Canada is sitting in one of the largest housing bubbles of all times Strategist
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- Опубліковано 8 чер 2024
- Phillip Colmar, managing partner and global strategist at MRB Partners, joins BNN Bloomberg for his view on the Canadian market and economy. Colmar warns on Canada's housing bubble and adds Canada is a weak link to the global economy. He is also cautious on the TSX.
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The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
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Very well put. I like how the news quickly shifted its stance of "I won't call it a bubble or a crisis" from just a year ago to "Yup, we're in a bubble".
Haha so true!! Soft landing 😅
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It's (and the stock market) definitely not a bubble until it busts.
No, a bubble occurs when supply is available... here... there is no supply and will not have any supply for the next 10 years.
Buying a house that use to cost 150k at 3% interest just before march 2020 in Texas to now costing 250k at 7% interest is not the best financial decision LOTS of people are taking. This will bust horribly...
Back in 2000 I got a job offer and we moved from Canada to the US, so, we've seen both sides of the mortgage equation. Based on our experience, we definitely prefer the US. I recall the dreadful negotiation phase every so often in Canada. Here, I was able to lock in a 15-year mortgage term and didn't worry about rates during that timeframe. If the rates go down, then you can re-negotiate at a lower rate, pay off the debt and move on with a new mortgage.
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I feel like he didn't want to scare people, but that strategic expert (Philip) is terrified for Canadian housing.
Sad Canada used to be one of the best countries and a good example of responsible government
It’s not just Canada. The G7 kept interest rates insanely low to prop up GTP for the last 20 years now the it’s biting everyone in the ass.
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Yep. I completely agree. Canada is sitting in a huge housing bubble. Housing cost has doubled in the last 7 years while GDP per capita remains stagnant. Most people don't realize that Canada is already a high tax country which works relatively well when everyone plays by the rule. However, when you couple high taxation with high cost of shelter, you simply get the result of a hurricane marrying a typhoon to decimate the financial well-being of Canadians. Average household income in Canada is less than $100k on the high side of the salary spectrum. Most Canadians' annual household income is much lower than that. And the truth is: the average take home pay is 30 percent less than actual pay. Take home pay is what you use to carry out all the expenses you can imagine. Go figure folks!
It's been in a bubble for 10 years. Pinpointing if and when it bursts is the hard part.
The only difference is that gov is pumping 1M immigrants annually into economy with 70000 trades heading to retirement (without replacement).
Not to count record numbers of millenials forming households, inflated material prices, lack of public housing and skyrocketing rents.
Anyone trying to control Canadian RE market should start with the answer to WHO IS GOING TO BUILD to match this demand?
- Gov? ....Nope - they didn't built anything for last 2 decades
- Developers? ...maybe but not cheap as trades are hard to find and materials are pricey
- Existing housing supply will drop prices? .....not with this demand / even at higher mortgage rates
@@kqh123 yep. The bubble would have popped already had the banks stopped bailing out those who over leveraged with high mortgage loan including allowing negative amortization. There is so much relief they can handle before the whole house of card come crumbling down. It will happen slowly but surely.
Swiss house prices at usa wages love it
@@nephilimshammer9567 The economy will take care of it I suppose. What need to happen is for both the the Canadian banks and government to stop the bailing out of those struggling with mortgage payments. If you cant pay your mortgage, you sell or default, then when default start to mount, price decline will follow. Some people will go under water, but that's part of the economy. People need to realize when taking huge mortgage loan, they also sign up for the risk associated with those loans. The slogan should be: stop the bailing out! Let the bubble pop!
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It’s been said that Canada is in a housing bubble for the last 20 years, yet it never bursts. Canadians keep getting further and further in debt and there is never a toppling. Canadians now the most indebted country. Yet it continues. Wouldn’t be surprised if this guy too is in debt and has a huge mortgage just like most Canadians.
Party on!
Except you never had 1mil mortgage with an interest rate of 6-7% fixed. So a 500k mortgage at an interest rate of 2-3% would make it so you double your mortgage amount at 6-7%. The housing crash is going to happen by end of 2025, when all mortgage renews
@@jeffreyl2598 Ok, then let’s see if it actually happens this time. The much ballyhooed long predicted housing crash and housing bubble and unsustainable debt levels so far has not amounted to anything as the debt party continues full speed ahead. We will know a housing crash when and if we ever see it, but so far nothing.
One factor against a housing crisis is the fact there aren’t enough homes for Canadians to live in right now, there is a massive housing shortage! So where will all these housing crash victims go? Live in tent cities?
What a mess.
@@Martin-qm2lg there is enough homes. If you ban Airbnb and 30% of all real estate is investors or Canadians with multiple properties. Well government will bail out the CHMC insured mortgages because it's backed by the government. However, the 30% of mortgages that paid 20% down payment(do not need CHMC mortgage insurance) will impact the banks(loan loss provision), it may or may not trigger foreclosures but banks don't want the overpriced homes. It's hard to say when we're in the biggest housing crisis ever, even worst than the 2008 Lehman brother crisis.
