Economy 52,842 Posted March 17, 2019 Share Posted March 17, 2019 https://www.google.ca/amp/s/business.financialpost.com/real-estate/canadian-housing-slump-deepens-with-first-drop-in-values-in-decades/amp For the first time in 3 decades Canada's nominal real-estate value has dropped. Last year total value was $5.13 Trillion while it has now fallen to $5.1 Trillion a $30 Billion decline After shorter amortizations, tougher downpayment rules, foreign buyers tax failed to make prices drop, the new 2% stress test may finally done the job as it locks more people out of the market as has reduced purchasing power of the average person by 20% The housing boom started in 2000 but price appreciation accelerated further after interest rates tanked in 2008 & 2009 Vacancies remain at record lows and home affordability is expected to be the #1 election issue later this year Link to post Share on other sites More sharing options...
ARTPOPSTER 4,246 Posted March 17, 2019 Share Posted March 17, 2019 Exactly what you and I were talking about before. Overvaluation, affordability and price appreciation. Things can't hold their value if there is no longer a demand. As you said, people have been pushed out of the market. Link to post Share on other sites More sharing options...
Economy 52,842 Posted March 17, 2019 Author Share Posted March 17, 2019 @OBEY at this rate of decline in 10 years I can buy my house Link to post Share on other sites More sharing options...
Economy 52,842 Posted March 17, 2019 Author Share Posted March 17, 2019 Just now, ARTPOPSTER said: Exactly what you and I were talking about before. Overvaluation and price appreciation. Yup. Since we were talking about this I searched it up some more and this just came out But Canada's real estate issues go beyond just low rates. That may have compounded the issue but prices were already rising before interest rates went so low Canada has serious regulatory red tape in construction and very slow approval processes. It can take over 10 years for a project in Toronto to be approved for example by the time it goes thru all 52 approval stages Despite insane prices... Construction in Toronto for example remains 20% below population growth needs. Toronto grows by 100,000 people a year and they estimate 2 people per housing unit (families tend to move to suburbs while single people move in hence the low number per condo) which requires 50,000 units of new supply per year but only 40,000 a year average in construction Vancouver has simmilar issues and these 2 cities account for the bulk of population growth and the largest chunk of real-estate Vacancies are extremely tight at record low Link to post Share on other sites More sharing options...
darkchylde 14,857 Posted March 17, 2019 Share Posted March 17, 2019 dystopic as **** that these are meant to be good news Link to post Share on other sites More sharing options...
Teal Ambition 47,805 Posted March 17, 2019 Share Posted March 17, 2019 The housing market has been so competitive, its insane. I was in a bidding war to buy my house last year and it was not fun ▌│█║▌║▌║ before I am Canadian, I am Chromatican ║▌║▌║█│▌ Link to post Share on other sites More sharing options...
Economy 52,842 Posted March 17, 2019 Author Share Posted March 17, 2019 Just now, Teal Ambition said: The housing market has been so competitive, its insane. I was in a bidding war to buy my house last year and it was not fun I would buy one but I don't qualify Link to post Share on other sites More sharing options...
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