New construction jobs take 5 years or more to complete on a good job site. Delays are expected in construction. Inflation has pushed house prices to high for average consumers. Forclosures & bankruptcies are up. This recession will destroy many. Canada has no money for food, paying bills or housing.
This country has VERY hard times ahead. Consequence of 8 years of Trudeau
Man I was on a pretty big site for Kamloops, and the concrete forming carpenters had 2 decent guys and 6 idiots staring into space....
I wouldn't buy those condos lol.
@@luigit9321 Guess you're new to discussions on the economy...that's not how it works...
@@luigit9321lots of clear title home owners not worried
Good they deserve it for voting for idiots and acting like idiots.
"In Canada, we're obsessed with bureaucracy and red tape". Its worse than that: in Canada we're addicted to big government getting its hands into everything...making everything slow, expensive and inefficient. We want to make interest rates and inflation go down...then reduce government size by 40-50% at all levels.
In Canada we’re addicted to real estate as an investment and not just a place to live.
Ah yes, cut the red tape and let the developers run wild. Just wait and see the problems homes, condos and properties will have. lol don’t believe the “red tape” excuse. It’s coming from the Uber rich developers and is just like cigarette companies in the 70s saying they are healthy
@@polishthedaybetter investment than the stock market, and we are over taxed, so retirement income is important and if you do not work for a government, you try to maximize your ability to create savings…unfortunately.
@@andrewsbbqcutting red tape does not mean stopping building inspections and permits…more likely having the years to wait for zoning changes and silly environmental studies to be done. In many cases, it can take 2 to 3 years before a shovel can be put in the ground. The new homeowners are paying for the financing costs on that land.
@@roykowalski4125 lol @ silly environmental studies. You lost all credibility with that comment. You must be a developer. Canada has too many critical water systems to overlook ESAs and adverse soil conditions
Financial costs on the land? Do you know much land developers own and are hoarding? A lot, especially along the 401 corridor where they are waiting for Regions and municipalities to provide servicing close enough for them - sewage pumping and treatment facilities, Watermain transmission.
If you bought the "red tape" act then you're a gulible fool and likely buy everything a politician tells you too.
Making an uninformed opinion is also known as ignorance
4:16 - Sure, but when you buy five years ago when the interest rates were 2%, why on earth wouldn't you lock that in for the longest term available? People were basically gambling with tens of thousands of dollars hoping they might save a few hundred. If I could have locked my rate in for 25 years, I would have.
All the locked rates will be renewing in 3 years. Gonna be a wave of defaults or everyone gonna be renting sharing rooms with the endless immigrants they bring in and need to get used to curry and other cultural differences if you're sharing the same toilet and kitchen.
Bank were telling these people lies
A more disturbing trend that home owners were doing for the past 20 years is taking equity out of the home every year. I know many people that were constantly doing this. As the value of their home increased, they would go to the bank to refinance and take that additional value out and use it for a vacation, or boat or new car or whatever. If people hadn't done that, their mortgages would have declined over the years and a rise in rates would not have hurt them. I have no sympathy for people who did that.
@@antonellaprovenzano270 except the bank of Canada has been telling people for years to get their debts under control because interest will eventually go up.
Lock in for 25 years? What the hell are you talking about? Most banks only offer 5 year renewals.
I was 8 years old during the 2008 housing crash.....i wont make that mistake again.....
You has a mortgage at 8 years old? They really DID approve anybody.
Prices aren't going to drop as long as the government maintains the unsustainable population growth rates because there will be so many people competing for the limited available housing. A decreasing but still large enough number of of people looking for homes will be able to buy them, locking out many young people. When governments create artificial demand due to their population targets, it needs to be balanced but the current numbers are anything but balanced or sustainable.
That's right. The immigrants will just start stuffing 4 people in each room.
@@schmo7777Well, four families, with four to six income earners in each house, is more likely.
Not everything is purely because of Immigration. Immigration affects rental housing the most and effect is immediate, which benefits homeowners who are renting out their 1st 2nd or 3rd home. Most immigrants don't buy a house until after few years (3+ yrs) of immigrating. If someone has to be blamed it is those people who buy multiple properties and let it sit idle out there or just airbnb it thereby putting pressure on would-be renters and the market and pricing out young people.