@@jeffreyl2598 there is nothing but dithering in Canada on housing. Nothing ever changes. Too much selfish interest among those benefiting for the status quo to seriously change. Any solutions will require big change and Canadians don’t like big change when it comes to housing. Don’t expect the situation to ever improve meaningfully, unless there is indeed a serious crash and meltdown.
thats if they dont drop the rates@@jeffreyl2598
If this guy is telling truth, I would like to see it happen tough. I’ve only heard this for like that past 30 years
Well if printing money caused inflation then I would tell you that the bond yields are about to skyrocket, especially if they actually try to QE and lower the fed funds rate. A 1,000,000 house with Paul Volcker interest rates should be the kind of "happening" you're looking for. Good thing printing money doesn't cause inflation though, right??
Its time to pop the housing bubble. Its a circle of real estate. This is not normal for house to get so expensive .give chance for new generation to buy home so they can start family.
Well said. I believe homes should not be an asset class !
Supposedly USA was in the bubble in 2007 and it took 3.5 years for prices to fully recover. Do you call that a bubble ?
China has the right idea, word has it that they're intentionally deflating their real estate bubble (by letting Evergrande implode in a controlled fashion etc) because the government doesn't want homes to be a speculative commodity anymore. Of course we fear monger over this but secretly, I wish governments in countries like Canada had the gonads to do the same thing.
@@EnnuinerDog you secretly want communism too I believe
In Canada , one of the main industries is Housing market . It's so beneficial for banks and government .Then it'll be like that for ever. so .... @@kentA205
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One of the foundations of a competitive productive economy is 1 million dollar homes.
great warren buffet quote.
@@roseoverdose6451 My favourite is when he recently said if government debt exceeds 3% of GDP, the politicians involved should not be eligible for re-election.
You’re joking? Median home price is supposed to be tied to median income because as we all know, jobs drive home prices. Unless you pay cash, you need a job to get a mortgage
@@thefutureisnow8159investment income (corporate,foreign,domestic) drives home prices, inflation drives home prices, engineered shortage due to Government sponsored excess immigration at a million a year including students, artificial shortage due to not enough building permits, high building costs etc. Jobs? Not really, if it was jobs houses would still be $400,000.
@@4freess the majority of homes purchased in the US have a mortgage on them. I’m assuming the same in Canada. Mortgages are loans against your income- income can come from investments but for the majority, especially the 25-45 age groups, it’s coming from a job- you either work for someone or you own a business and pay yourself a salary. This not my statement/opinion that jobs drive the real estate market. Look it up. This is well known in my field(real estate). When a major employer in a town like Wichita Kansas up and leaves(that was Boeing if I’m recalling correctly), then a bunch of people lose their jobs. Then they’re forced to put their homes on the market, all at once- prices go down. Once they sell they don’t qualify for another mortgage unless they’ve secured a new job.
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Canadian residential real estate has been ridiculously overpriced for years. Houses that in many parts of the US would cost 800K, and in the greater Toronto area are 3 million. Many other statistics showing that the average Canadian only makes 66% of what an average American makes. Probably because of the huge influx of all cash Asian buyers over the years who skewed our markets and made them unaffordable.
America has A massive housing bubble currently too. Hopefully the Chinese bubble popping wipes out both the American and Canadian bubbles
Given our immigration policy of bringing in 500,000 - 1,000,000 people/year, we will have a structural shortage of housing stock. If there is a near permanent shortage, a house will retain and increase in value more than any other asset. We may become the most expensive place on the planet if our government only prioritizes immigration. Maybe speak with your MP why this situation exists.
@@renaissanceman9899 Too funny ! "Maybe speak with your MP why this exists". You do realize that our blackface PM has a mandate from George Soros and the WEF to destroy our country by immigration. He did it in Europe and he is doing it in the U.S. and Canada. This is well publicized. Just about every politician has been bought off to allow this. Anyone that disagrees, is quickly silenced or bought off to look the other way. This is after all the best way to keep the Liberals in power. Just import your new voters, they will quickly overpower any traditional Canadian voter base.
@@renaissanceman9899I doubt house prices will decrease, not significantly to "Crash" the system. it's a worldwide population problem, too many people, not enough places to live. lack of workers and tradespeople because tech jobs were promoted for years as the superiors job creating a shortage. building these homes take materials that have drastically increased in price now. Basically a confluence of poor land use policy + Immigration + temporary students + investors and in some cases migrants/ refugees overloading the housing of most developed countries. It's a free market where demand sets price and there is a LOT of demand that is not going away.
Same with the US, affordable housing is short supply due to the influx of undoc'ed immigration. Don't expect the prices of homes to come down in the foreseeable future.
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2007-08 was the last Housing Bubble/mortgage crisis. Now 15-16 years later we’re in a second housing bubble.
