How the hell can we have an economic recovery and be globally competitive when housing prices are through the roof? I can pay a guy in Mexico $200/month and he can live a decent life down there. In Canada, you need to pay $4000/month and even then they are just scraping by. Harper left Trudeau a frothing mess, he created a massive housing bubble to give the illusion that the economy was amazing. Well everything was amazing in the US in 2005, look how that ended. We didn't even correct in 2008, so our bubble is many times greater!
+David Frigault When this housing bubble pops...It's going to be worse than I realized...There will be bail-ins of banks, TD, Scotia, RBC, HSBC, CIBC, all going to lock in money and bail-in. My sources are telling me this one will be historic, with countries going bankrupt like dominoes. He said, watch Europe, the EU collapses you have two weeks before the banks close for a bank holiday and everyone looses their deposits. Since you took the time to respond to my comment, I think it would be rude to not warn this will be bad beyond our wildest dreams.
David Frigault David, we are talking Greece, people starving, digging through dumpsters for food, hospitals won't have money for medicine. Make sure you have some spare food, the banks won't be open for a while.
+Fuzzy Camel Actually there have been several, short and shallow corrections of about 10% in Toronto. In 2009, 2013 and 2015. Last summer there were more houses for sale and they settled a bit lower.. they were picked up in oct-nov and there we go again.. If you're waiting for a big crash, good luck!
David Frigault But Russell 2000 is actually doing even better since the '09 bottom. Big banks are not a good example, in fact it was expected they'd have to get leaner - they face more regulation, now also more competition.. In Canada a lot of their lending business is being picked up by smaller firms, facing less regulation. Is it good or bad, I don't know, but pretty much in line with the expected fallout from the '08 crisis.
Look at the other countries that contain the cities with highest living costs. They are all competitive, with the exception of maybe Russia which is just a petrol station.
We've owned four houses in several countries. We bought what we could afford, heading for the suburbs and outlying towns until we found something affordable for us. Some of the houses were better than others. The mortgage rates we paid were up to 13.5%. (Peaked at 19%.) It wasn't easy. For a long time, our furniture was all second hand. With three kids it didn't make much difference. We bought second or third hand cars. We didn't think we were doing badly. We made money generally over the years, but if you take the price of rentals into account, we've done very well - even after a 20% slump.
Looking at 60 yrs of Toronto housing prices it takes someone who bought at the peak of the last bubble in 1989 twenty two years (till 2011) to have the house return to the price paid in 1989, inflation adjusted. I think most people don't know about the last bubble in 1989 and would be shock when they find out after the real estate bubble bursts.
Reputable analysts say interest rates will stay low for a long, long time.. giving you opportunity to pay down debt. In fact many have done just that. Home owners have generally low debt.. obviously the recent purchasers have more - not a problem.
Canadian housing as a correction every 18 to 20 years that's a documented fact. In that 18 to 20 years there always been an increase of 15 to 20% . Then the correction of 10 to 15%. Now because of low interests rates we add 300 to 400% increase in 27 years. With the US loosing there status as the world currency Canada will follow with a very very low dollar. High inflation is coming so who will be able to by a house. The correction coming is going to be huge not 20% more like 75 to 80%.
If people bought for the long-term they’ll be fine, housing prices will rebound. If they bought for short term gain despite the warning signs then they should suffer the consequences - pigs get slaughtered
+Rawdiswar Exactly. Pay $1200/month rent, or pay $1500/month mortgage + taxes + hydro + insurance + maintenance + real estate fees + transfer tax, etc.. With the mortgages so high, you are paying off mostly interest for the first 10 years, so renting makes a lot of sense at this point.
bushstalker For the last 17 years, Canadian real estate has been a wonderful investment. But we are near a top. I've made far more money than that off real estate, so I am not anti-real real estate at all. I just see too much debt, prices going up too quick, and better investments are out there. At this point, it is unsustainable and gone up parabolically the last 3 years. Every time it goes parabolic, the blow off top ends in a crash. This is just a good time to sell and rent. Take profits.
Late reply, but yeah it has mostly posetive things the lower the house price the better if you have a house to live in. Only if you want new lines of credit like a car loan it might work against you.. For the rest only ppl who speculate lose out.