@@itsjustramblingsa million people a year. A MILLION. There's is NO chance that housing prices will fall, the middle class is going to vanish. The majority of the immigrants come from poor countries where they are used to living in high density conditions.
@@Peglegkickboxer Look up the stats the majority of immigrants only make $30,000 per year for the first few years when they move in. So I guess you think all the immigrants that are moving here (majority of which are from India are all millionaires ? )
my take to eventually getting back to a semblance of sanity in the next 5-15 years (its a slow burn):
demand reduction:
1) i-rates don't need to rise anymore, but it also shouldn't go back down by much (unless the US brings it back down post another liquidity crisis or economic slowdown--but it can only happen if inflation is under control by that time).
2) As i-rates stay up, the inflated no-risk perception of real estate as an investment vehicle will go down, leaving the demand a fraction of what it used to be.
3) Higher taxation on RE investments just to put that nail in the coffin to really slow demand and ensure that housing starts are primarily for people who intend to live in them -- that being said, this could affect the supply part so this one would prob need to be thought out in more detail -- maybe incentivize rental properties from a taxation perspective and tax condo/townhome or single-home residential RE
4) Limit immigration. I know this is Canada but we just don't have the infrastructure.
supply increase:
1) with i-rates staying relatively high vs the past 15-20 years but lower than the periods prior to that, incentives to build are down due to high financing costs.
where the government can help are reducing taxation costs (GST/PST), bureaucratic costs (municipal level), etc. -- basically have the governments take a smaller (or even negative) piece of the pie on the side of developers such that the math works for them -- and reduce spending to offset the lower taxation revenue. This is where the conservatives will likely kick in, because liberals/NDPs will not be able to swing it politically (note that I voted left in the past so this isn't me pushing the "right-wing" agenda. Just trying to be reasonable).
2) invest in trades and processed resources (ie. materials), which will control labour costs (prob stands to rise still), lower material costs, and increase building capacity overall (its still a catch-up game). And by investing in labour, training/apprenticeship is a good long term solution but in the short term, it'll have to be either giving foreign companies local contracts or bringing in foreign skilled labour. I would be careful on maintaining regulation to ensure that we don't have "cardboard condos" like in parts of China though--thinking more Korea/Japan with higher quality standards. That being said I don't think those countries have the excess resources right now either so an export-service oriented industry will prob need to be developed/pushed for in trade talks.
3) Look to other countries for ideas on housing structures and zoning. NIMBYism and poor infra dev is a large part of why we have so much space and no housing. Look at Korea's large condo structures that actually have room for families and larger population despite the landmass being a fraction of Canada's (not to mention that Korea is mostly mountains to begin with). [obv some bias here in terms of what I know, but this is an example of how we can borrow ideas int'lly]
You had me until saying Japan/Korea have high building standards, you've obviously never been there.
See, even liberals understand that taxes destroys infrastructure building.
Ban airbnb and short term rentals immediately, with the notion that this will be permanent. This will change housing in Canada very quickly. I think they're saving this bullet in their chamber to really screw homeowners when they're on their last leg.
@@CommoditySC
I manage 20 Airbnb’s. I’m not going anywhere
@@sean4060 Hopefully you put a few dollars away because you're going away very soon.
Hey what if we call 1M refugees, 1M cheap labor, 2M students, can we have houses to be 2-3M and oh by the ways we don't have luxury to lower interest rates. But hey!! There are all these poor bastards who are increasing the demand, so it'll support the price. 🤦♂️
Yes, bullish housing. Real estate to the moon, act accordingly.
@@segasys1339 😂
Home prices are the problem, they'll readjust to current rates it'll just take some time.
A very very long time at the rate we're going though.
Does anyone else think it's weird that they always say "The rates will have to come down!" Never "The home prices will have to come down." I just think it's strange
Suburbs and smaller cities will drop a lot more than major cities. That will be normal.
Demand may decline due to interest rates but prices will deflate much more slowly
Prices will deflate once homes have sat without mortgage payments long enough and the court orders sales. That is what is going to happen. People are already not paying.
