Canada Home Prices Fall 12% In 5 Months, Fastest Drop In History

[Economy 52,906]

https://www.bnnbloomberg.ca/canadian-home-prices-post-record-monthly-decline-in-september-housing-index-1.1835420

 

 

Canada's home prices Fell 3.1% in September posting a new record for biggest drop in a month beating the record it set just a month earlier in August

 

Since prices began falling just half a year ago, National home prices are already down some 12% Amid rising interest rates. In some hot markets like Toronto suburbs the drops are almost 20%

[Economy 52,906]

I hope this doesn't slow down home construction too much

 

[Dojo 19,823]

finally all our canadians sistrens can move from their parents basement

 

[Economy 52,906]

3 minutes ago, Dojo said:

finally all our canadians sistrens can move from their parents basement

 

Home affordability for the moment is still declining cuz the drop in prices do not fully offset the increase in interest rates, so a mortgage payment rn would actually be higher

 

Some experts also say short term this may cause rents to go even higher as rising rates lock more people out of the market and keep renters on rental market longer...

 

Yay to be Canadian 

[Dojo 19,823]

11 minutes ago, Economy said:

Home affordability for the moment is still declining cuz the drop in prices do not fully offset the increase in interest rates, so a mortgage payment rn would actually be higher

 

Some experts also say short term this may cause rents to go even higher as rising rates lock more people out of the market and keep renters on rental market longer...

 

Yay to be Canadian 

 

i apologize, i didn't mean to come across as insensitive.

i legit thought things were looking better, i blame my ignorance.

[Economy 52,906]

On 10/23/2022 at 4:09 PM, Dojo said:

 

i apologize, i didn't mean to come across as insensitive.

i legit thought things were looking better, i blame my ignorance.

Lol dw this wasn't one of those condescending "get educated you ignorant twat" kinda comments, I find agressive comments like that so pointless and stupid

 

I just meant affordability is still deteriorating and 30 year olds are still stuck in parents basements indeed

[OMF 3,673]

Sad thing is even with the drop the houses are probably still too expensive for most people. Same thing here in Sydney and rest of the country too.

[Economy 52,906]

12 minutes ago, Aussie said:

Sad thing is even with the drop the houses are probably still too expensive for most people. Same thing here in Sydney and rest of the country too.

Canada has a chronic housing shortage. Prices are dropping after surging more than usual during pandemic because interest rates are rising...

 

Canada currently has the highest interest rates in the developed world and unlike some Countries that got rid of or relaxed stress tests now that rates are higher (like the UK), Canada hasn't sto ppl now have to qualify for mortgages at like a 7.5% rate so of course prices have to fall

 

But given the severe housing shortage, this isn't a USA 2007 and 2008 housing crash reset kind of situation. Prices will remain severely unaffordable despite falling off all time highs. 

 

The drop in prices also do not offset the rise in interest rates. It's become even more expensive to buy a house now!

 

Edit: yeah I heard Australia is pretty terrible also