Canada Real Estate Goes Back Into Boom Mode As Rates Stop Rising

[Economy 53,158]

https://betterdwelling.com/canadian-real-estate-prices-set-to-rip-higher-after-boc-signal-bmo/

 

The data appears to show that the correction in prices induced by higher interest rates as buyers waited on the side lines lasted less than a year leaving prices highly inflated

 

The latest reading show National Home prices in Canada rose for a 3rd month in a row.

 

The Central Bank of Canada left rates paused once they hit 4.5% to see how economy reacts and as soon as the pause came, realestate came roaring back in full force

 

Bank analysts also show that tight and falling inventories will not be good news for rents going forward or first time home buyers

[gumzy3000 7,995]

So interest rates have risen yet it did nothing to make housing more affordable? Honestly I need to get out of Canada, the government really doesn't care about young people and their hopes for home ownership. Especially in Toronto, if you aren't already owning property, you will be a slave to your landlords for life, paying insane rent forever. It's honestly disgusting how bad it has got.

[Economy 53,158]

2 hours ago, gumzy3000 said:

So interest rates have risen yet it did nothing to make housing more affordable? Honestly I need to get out of Canada, the government really doesn't care about young people and their hopes for home ownership. Especially in Toronto, if you aren't already owning property, you will be a slave to your landlords for life, paying insane rent forever. It's honestly disgusting how bad it has got.

It did make it a bit cheaper but the trend was short lived it seems 

 

Prices essentially were falling for less than 1 year. Not much different from the small blip in prices in 2009 when after the 2008 recession there was a short pause and reversal to the housing boom and then it just resumed in 2010...

[Monstermilo 5,473]

7 hours ago, gumzy3000 said:

So interest rates have risen yet it did nothing to make housing more affordable? Honestly I need to get out of Canada, the government really doesn't care about young people and their hopes for home ownership. Especially in Toronto, if you aren't already owning property, you will be a slave to your landlords for life, paying insane rent forever. It's honestly disgusting how bad it has got.

girl its like that everywhere 

in the US its pretty bad too 

oil is 10/gallon in some countries - the cost of living has skyrocketed in most developed countries 

we need to restructure our world to make it so we dont have to be slaves to our govts and currencies 

in 1950 in the us a house was 12,000 dollars (150,000ish if adjusted for inflation) now houses are 300-400k. 

tuition for colleges are also unreasonable................ 

[Economy 53,158]

6 hours ago, Monstermilo said:

girl its like that everywhere 

in the US its pretty bad too 

oil is 10/gallon in some countries - the cost of living has skyrocketed in most developed countries 

we need to restructure our world to make it so we dont have to be slaves to our govts and currencies 

in 1950 in the us a house was 12,000 dollars (150,000ish if adjusted for inflation) now houses are 300-400k. 

tuition for colleges are also unreasonable................ 

It's literally not even in the same scope. Canada has consistently been ranked as in the top 3 to top 5 most overvalued real estates in the world and our average home price ratios to income are considerably higher than in the US!

 

Canada also had a housing boom that started in the early 2000s but unlike the US we never had a major crash in 2008 to significantly reverse the price gains and then a few years to catch up... We had a minor blip in 2009 in prices then resumed growth

 

So we have essentially been in a 20+ year housing boom that has gone mostly uninterrupted

 

When I see US housing prices I have to laugh that ppl complain

 

I know just like Canada has Toronto and Vancouver... The US has their ultra expensive cities too like NYC, LA, San Francisco etc....

 

But the difference is the US also has many decent sized cities that are more affordable throughout the Country. In Canada the average home price is horrendous cuz there's no escape. Any city or suburb that has even a few hundred thousand ppl or anywhere near the Metro's is gonna strangle the money out of ur pockets for life

[Monstermilo 5,473]

6 hours ago, Economy said:

It's literally not even in the same scope. Canada has consistently been ranked as in the top 3 to top 5 most overvalued real estates in the world and our average home price ratios to income are considerably higher than in the US!

 

Canada also had a housing boom that started in the early 2000s but unlike the US we never had a major crash in 2008 to significantly reverse the price gains and then a few years to catch up... We had a minor blip in 2009 in prices then resumed growth

 

So we have essentially been in a 20+ year housing boom that has gone mostly uninterrupted

 

When I see US housing prices I have to laugh that ppl complain

 

I know just like Canada has Toronto and Vancouver... The US has their ultra expensive cities too like NYC, LA, San Francisco etc....

 

But the difference is the US also has many decent sized cities that are more affordable throughout the Country. In Canada the average home price is horrendous cuz there's no escape. Any city or suburb that has even a few hundred thousand ppl or anywhere near the Metro's is gonna strangle the money out of ur pockets for life

girl i live in cali where houses are 800k for a two bedroom and 1.5 for a 3 bedroom house what u talking about 

of course youre gonna see high prices in toronto but just like the US some parts are cheaper than others. 

[Economy 53,158]

6 hours ago, Monstermilo said:

girl i live in cali where houses are 800k for a two bedroom and 1.5 for a 3 bedroom house what u talking about 

of course youre gonna see high prices in toronto but just like the US some parts are cheaper than others. 

But that's my point. In the country as a whole the US is not as expensive as Canada that's what I was saying and we were talking about nations as a whole not just the most expensive markets 

 

I feel like u didn't even read my comment properly. I fully said I'm aware the US has specific expensive areas. 

 

Average home price in the US rn is $428,000 vs Canada $512,000 (I adjusted fire currency cuz in Canadian dollars it's $686,000)

 

That's a difference of some 20% despite the fact that incomes are marginally higher in the US cuz if u look at price to income multiples it's even worse than 20%

 

So there's real data there. Our housing market is more expensive than the US in general. In part because a higher percentage of our population also lives in the bigger Metros. We don't have as much housing stock or jobs available elsewhere in the first place.

 

We do not have entire populated states like Texas with fully functioning economies with much of it being generally more affordable. Most of the population does live in either Toronto, Vancouver, Montreal or Calagary-Edmonton corridor cuz that's where civilization was built and concentrated. There aren't many options to run away to and from here cuz the only areas that exist that are cheaper have no opportunity whatsoever and are in the middle of nowhere