Amortization schedule needs to be 60 years with the home prices today. The total interest paid about not be 70% of the home price at the time of purchase
The Developers get the breaks. You don't pay GST on a new house unless you live in it for less than 6 months. Developers sell the homes to investors, the investors rent them out. Now house prices are surging in Calgary. Immigrants are flooding into Calgary and bringing their civil wars with them. You are right about Canada taking it's time to get things approved.
Can you elaborate on that please? The civil war part...
@@c.c.dorrie5795 I guess you might call it a religious war. Maybe? In NE Calgary last week, hundreds of people gathered to bash each other out with clubs and 2x4's. They came from India and in Canada (ex. Calgary) they are still fighting the battles they had in the country they left.
To be fair it's not that many civil wars. Just 2. The Indians vs. Pakistanis and the two groups of Eritreans. Other than that pretty much everyone else is somewhat peaceful.
@@matthewstonhouse156 So, a huge majority of the immigrants then?.. You realize how many Indians are coming here right?
@@matthewstonhouse156 Burnaby, Surrey and NE Calgary. Very high concentration of Indian religious sects. 2 weeks ago NE Calgary had a battle between 2 sects. Most with clubs to bash each other. Burnaby, an assassination. When you brig religion into play, then there are no geographical boundaries.
it's not the high interest rates it's the extreme home prices, low value of the dollar, our labor and buying power of our currency. Average house price in the GTA is higher than the average Canadian earns in a lifetime. The medium of exchange is totally broken and in some ways living off grid/homesteading is easier than participating is society now.
Keep raising interest rates to anchor the dollar. The only way to discipline money is interest rates, gold, or both
How can existing house prices drop when materials to build new are going up ?
There are many places in Canada where a house will sell for less than the cost of construction. Once we approach the inflection point though for a new home, builders will get out of the business
The cost of building a house( only the house) is very chesp. You csn build a 2000sqft home very well appointed for about 150k in southern ontario. The 50k "development fee" and the cost of the land and feesss areway way more thsn yhe actuslhouse.
Interest rates should go even higher. Inflation is a tax on EVERYONE. Interest rates affect borrowers only and a lot of those borrowers were speculators and/or irresponsible.
well, stop spending and the inflation will go down .... people are still buying goods, gas and flying all over the world
@@jeanbolduc5818 The people with money, aren't willing to sit on it anymore. They're increasing their spending before the money is worthless.
High interest rates is only beneficial for bankers
@@guigram1124High interest rates benefit anyone not borrowing.
@@Doctor_Bongyour observation is absolutely spot on. I've also noticed more homes built with garish space and amenities....comparable to forts. Prepper style homes with countless bedrooms, ect.
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
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5-year fixed rates hit 21.75% between August 12, 1981 and October 7, 1981, and life goes on
who cares? The average Toronto home cost $90K in 1981, it was $1.2m last year. House prices went up 13x while incomes went up 3x.
What would you rather have, a 300K home at 15% or a $1m home at 7%?
Two university educated people in their mid 30s can barely afford a starter home in the suburbs today.. In 1980 they could buy a house in Forest Hill...
Yes but a average house was 100,000 tops.
dum pricky
Ron did a great job! well explained
The real problem is over-valued real estate, and a correction is long overdue.
Renting is crazy I’m 21 and I pay 1300 which might seem like nothing but it’s is I only make 2000 a month and I have a 1 year old, buying a house would be a dream for me and my little one but it seems so far away
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Its sad that we're in a situation where people want others to fail in order to purchase homes. People are hoping people cant afford their houses so that houses become available and for a more reasonable price. It's honestly sad.
Unfortunately it is true..Real estate is way overpriced ..It should be at 50-60% of current price.
People will fail because they have over extended in purchases, when they should have lived a frugal and modest lifestyle.
Stfu, if your taking advantage of this artificial state-sponsored market fuckup, then you deserve to go broke when reality hits the fan.
people should understand when you treat homes like stocks on the stock market, you risk its value going down in exactly the same way as a stock on the stock market.
This is all due to a lack of education. When are gov spends more than they have for decades there are consequences.