Lack of housing in the GTA is driving houses up. Another cause that is driving the cost of houses up is bidding wars! It needs some controls in place. The less expensive homes that first time buyers are seeking are getting bought out, and flipped. We were house hunting in 2016 it was common for a home to be listed at $350,000 and would be sold for $390,000 with no condition. If any conditions were offered you would not get the house even if you were the highest bidder. Soon the high cost of homes will have less people in the market because they simply can't afford them. Raising interest rates is not the solution!! Greed and a lack of housing has caused the prices to surge.
***How the hell would a price decline in housing affect young first time buyers? I think it may affect them positively with reduced mortgages. Sounds pretty positive to me. I hope it happens soon***
Yeah, but wouldnt they be owning those homes long term anyways (25 years) or do you think they intended to flip it like alot of other greedy speculators?
In the late 19 century in America we had deflationary prices and growing GDP. Everybody wants lower prices. The cure for a lower price is lower prices. The cure for higher prices is higher prices. That’s what’s happened to Counter right now house prices are too high and that’s the cure to get them lower
Warning? Our currency is backed by debt, it's losing it's value due to inflation! Ask any older person how much they needed a month to retire say 1970 and now. $1 is not worth $1 anymore!
How the hell can we have an economic recovery and be globally competitive when housing prices are through the roof?
I can pay a guy in Mexico $200/month and he can live a decent life down there. In Canada, you need to pay $4000/month and even then they are just scraping by. Harper left Trudeau a frothing mess, he created a massive housing bubble to give the illusion that the economy was amazing. Well everything was amazing in the US in 2005, look how that ended. We didn't even correct in 2008, so our bubble is many times greater!
+David Frigault When this housing bubble pops...It's going to be worse than I realized...There will be bail-ins of banks, TD, Scotia, RBC, HSBC, CIBC, all going to lock in money and bail-in. My sources are telling me this one will be historic, with countries going bankrupt like dominoes. He said, watch Europe, the EU collapses you have two weeks before the banks close for a bank holiday and everyone looses their deposits. Since you took the time to respond to my comment, I think it would be rude to not warn this will be bad beyond our wildest dreams.
David Frigault David, we are talking Greece, people starving, digging through dumpsters for food, hospitals won't have money for medicine. Make sure you have some spare food, the banks won't be open for a while.
+Fuzzy Camel Actually there have been several, short and shallow corrections of about 10% in Toronto. In 2009, 2013 and 2015. Last summer there were more houses for sale and they settled a bit lower.. they were picked up in oct-nov and there we go again.. If you're waiting for a big crash, good luck!
David Frigault
But Russell 2000 is actually doing even better since the '09 bottom. Big banks are not a good example, in fact it was expected they'd have to get leaner - they face more regulation, now also more competition.. In Canada a lot of their lending business is being picked up by smaller firms, facing less regulation. Is it good or bad, I don't know, but pretty much in line with the expected fallout from the '08 crisis.
Look at the other countries that contain the cities with highest living costs. They are all competitive, with the exception of maybe Russia which is just a petrol station.
We've owned four houses in several countries. We bought what we could afford, heading for the suburbs and outlying towns until we found something affordable for us. Some of the houses were better than others.
The mortgage rates we paid were up to 13.5%. (Peaked at 19%.) It wasn't easy. For a long time, our furniture was all second hand. With three kids it didn't make much difference. We bought second or third hand cars.
We didn't think we were doing badly. We made money generally over the years, but if you take the price of rentals into account, we've done very well - even after a 20% slump.
Looking at 60 yrs of Toronto housing prices it takes someone who bought at the peak of the last bubble in 1989 twenty two years (till 2011) to have the house return to the price paid in 1989, inflation adjusted. I think most people don't know about the last bubble in 1989 and would be shock when they find out after the real estate bubble bursts.
Why live in a city where things are so difficult and expensive?
Reputable analysts say interest rates will stay low for a long, long time.. giving you opportunity to pay down debt. In fact many have done just that. Home owners have generally low debt.. obviously the recent purchasers have more - not a problem.
