Many now believe this will continue into the future with every “crisis”. The price of a home is irrelevant to a Chinese in Canada. Do you remember where you were? Canada is a beautiful, peaceful, civilized place, especially compared to its southern neighbour. Your email address will not be published. Aging homeowners will hate dropping prices on their homes. Wages in the last 10+ years have stagnated despite the rise in inflation and RE prices. If you have 10% housing inflation in a year, it never reverses while central banks control the money supply. It wasn’t real wealth, just a ponzi scheme of inflated asset prices. Well then I guess you don’t know about FIRPTA. My husband had an idea that I think is great. You are completely correct that turning off the immigration and cheap money spigot will create a Japanese-style deflationary effect. Real estate – the wealth is there and then it’s gone. But as someone with feet on the ground and a property owner for 45 years now, (a working man still buying property and building structures), this bubble surge is in direct relationship to low interest rates. Add low interest rates and you get the current situation of impossible affordability starting from square one. I didn’t check prices recently, but I think that these are selling for 500k+ with bidding wars probably more. The high cost of out of country supplemental health insurance is why some Canadians no longer visit America for the winter. I would like to think that limiting home ownership to 1 or 2 per person with no corporate ownership might control the speculation, but maybe they would just work around the new rules and continue. Leaned back against a stump and taken down off the hill on the last load of the day. Except that Canada largely requires that immigrants have education and skills. Transportation. What’s wrong with free-loading? That C$500K condo pays for itself in no time if you exploit all the options. Another quirk….the CAD$ has strengthened against the USD around 15% over the past year. It doesn’t seem sustainable… yet somehow it sustains. Also in practice, keeping the Queen’s name on things effectively prevents a citizen taking the Government to court on those matters, and politicians of all stripes, both Federally and Provincially, are desperate to keep this ‘Get out of Jail free’ card. Nanaimo has WAY outpaced Victoria, partly because Vic was already expensive and yes there are quite a few Chinese there and an attractive China town. Not helpful given the already historically high over leveraged household and student loan debt. A housing bubble is an increase in demand, where there is an rapid growth in housing prices caused by an unjustified speculation period. this ‘open carry’ crap. This included upper middle class households. People will be given money, people will be given special loans and modifications, interest rates will remain low. The only good Canada goose is a dead one! They were never at fault. Furthermore, the dramatic cut of interest rates after 20 years of continuous price gains boosted refinancing/HELOC, and without other outlets the money flooded the residential market, pouring gas on the fire. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. The Canadian national housing agency has identified Hamilton as one of the few high-risk property markets in Canada. All potential buyers quit because an offer was received and they didn’t want any competition. We live in Philly, My in-laws have had a cabin for 50 years on a lake 60 miles north of the U.S. border. Bob Moriarity just did a piece on four mining companies in Saskatchewan. World’s biggest bubble in the US was only 10%. Nearly half the people who live in Hamilton County work in low-wage industries affected by the COVID-19 pandemic. Despite recent rhetoric, it usually ends there without any significant structural reform. Demand is extremely strong from first-time homebuyers, trade-up buyers, and institutional investors. For another 20 years? I chose USA. No windows, but they plowed and planted the best they could. Looks like housing HYPERINFLATION to me, in Canada and the US, which has already spread to core commodities prices, and is starting its spread into consumer prices (Tim Horton’s, Home Depot, Walmart, etc.). Owe Canada, we stand on guard for good deals. In fact, one of the stories I read on Canadian money laundering was based on a report by the US State Dept, warning the Canadian govt. Yeah, no one reaches for their heat because you’ve all voluntarily disarmed yourselves. Fitch Ratings argues that government efforts to moderate growth by tightening mortgage rules and lending practices have had mixed results, noting that sales and building permits for residential construction have picked up in recent months. The standards are still too loose and if they weren’t we wouldn’t see the income to debt ratio or the $200 a month max left in the household budget. Defending the country and all that good stuff? In 2019, an IMFreport noted housing price increases in Toronto, Vancouver and At one point in time, I had to decide whether I want to migrate to USA or to Canada. And no one reaches for their heat. The assets on its balance sheet have now dropped from C$575 billion in March, to C$478 billion as of May 12: In the Greater Toronto Area (GTA), house prices spiked by 3.0% in April from March, and by 12.3% year-over-year, and have nearly tripled over the past 15 years, according to the Teranet-National Bank House Price Index today. This would happen multiple times with no party seeing the lot, which was