I hope interest rates keep going up. sounds sadistic but every (expletive) buying income property (e.g. airbnb) are preventing people from owning a home. I hope they lose their shirt.
If Canada wants to preserve the environment and lower the cost of housing immigration must be slowed to a trickle.
As I was scrolling through the comments, I was wondering when someone would say this, the obvious!
Why do taxpayers have to fund developers.
this makes no sense. the demand is rent based and a result of less supply than demand in homes. owned or rented. how stupid.
What is with the left hand on the purple button? Is it a mic cut in case the guest goes off script?
Don't worry. 12k a day are breaching Texas daily. Most headed for Canada. The housing demand here will not plummet. As far ad society staying intact. That's a different question. 😂
Canada is a mortgage jurisdiction, similar to the state of Oregon. It's hard to get IN to a mortgage and also hard to get you OUT. A Deed of Trust jurisdiction like Calif. Texas. and Florida you can get in easilly, but also lose easily. The Bank of Canada rate has played games on Canadians, hiking interest rates every decades often with no reason, allowing people with K|ASH to scoop up housing and have their asset triple in value in less than three years. That KASH often, but not always, comes from cash rich buyers, overseas or not. Inotherwords, like HUD in the USA, Federal agencies and their policy are a very big part of the problem, and Canada's big 5 banks LOVE to say the NO word, and make qualifying very difficult.
Ron is great, really cuts through the bs!
Ron butler is excellent, clear and concise. No fluff.
The only people in their right mind buying houses right now, are the ones looking to profit and use the house as an investment, and not actually a home for their family. That's what got us here, and it's going to keep getting worse. The cycle of people getting a mortgage, just to rent it out for mortgage+profit has got to end!
The government could offer low-interest construction bonds? You get let's say construction loan at 2% below overnight. And since construction cost is low, the price at which a new unit hits the market would be low.
What fairytale are you living in. Construction cost is low, so builder takes higher profits. That’s more like it
Builders will sell for max profit. Buyers ultimately set the price. Low interest rate backed bidding wars are part of the problem.
Very scary what's happening in canada.... broken country on so many levels
It's dead. O quality of life. Waste of money.
House prices come down but interest rates go up. The home buyer pays the same or more per month as they did before, but now they just pay more to the bank and less to the seller.. helps no one but the bank.
5&6% are Not high interest rates, 12-18% are high rates . 5&6% are a normal rate over the years. Over spending and not living with in your means ARE THE PROBLEM....
Central bank and government spending will make Canadians more in debt and poor.
Rates won't go lower. If prices won't be sustained at these rates then they are TOO HIGH
I am with Remax on Vancouver Island. It is rapidly slowing down here.
We are so fucked.
City prices will not drop due to liquidity of new demand. Largest cities are attracting high net worth foreign liquidity
And once again, CBC ignores the problems with the LTB that enables non paying tenants to live rent free at the expense of paying tenants. Until the LTB is completely overhauled and this enormous decades long deficit is eliminated, this will be the world we live in.
million dollar condo in Vancouver or Toronto now has Interest Higher then the average wage in the province they are built in.
Interest rates doesn't have to come down. House prices need to come down to align with the average income.
Wages need to go up too. Ridiculously low for a western country.
House prices are not up coz of low interest rate . House prices are up coz of high demand . It will never come down untill it has less demand .
What if price of food goes up 10 times . Can u stop eating ? Housing is not connected to Interest rates . On top of that people who own 10 20 30 houses don't care about interest rates . They just keep increasing their rents .
The Banks need to make it easier for Mega Property Management Corps to finance more Rental Homes so we can all be Rental Slaves.
Alternatively, the government should make it easier for citizens, not corporations, to build affordable rental properties. Keep the wealth in our communities instead of corpo's pockets.
@@brandonmacdonald7802 Agreed. But the Gov works for the Corps so that will never happen.
its simple math. 6.5-6.8+ percent interest isn't the only issue. Its not like 5-10 years ago where you could purchase a home for 300-500K @ 6 percent. that was attainable for a lot of people. Those same homes are now 1 million + and at 6.5 + % = that's insane!!!. People in 2021 buying homes for ridiculous prices because they weren't educated, or aware of what was happening, bought in to the crazy talks about homes will only get more expensive and buy now or miss the ship etc..... Now their equity as dropped 100K or more, and continues to drop(i suspect 20/30 percent within a year and change)about to face 6.8 percent renewal rate on a million dollar home they probably had no business buying in the first place(low interest rates or not), and now the economy is a ticking time bomb.
