NP- Canada’s unhinged housing market, captured in one chart (click on it for full screen)
Canada’s rate of housing prices increase is far more than any other developed market in the world and has given rise to a new economic term to describe the market: ‘shelter inflation.’ Yet what alarms David Doyle, head of North American Strategy & Economics at Macquarie Group, a global financial services organization, is how out of sync Canadian housing prices are with other important factors — such as income and people’s ability to pay for their high-priced homes in the years ahead. “Prices are totally disconnected from the fundamentals,” says Doyle.
Everyone needs a plan B.
I sold my house two years ago, I lost the eighty thousand I Put into it. I renovated every single inch myself doing most of the work. I sold it for 180-000. The people who bought it sold it two years to the day they bought it for 9999999999999999-300 plus and never put a cent into the place. Can’t imagine the house will ever be able to be sold at that price ever again-but I could be wrong.
I enjoyed watching the plan B video…Professional homelessness never looked more enticing!
Plan B is Plan A for Woke socialist enviro-terrorists. The guy who posted that video will be cancelled for cultural appropriation by those who thought of the idea first, those who want us all living full-time in a culvert.
It will be scary when Trudeau follows the Biden administration lead in taxing unrealized gains. The concept that is being pushed for is forcing people to pay tax on the value of their investments before they sell well they still own the investment.
If your home is now said to be worth a million and the tax rate is 5% have fun coming up with the 50,000 to pay Trudeau for the privilege of owning anything of value including your home.
Remember his great reset you will own nothing and be happy about it.
I have an alternative theory that can be summarized in one sentence.
What’s the price difference when the same selling price is converted into US currency?
There is an impact to price inflation when the government is funding its debt on having the BoC print money
I like your idea Joseph. I’m sure that would be part of the problem.
A second strange thing I’m experiencing is I’m trying to sell a property in BC. It’s water front in a good neighborhood. My price is not out of line with others being sold in the area. I’m selling because of BC special tax for property owners that don’t live in the province. Feels like a very Liberal Canadien tax idea.
The only buyer making offers are lowballing me and wanting me to finance them. They want to pay me over many years. I’m not their mortgage provider.
My point is how can these properties be valued so high when the buyers aren’t paying the prices asked?
Recent similar sales in the general area. As we say out here, they’re not building more waterfront.
Historically, the best time of year to sell is early spring thru summer, but ya never know.
And don’t accept any “help us finance” offers, too many shysters and scammers out there to think about trusting that. We have a rec. property for sale right now, and have received a couple of those type of offers. MMMMM NO, effin way. If they have to try that kind of financing, then they have lousy credit and are a bad risk
Our daughter and fiance are shopping for a house in Winnipeg. They bid $10,000 over asking for one they liked, but someone else bid $30,000 over asking.
The uptick beginning shortly after 1999 is due to money in Hong Kong being sent offshore to protect it from the communist government of China. No big mystery it is a domino effect hastened by uncontrolled immigration.
I live in Regina. I plan to sell my house in 7-8 years and hope to get $ 300,000. If I do, I will just break even with the amount of money I have invested in renovations and the development of the basement.
Once again, the wild prices are just in a few cities – Toronto, Vancouver, Victoria, Calgary, Ottawa, Montreal and perhaps a few others.
But, the “wild prices” rub off in the outlying areas too.
The whole Fraser Valley has felt the effects, all the way out thru Chilliwack, you can find million dollar Surrey boxes.
The Okanagan has exploded, Penticton used to be a nice sleepy town, now a million is common. DItto for Osoyoos, which is beautiful for 5 months, and grey/brown the rest of the year.
Governments fell in love with cheap money, and have kept interest rates artificially low, fueling the value of the house market. Its gone on for so long, that raising rates now, will crash the economy, yes it will crash the economy.
Here, north west of Toronto, the prices are ridiculous, as the Indians are buying shit left and right. So every things goes over asking, this is what keeps the Turds economy from crashing, as they bring off shore money into the countries, same as in Vancouver . Oh, and if it sells under a million, it will probably get bulldozed and a new structure built, or major renovations happen. And if new permits are too hard to get, it is easy to get one to replace a burnt down structure:-))))