When have rates stayed anywhere, for a long, long time? Reputable analysis said the UK would stay in the Eurozone with 8:1 probability.
Speculation on house price is a sin.
Canadian housing as a correction every 18 to 20 years that's a documented fact. In that 18 to 20 years there always been an increase of 15 to 20% . Then the correction of 10 to 15%. Now because of low interests rates we add 300 to 400% increase in 27 years.
With the US loosing there status as the world currency Canada will follow with a very very low dollar. High inflation is coming so who will be able to by a house. The correction coming is going to be huge not 20% more like 75 to 80%.
20% housing correction already happening in YVR as of today
If people bought for the long-term they’ll be fine, housing prices will rebound. If they bought for short term gain despite the warning signs then they should suffer the consequences - pigs get slaughtered
In the real world people panic when they hear sales down 80% and prices down 20%. This puppy is just getting started.
Needs to happen.
Housing = greed market
It is fine if you can stay in the same place but for those building a career they might be stuck.
oviously it's better to make payments than pay rent. Rent is money you never see again. Further of the two. Payments are typicly cheeper by the month.
+bushstalker And monthly payments are the only thing that matter. You don't get it.
+Rawdiswar Exactly. Pay $1200/month rent, or pay $1500/month mortgage + taxes + hydro + insurance + maintenance + real estate fees + transfer tax, etc.. With the mortgages so high, you are paying off mostly interest for the first 10 years, so renting makes a lot of sense at this point.
bushstalker For the last 17 years, Canadian real estate has been a wonderful investment. But we are near a top. I've made far more money than that off real estate, so I am not anti-real real estate at all. I just see too much debt, prices going up too quick, and better investments are out there. At this point, it is unsustainable and gone up parabolically the last 3 years. Every time it goes parabolic, the blow off top ends in a crash. This is just a good time to sell and rent. Take profits.
bushstalker
you will be flushing a lot of money down the drain when you buy a property anyway.
Isn't it better cause they pay less property tax, I mean assuming they use it to live not for investment
Late reply, but yeah it has mostly posetive things the lower the house price the better if you have a house to live in. Only if you want new lines of credit like a car loan it might work against you.. For the rest only ppl who speculate lose out.
Lack of housing in the GTA is driving houses up. Another cause that is driving the cost of houses up is bidding wars! It needs some controls in place. The less expensive homes that first time buyers are seeking are getting bought out, and flipped. We were house hunting in 2016 it was common for a home to be listed at $350,000 and would be sold for $390,000 with no condition. If any conditions were offered you would not get the house even if you were the highest bidder. Soon the high cost of homes will have less people in the market because they simply can't afford them. Raising interest rates is not the solution!! Greed and a lack of housing has caused the prices to surge.
this guy doesn't sound like he is very smart or telling the truth
***How the hell would a price decline in housing affect young first time buyers? I think it may affect them positively with reduced mortgages. Sounds pretty positive to me. I hope it happens soon***
Bad for young homeowners (as in ppl who bought before it happened hence the owner part :P) Great for first time buyers who didn't buy yet.
Yeah, but wouldnt they be owning those homes long term anyways (25 years) or do you think they intended to flip it like alot of other greedy speculators?
In the late 19 century in America we had deflationary prices and growing GDP. Everybody wants lower prices. The cure for a lower price is lower prices. The cure for higher prices is higher prices. That’s what’s happened to Counter right now house prices are too high and that’s the cure to get them lower
What was THAT right at th end by the host; "it's just too easy, on the internet, you can spend money, yeah..."
I've bin waiting since 2001 for a crash or correction. What's going on? It's bin 15 years. .. Yawn...
There was no bubble in the year 2000. The metrics were nowhere near as crazy as they are now.
Ian H I'll wait another 15 years 😤 I guess by then I'll be 60... Damn
Rates have come down substantially in the past 15 years. They are not going to go down by an equal amount in the next 15 years.
In a hundred years none of this matters were dead.
Warning? Our currency is backed by debt, it's losing it's value due to inflation! Ask any older person how much they needed a month to retire say 1970 and now. $1 is not worth $1 anymore!
Retire to a cheaper country.