I don't ever want to capitalize on someones hardships, but cash is king, and i am ready to punce when this comes to a bad crash. it's not an if situation but a when!
And HERE...WE...GO!
1 Bedrooms FS about to skyrocket
Someone on reddit posted that mortgage brokers in Ontario are falsifying papers to give unqualified people mortgages. They charge them 1000$ to falsify the papers, get them an absurd mortgage with fraudulent papers and pass the risk on to the bank which often doesn’t do its due diligence.
Last time this was happening was 2008 as depicted in The Big Short.
Hopefully some of the new 130k monthly immigrants will go home. We're clearly full.
And bring some of the immigrants already here with them
There is also a labor shortage. The solution is to build more houses. Also, many are international students who are not trying to buy a house.
Maybe Canada should stop bringing in so many people . How are they affording this rent on a minimum wage jobs . People just want to come to Canada to brave to peope back home that they are in Canada even though they are struggling pay check to pay check.
Wages are too low in Canada. Nowhere in the world are wages this low with the cost of living that high.
My realtor told me the market is strong and houses only go up...this is not right what they say on TV....he brought me chocolat too...yum yum
Developers complain it takes up to five years to be able to build due to red tape and labour and construction costs go up 20% a year. Buy the time the project is ready rent or sell the price will always be higher. Also we have 500,000 new immigrants coming each year for the next 5 years. A rate of 6% for 5 years is still cheap. Only the younger crowd thinks it’s expensive because they haven’t seen 21% rates in their lifetime.
Yeah, but the 21% rates were on very cheap houses.
@@tylerdurden8378yeah I don't know that the fuck this dude is talking about. 21% rate normal during the late 80s or 90s. Let me know what older generations from that time that had a house are actually fucking struggling to live in a house. Sorry but if people want to survive, food is number 1. Not fucking beer, cigarettes, and dispensaries, $7-$10 bubble tea everyday, $7-$10 Starbucks special drinks, $5-$6 donuts lmfaoo, since when does sugar and water cost that much? And that's literally the only thing these businesses even sell. Anyone seen these cafe shops popping up everywhere? Chattime? Anyone want some flour balls or corn syrup? I could've sworn MSG causes cancer during the time when the Chinese were swimming or boating to canada during the 70s to 90s. Guess now the Chinese pretty much own everything cause the Canadians in this country are so easily gullible, wasting money on sugar, water, plastic cups and compressed air
@@tylerdurden8378Bingo!
@@tylerdurden8378They only seem cheap compared with today but when you were earning $500 a month they weren’t.
When salaries were much lower.
Check out the price of lumber, concrete, wire, roofing, etc. and you can’t build a house for what they are selling for. I built my own small house and still spent over $350,000. If prices drop further, I don’t know why anyone would build a new one.
@jameswilliams3304 I would disagree. I’ve worked as a plumber, carpenter, sheet metal mechanic, gas fitter, roofer, concrete finisher, electrician and a few other trades. It is material cost that have gone way up. Wages have hardly moved. A journeyman sheet metal mechanic made $27/hr in 1981 when I apprenticed. They don’t make much more than that 40 plus years later.
If you think rents are high, try paying a mortgage + property taxes + condo fees (if applicable).
3 things that could turn this around in a year.
1- lower the interest rate for first time buyers to 2% while maintaining the current rate for developers.
2- replace most if not all of the House of Commons idiots with A.I. and see how they like it
3- eliminate the carbon taxes all together
You’re welcome
Baloney. Rental companies are buying up houses as they have thr cash and can charge whatever rent necessary. On my street alone the last 5 houses were bought by a Ontario firm. This is nova scotia.