often swamp. Had most all of my “nasty record” I described, but that was no problemo when doing that. “My hunch is that Canada has money laundering laws on par with the worst third world countries and that’s where most of the money comes from. Salary in Toronto is much lower than that that in US east coast, nevertheless Calif. Bank of Canada is definitely the largest money laundering operation in Canada, and arguably the most responsible for the excessive leverage and price appreciation in real estate. The condo also comes with free medical care if you don’t work, and maybe even an on the dole subsidy. Nothing like making a definitive comment on a ‘hunch’ :-). And be happy they are not all flooding into Canada (because if things in the USA continue to get worse, they will start to). Fine country, no doubt but LOL if you think it’s so very different than the US culturally or economically. You could replace Central and South America with Ireland and post that on Wolf’s retro 1850’s blog, The Wolfstreet Gazette. In Halifax, hang on to your seat, house prices spiked 5.4% in April from March, by 26.8% year-over-year, and by 40% in two years: In Quebec City, house prices rose 1.2% in April and 9.1% year-over-year. Income has stopped explaining the price across the world a decade ago. The index has more than tripled in 15 years: In Hamilton, Ontario, house prices spiked by 2.8% for the month and by a blistering 22.9% year-over-year. This Utuber’s housing story is itself interesting. Now all of his neighbors are Vancouver refugees. Will they ever learn? There are not many such opportunities in life. If you pass laws against it, they will buy property through corporations that shield their identity. Housing Bubble 2 In my hunting days I no doubt did more than most NRA types. In practice, since the Crown does not interfere with political decisions (except in highly limited circumstances), the Prime Minister of Canada can do what he likes with it. Between the rising debt and the bubble, there is a significant risk of a housing market crash. In typical fashion, central banks are attempting to hide the truth via unclear language that is being misinterpreted by Average Joe. Inflation & Devaluation The underlying cause is a currency crisis because QE has brought more concerns about fiat and protection from deflation. I would argue in favour of our housing bubble being the *most* ridiculous though. I said yes, and then she said, well what about?….. (even a conviction-less felony assault arrest) until we hit minor in possession of alcohol at age 18….they have EVERYTHING on ya). In Oct 1980 I came up to Toronto for about 3 weeks to consult on a CO2 Laser. There are very few restrictions on people buying real estate in Japan either by Japanese or foreigners. I am also Canadian (merde! In short, we have our problems, we are just a lesser dirty shirt in the hamper. Oh well, several of them come down here a lot, and we even took a 2 trips over halfway down Baja in 2-3 car caravans, to a home rented, then to one they were building in Bahia Asuncion. Nbay, what years were those convictions in? Have you been to Richmond or Vancouver? That return alone is worth overpaying for a condo. The most violent real estate mania in history was the Great Florida Land Boom and Bust of the 20’s. I HEAR LARGE CARDBOARD BOXES CAN BE SHELLACKED SUCH THAT THEY WILL REPEL WATER FOR YOUR TEMPORARY HOUSING UNTIL THE HOUSING BUBBLE TOTALLY DEFLATES. A lot of homes into contract coming back to market. And I didn’t even mentioned immigration and foreign students, many of them using studies as backdoor to get into Canada, and panicking to get on the property ladder. This is the reason behind the tremendous rise in prices. Of course the above will never happen because there is not enough of a political constituency for it. My hunch is that Canada has money laundering laws on par with the worst third world countries and that’s where most of the money comes from. “. Yeah Right, I bet you are really quite the “warrior for freedom”. Using ad blockers – I totally get why – but want to support the site? You might be Canadians, but like many of our countrymates you seem disconnected from the economic reality. It doesn’t matter, because who knows anyone? In Montreal it is near 1% of city assessment, in Halifax and Winnipeg 1.2%, and in Ottawa 1.1%. 1. It is now familiar, Oh, Canada Canada depends on real estate and immigration because it has given up on building an innovative economy driven by new businesses and productivity. Hamilton and Butler counties each had more than 400 permits, followed by Clermont County with 384 and Boone County with 376. Ok the housing increased 12% from when rates were 2% higher but if you are financing the bulk of the home price at the 2% lower interest rate your payments will be the same as when they were 2% higher. Now they’re all trying to get out at the same time. All working, all paying the monthly mortgage nut, all slowly building equity. I wouldn’t contribute FOMO to be the only reason for over-bidding. For the cost of a one bedroom condo, C$500K, you can get permanent residency in Canada. Outside the big three (or four) cities, Canadian RE is reasonable. We bought our first home East GTA 2011. Very few arrivals either now or past are of criminal element, in either country. And our wages are substantially lower than in Canada or the US. The unhealth may last for a long time given how low property tax is. PS: any group travelling to shop will be impatient.
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