Canada Housing Crisis Worsens As Regulation Fails To Stop Surging Prices

[Economy 52,844]

https://www.bnnbloomberg.ca/toronto-housing-market-posts-biggest-price-gain-in-21-months-1.1325875

 

After attempts to cool the housing market with shorter allowed amortizations (25 years max), tougher down payment rules as well as forein buyers and speculators tax failed to stop home prices and rents from surging...

 

it looked like the stress test introduced Jan 1st 2018 that forces you to qualify for interest rates 2% higher than you actually got finally got prices falling... unfortunately that effect seems to have only lasted 1 year

 

Home prices have resumed and upward trend rising 5.2% Nationally over last year and 5.8% in Toronto taking prices back near their 2017 peak before the stress test begun and rents never dropped at all and continue to surgeq

 

Vancouver which saw the biggest innitial slowdown after the stress test has rebounded with sales volumes up 46% the last year alone

[Whispering 18,865]

Supply and Demand

[RemovedPerRequest1 124]

Come to Saskatchewan if you’re worried about the ‘crisis’

[Fatigay 21,211]

24 minutes ago, JSwystun said:

Come to Saskatchewan if you’re worried about the ‘crisis’

Saskatchewaaaaan, I'd rather diiiiiie

[Economy 52,844]

1 hour ago, JSwystun said:

Come to Saskatchewan if you’re worried about the ‘crisis’

Are prices really that high there? I cant see any city there having the exorbant prices of Vancouver or Toronto

 

[Economy 52,844]

2 hours ago, Whispering said:

Supply and Demand

Unfortunately and thats why each attempt at adding regulation to make lending more conservative and regulated only seems to dampen demand for a limited time and then market resumes upward trend

 

Unlike the US Housing bubble, this isnt speculation fueled or a result of bad lending. Theres just too few vacancies and construction has failed to keep up with population growth

 

So Far the changes they made include:

 

- Lowering max amortizations from 35 years to 30 years

- Lowering it again to 25 years

- tougher downpayment rules 

- limited number of mortgages with less than 20% downpayment can be approved

- Forein buyers tax in major cities to reduce speculative buying

- Now the 2% interest rate premium stress test

 

I think with so many attempts at cooling the market its time they acknowledge this isnt some bubble in the making. Regulation isnt working cuz the fundamental issue at play is not enough supply for demand as you say

 

thats what needs to be fixed. For starters, less complicated and restrictive zoning laws would help. Construction companies complain Canada has one of the longest and slowest approval processes for anything that involves construction 

 

Aparently a new condo building in Toronto from application process to construction can take over 10 years

[RemovedPerRequest1 124]

50 minutes ago, thierryrreiht said:

Saskatchewaaaaan, I'd rather diiiiiie

Lol. Well I’m not complaining, and I’m the one actually living here. So there’s that. 

 

4 minutes ago, Economy said:

Are prices really that high there? I cant see any city there having the exorbant prices of Vancouver or Toronto

 

Prices aren’t as high, but there are a ton of houses on the market. Supply for house’s is in demand currently causing people to take massive cuts on the prices for their homes if they do want to sell. 

We go on more vacations here because there is less to do. The cost of living is still much lower than  Alberta, BC and Ontario. So until you’ve actually lived here, joke’s on you.

[Economy 52,844]

18 minutes ago, JSwystun said:

Lol. Well I’m not complaining, and I’m the one actually living here. So there’s that. 

 

Prices aren’t as high, but there are a ton of houses on the market. Supply for house’s is in demand currently causing people to take massive cuts on the prices for their homes if they do want to sell. 

We go on more vacations here because there is less to do. The cost of living is still much lower than  Alberta, BC and Ontario. So until you’ve actually lived here, joke’s on you.

Yeah. I know ever since the pipeline and oil crisis home prices did fall in Saskatchewan and Alberta. You can blame British Columbia for that one

 

the rest of Canada tho

[Whispering 18,865]

2 hours ago, Economy said:

Unfortunately and thats why each attempt at adding regulation to make lending more conservative and regulated only seems to dampen demand for a limited time and then market resumes upward trend

 

Unlike the US Housing bubble, this isnt speculation fueled or a result of bad lending. Theres just too few vacancies and construction has failed to keep up with population growth

The big cities in the US experiencing a housing crises are due to lack of affordable housing for those who work there. 

Here are 10 statistics that outline the U.S. housing crisis:

-24.7%: U.S. renters who spend more than half their income on rent.

-49.5%: Those who spend more than the federal threshold of “affordable” (30% of income).

-7,000,000: Nationwide shortage of affordable homes for low-income renters. 

-552,830: People experiencing homelessness on a single night in 2018.

-7,400,000: Americans forced to move in with friends or family.

-32%: Increase in median rent from 2001 to 2015.

-97%: Increase in the number of homes renting for $2,000 or more between 2005 and 2015.

-80%: U.S. markets where home prices are growing faster than wages.

-1%: U.S. counties where a fair-market one-bedroom rental home is affordable for a full-time minimum-wage worker.

-103: Weekly hours worked at minimum wage needed to afford a one-bedroom home at national average fair-market rent.

[Economy 52,844]

1 hour ago, Whispering said:

The big cities in the US experiencing a housing crises are due to lack of affordable housing for those who work there. 

Here are 10 statistics that outline the U.S. housing crisis:

-24.7%: U.S. renters who spend more than half their income on rent.

-49.5%: Those who spend more than the federal threshold of “affordable” (30% of income).

-7,000,000: Nationwide shortage of affordable homes for low-income renters. 

-552,830: People experiencing homelessness on a single night in 2018.

-7,400,000: Americans forced to move in with friends or family.

-32%: Increase in median rent from 2001 to 2015.

-97%: Increase in the number of homes renting for $2,000 or more between 2005 and 2015.

-80%: U.S. markets where home prices are growing faster than wages.

-1%: U.S. counties where a fair-market one-bedroom rental home is affordable for a full-time minimum-wage worker.

-103: Weekly hours worked at minimum wage needed to afford a one-bedroom home at national average fair-market rent.

I dont remember all the statistics off the top of my head but ive seen them...

 

someone of the ones u mentioned are even worse here. Like the percentage of income going into rents. And our rents increased way more than 32% over that 14 year period. Also our homeless rate is now higher than the US rate

 

Also just a comparison, home prices in US peaked at 7X incomes before the crash and here it is now 9X. USA consumer debt peaked at 134% of annual income in 2007 before the crash... here it is 178% now

 

also heres a related story u might find interesting:

 

 

Im not exaggerating. Its bad, young people like me are penny pinching for rent. Recently my wife and I were forced to move back in with my parents 

 

[RemovedPerRequest1 124]

6 hours ago, thierryrreiht said:

Saskatchewaaaaan, I'd rather diiiiiie

Where are you from? Somewhere special?

[Fatigay 21,211]

3 hours ago, JSwystun said:

Where are you from? Somewhere special?

Montreal

where you don’t need to travel to have things to do

[StarstruckIllusion 53,564]

**** sake... I wanna move out within the next 5 years. This **** depressingggg

[RemovedPerRequest1 124]

3 hours ago, thierryrreiht said:

Montreal

where you don’t need to travel to have things to do

People like you are the reason I'm going to delete this account. You're a  bitch just for the sake of it.

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Don’t fight you guys!