Affordability is with the distance and don't blame mortgages all the time because of the property values are assessed on the location influenced by local markets in capital value based on state of economy in industrial activity in Microeconomy.
no mention of how ridiculous materials costs soared to either, which makes even basic reno projects in order to adhere to coding or bilaw standards, almost impossible for some. not to mention how many people got burned when during covid, they waved mandatory inspections. so many people bought lemons with 30k worth of work needed, which then required 60 worth of materials due to massive inflation...and many of those people passed that on to renters like myself. fun times to be had all around.
not just interest rates, developers have large profit margins built in and construction companies waste a TON of materials in the conatruction process. there is plenty of inefficiencies on the developer and construction side of the business, but no one wants to admit it.
The biggest scare is coming in house taxes all these homes have gone up over the past few years now it is time to for them to access the value of your home and raise your taxes. Then add that the interest rates have gone up and when so many peoples homes are coming due to renew and can not afford the payments let alone even be approved for the higher interest payments. Oh , we do not want to forget that so many people are strapped by the high cost of food and cost of living. When you are having problems look at all the politicians and the rich who are causing this and the reason is so they can get richer when you can no longer afford your home they will buy for pennies.
Canada is 1.2M homes short of the G7 average and has the most ambitious immigration policy in G7. This lack of supply means home prices will not go down anytime soon. People need housing and if they can't afford to buy a place they will try to rent and due to lack of supply the rent prices will go up so owning an expensive home will make sense again. You can't break the cycle of housing cost increase without a constant supply of affordable housing projects. If all levels of government make the affordable housing their number one priority, it will take minimum 10 years to see any significant cost reduction. The other bottleneck is the availability of construction workers which comes with its own set of complex challenges to be resolved.
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Lets put the crazy away for a second. Every Canadian knows how bad the Trudeau government screwed avg people regarding home mortgages and housing in general. Here's a common sense thought...
1. We do as the USA and have mortgages with fixed or variable rates for 10 to 30yrs not 5yrs. And allow homeowners to get tax credit on the interest.
2. Even a 2 yr old could tell ya that you can't open the perverbial floodgates on immigration and not have the housing infrastructure in place 1st.
3. Remove the stress test. Frankly, if people buy a home to become mortgage broke its their problem for being stupid.
4. Provide a modest tax credit to those renting their properties/basement or rooms to help existing Canadians 1st to find a roof over their heads BEFORE you open the doors to immigration
5. How about a fair market price cap on all new built homes. No more allowing builders to charge ridiculous margins amounts while receiving gst credit which does nothing for a Canadian trying to get into the housing market.
Remember, its home owners that keep the economy going..they buy furniture, appliances, use contractors for upgrades, buys things for the house, pay (ridiculous) property taxes that pay for local transportation, sewer, water, fire, police, education, etc.
Give the avg Canadian breathing room to buy a house and watch the economy flourish with happier people living in them.
The stress test isn't to protect the person buying, its to protect the bank lending.
You can't remove the stress test in a country where a person can't walk away from mortgage debt. You're comparing apples to oranges. I agree with you in principle, but mortgages are government backed in Canada.
@@CommoditySCactually, the Government backing the mortgage, banks don't hold mortgage "assets" on their books. They sell them
I love that the closed captioning picked up condos as 'conned us'
Nothing will change the price of property while there are more people than places to live and we can't build fast enough to keep up with the amount of people we have
Canadians may be out money to buy houses, but Blackrock isn’t.
Prices aren’t going down.
Blackrock isn't dumb enough to pay 7% mortgage rates on a home but Canadians are!
The CCP is more of a threat than BlackRock. Blackrock has their hands full with the U.S.
and they won't for many months, prices for houses take a long time to fluctuate. Especially when we talk about lowering prices. Give it 12 to 24 months
Does interest rate go to Black Rock and it's above 😂
And Blackrock can't support the entire housing market lol
Rates are still historically on the low end.
Pretty much right now people arent willing to sell and buyers csnt afford. Something will give. Why would anyone want to sell at a loss? (If they didnt have)
This is why the BoC can't raise rates much further. The entire financial system is based on debt especially mortgage based debt. The banks are highly leveraged in this area and could be in big trouble if people can no longer make their loan payments at these higher interest rates.
