Central bankers intent on raising interest rates are hoping that it only impacts one facet of the economy: consumer demand. Their reasoning is that unemployed people have no means to bid up the price of cars, TVs or food.
But an economy is not a series of disconnected linear relationships. It’s more like a matrix, with impacts going off in all directions that are very hard to predict, much less control. It looks like the housing market is starting to feel that impact. How long until the damage spreads to the lenders and the banking system itself?
Buyers slammed on the brakes last month. The number of houses sold in Toronto declined 26% in April compared with March, according to the board’s seasonally-adjusted data. Vancouver home sales also dropped sharply.
What? The ChiCom foreign nationals have fewer Loonies to spend? That’s gonna hurt home values.
Let the eastern bastards sell their homes well below asking in the dark.
not too concerned. tranna is losing its luster, retirees are gonna be the biggest demographic right when lm ready to sell my place elsewhere is sw ontariowe. jeepers, sell in tranna for 2 mill, buy within 100 kms for less that half. sounds like a plan!
gonna take the money and run.
Perhaps our bought and paid for media will do their bit and keep a lid on this sort of talk. I suspect that there are stakeholders with agendas, too. If/when this ‘Crash’ occurs, it will not be subtle. This would make a great Happy New Fear/Merry Crisis event. The current crisis will lose luster, and this would make a fine replacement. Pencil it into your notebook. Maybe in a few weeks.
There is no doubt in my mind that if some sort of crash did take place, the Trudeau government in all their wisdom would find some costly way to bail out home owners and reimburse them for their “loss”. I know so many people who bought $125,000 houses here in Saskatoon that are now worth over $450,000 and they all hold the mind set that they are entitled to that 250% increase in their home value. When hearing of news of a possible 20% price drop they are shreiking that the “Government can’t allow that! That is our retirement!” And I know they are right. The government won’t allow that. They will use every costly tool available to them to keep the artificial housing bubble inflated because it would be political suicide for them to let home values correct to where they should be.
Even governments have limits, and the FedGov ain’t no match for the might of the U.S. or China; if a major recession’s in the works, The Hair That Walks Like A Man™ is gonna find out how much fun governing a broke and angry populace will be. He won’t like it.
Unfortunately, neither will the rest of us.
you said it GW
enough voters in Canaduh will keep the trust fund brat in the PMO. he will be pm when the shtf. funny how 3 of the starting letters are in the 1st word, which is a 4 letter word. this is easy bashing trudeau theres so much to aim for.
You Believe In Fair Elections?
Wham…
Reality Sets In
Also
Vaccine passports digital ID was the Trojan horse towards wider government digital ID surveillance and control in society – leading to a central bank digital currency (CBDC) and social credit scores. This is not a conspiracy theory, the mission creep is happening right now.
https://mobile.twitter.com/JamesMelville/status/1521760636166107137
I live in Toronto. The condo I live in has been sold; to tear down and make a bigger condo. The lady upstairs from me was in tears when the place was sold. She cannot afford to stay in Toronto, despite her windfall. She dreads moving away from The City of Light.
Anyone who thinks the government is their benevolent saviour deserves to suffer.
A house in my old neighborhood, hasn’t seen any upgrades since the 60s and loaded with asbestos products and a couple of chain smoking liberals, valued at 129,000 but priced at 210.000 went for 370.000. Seriously a two bedroom badly built cape cod went that far above appraisal. How can people afford to renovate when you pay so much above the appraised value? I recently got my quarterly investment report, I’m bleeding money thanks to Biden and Justine/Singh policies. At the rate I am losing money retirement will be short lived thanks to the liberal NDP unholy alliance.
Rose
Around here 2 million selling price, and the first thing that happens, a bulldozer is applied, and full reno goes on. Mostly foreign money, and NO mtg on the place
U.S. Fed just raised rates by 1/2%. American housing market will feel the brakes slamming on in the next few months.
Naturally this has nothing to do with the US fed/govt printing trillions of dollars; while all of the other nations print proportional amounts per capita – in lockstep – since 2020.
LockStep
Where did I hear that before
Oh that’s right
Event 201
If you don’t know what that is
It Happened in October 2019
Why does the policy stating that the poor / middle class “won’t have money to spend, so inflation won’t affect them” sound something like “starve in the dark, pesants!”.