Or, the price can just drop. We dont need lower rates, just true prices, and it sucks for people who bought over priced leveraged assets in the past
Plenty of jingoism, euphemism and corporate double speak from the "expert" guest... coincidentally all complaints if adjusted his way make developers and real estate brokers richer but do nothing to alleviate demand or the crisis of non-affordability. Why is there no mention of the speculators who own 2, 3, 4 properties? Or, why no mention of the builders refusal to take on rental development because they want government hand outs first? It's not about profit, but easy money. And just for the record does Texas honour environmental concerns? Does Texas tie development to larger infrastructure? Wasn't it Texas that had a small winter storm wipe out their entire electric grid for weeks, a couple years ago? And we want this because?! Corporate bs, all of it. Capitalism is good, profiteering and gouging hurts everyone.
One of the main reason we have higher house prices is due to the money printing which cause inflation and the debasement of our money. We need to cut the spending and the size of our social system.. Too few people are net tax payers for all the services we get and give out.
yup... though many people will be in upside down mortgages when the prices crash.
Rubbish. Current mortgage rates are actually a pretty reasonable rate. My parents bought a house in the 80s and the mortgage rate was 19%. What drives demand is population. Alberta had a 4% growth rate in population. Unprecedented in Canadian history. Housing prices will only increase.
Ontario is a corrupted province with Doug Ford and Toronto have always had weird mayors
I said over and over boc must keep increasing mortgage rate in order for the housing prices to go down.
The rate hikes are a signal from the bank of Canada to tell the Government to stop spending and pay down our debt because it's causing inflation.
But the big thing they didn't really mention is that houses are still vastly over valued. We need to get back to $200k - $300k houses again. Let the people who over spent and honestly deserve to go bankrupt... let them. and lets get back to sanity before we have a massive market crash like they had in the States
Last time we had $200-$300k homes, interest rates were 20%. Guess what a $300k mortgage costs at 20% interest? About the same monthly mortgage as a home worth $1.2 million at todays interest rates so it’s still unaffordable
@marvinsulzer8258 Maybe in Toronto, but most places were like $100,000 when the rates were 20%... which at that price is manageable.
Even at high rates, $800 - $1200 a month used to be a mortgage payment. Now that's not even half a rental payment for a house half the size.
We know what is causing the issue. The problem is that they aren't willing to fix it because it's gonna be painful and a lot of people are going to lose their homes... but that's better than everyone losing their homes
I keep reading such titles for years. I never believed in any of them, and home prices continued to rise during all these years.
Great video! For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
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If the Canadian government can give over $9 billion to Ukraine, they can also invest in the housing market to make it better for us.
No sorry, they actually can't. That would make us better off, instead of the bankers who run us.
NO we must support ukraine first! they are dying but you are only living and shivering on the street. /s
Developers already get handouts. The government can’t force corporations to perform work. They’re not doing it because the profit margin isn’t good enough for them.
This isn’t a government spending problem it’s a corporate greed problrm
This is it. Government needs to get involved with building rental housing like they used to and stop wasting money on someone else’s war
This is not just handing over 9 billion dollars in cash. People like to make statements without full disclosure. Do you know how many Canadian jobs are involved in that 9 billion? Money is being used to build military vehicles and equipment IN Canada, for Canadian corporations, with Canadian employees, feeding their Canadian families. IT is not handouts.
Good news. Canadian real estate is dead. Nobody wants it anymore. There are so many better and friendlier countries out there
Average household income ontario is 97,000. Average home price 650,000. Who is buying these houses? Not an average Canadian.
REITs are part of the problem. The commodification of housing has created this mess. We need rental housing built by the public- not the private-sector. FIRe, driven by profiteering, always comes out on top regardless of whether the market is up or down. For the average renter or homeowner, shouldering massive debt, there’s a world of pain still to come. Canada now has the largest housing bubble in the history of the world. Keep that in mind next time you’re thinking of picking up an “investment” property.
My dad who has had the same job for almost 40 years could barely qualify for a mortgage on an average home
They should get rid of the hst on all building materials. Eliminate a huge burden of accounting. That way Canadians would also make additions to their homes adding rental units
And no one is going to build a rental unit with strings attached. ie that it can't be sold or modified. Less regulation and watch the boom in rentals