Make no mistake, Canadian real estate markets in a bubble. If there were no all cash foreign buyers what would our prices actually be? I’m guessing much lower
Investing in alternative income streams that are independent of the government should be the top priority for everyone right now. especially given the global economic crisis we are currently experiencing. Real estate, and virtual currencies are still attractive investments at the moment...
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Our mountain community has just built a few model-T garage units with small rooms and they sell fast for 700 grand Cdn. For cash.
We didn’t hit that because Investors are buying Land in Cash so when BlackRock and other big investors come in and pay cash for newly build subdivisions and sometimes even an entire block after the builders have made it. This keeps the economy looking better than it is as we have assets being paid in cash it also keeps demand insane and housing bubble high as now your paying a investor or building Corp not a bank. This also paints the road for less houses in the market as they will likely stay rental units for life. 33% of all homes sold last year where investors and private business.
They need to be stupid as there’s no cap rate 😂
I think a lot of it comes down to the government’s failure to invest in future growth after the 2008 crash.
Countries like Australia and Iceland took the opportunity to build up infrastructure for the industries with high growth potential. We, on the other hand, cut spending under Harper then wasted billions under Trudeau.
We haven’t built up any sort of base for industrial growth going forward. As such, there is nowhere for investors to grow their money outside of the real estate market, hence they flock there as the only safe source of revenue in the Canadian market.
Yep. Almost the ENTIRETY of our GDP here in Canada, is our fucking housing. Same in China.
I thought it was a given that foreign investing drove up the prices. Government should have stepped in and stopped it. Not our Government though.
I'll just live with the trailer park boys lol. Love that show. Thanks Canada!
when they filmed season 1, (they only filmed season 1 at this park) I was living there, and watched some of the filming , I met them all, Julian's Original Season 1Trailer is long gone, this was at the Woodbine Mobile Home Park in Lower Sackville, Nova Scotia, edit, they filmed season 2 at another park called, Bethel Eve Tufts Cove then other parks till they created their own fake park for seasons 5-7
That's the way she goes...
Cyrus isn't even from the Park.
He just thinks it's cool to live in a trailer park! 🤪
wow BNN please bring Philip on your show more.
This guy gets it.
No he doesn't because he thinks we're not even in a recession when we're already in a Greater Depression.
@@markhirstwood4190Thanks Doug casey
Congratulations on building homes in Canada 🇨🇦
4:50: Trouble is, Australia had impossibly high housing prices in 2017. Yet it lifted 50% or more since then.
This bubble could just keep going and going, just like the situation in Australia.
I still wonder how this “housing bubble” is going to pop when you have housing demand at all time highs in large Canadian cities.
Its like Dr Frankenstein. Government created this housing market mess through cheap rates and they don’t know how to fix it now.
I highly doubt the bubble will pop
It’s predicated on unsustainable immigration levels and low lending standards.
Demand for housing is infinite, it has no bounds. I demand a NYC penthouse, plus two Malibu beach houses (one to tear down for garage for my Ferraris) plus a seafront palace in Monaco. However my actual ability to borrow or use my savings to pay the asking prices for these properties is sadly very much finite.
He said the US is a lot less interest rate-sensitive economy. Can anyone let me know why?
Is it because they have a bigger portion of investments in business rather than real estate compared to Canada? And what role do production and exports play in this statement?
30 year mortgages (*terms*, not just the amortization) are the norm. I'd attribute quite a bit of it to that. Unfortunately a lot of US homeowners now cannot move without sacrificing the great deal they got 2 years ago. This has caused inventory to drop significantly. A proper traditional recession with huge job losses is probably the only thing that will change this.
Can someone explain to me how the bubble will burst when rental vacancy is also extremely low and rents are high. People will default, and need a place to rent. Other people will just buy those houses and rent them out. So onwership will just consolidate with more wealthy people. What do you think?
Thats why there has never been a house crash anywhere in history at anytime right ?
Don't monitor the weather. Watch the climate.
The bigger they are, the harder they fall. Call it schadenfreude, but lots of people, especially younger folks, in Canada are rooting for a crash.
They have been rooting for a crash since 2014. Those younger folks are 10-years older. Then now they are no longer young. Reality can be a bitch.
@@wbangcaTech the era of free money is over, for now. Canada, and especially GTA, represents the biggest housing bubble in the world and possibly one of the biggest in history - given stagflation and the affordability crisis. Metaphorically, the emperor is naked and everyone knows it.
@@mahtabsoin7239What about LA or San Francisco?, I think their housing bubble is bigger than Toronto's
@@danielr3661 no Daniel, it's not. Toronto's housing problem is worse because wages are so much lower and have stayed lower in Toronto. For the same size of house, folks in Toronto have taken on higher mortgages with higher rates. Folks in the US are lucky to lock in lower interest rates for longer too. Lastly, it's not just home. EVERYTHING is ridiculously inflated - insurance, groceries taxes. Americans pay for health insurance and sometimes private schools, but their wages are just so much higher.
@@mahtabsoin7239 The housing situations in the US v Canada are different. IN Canada principal residence housing is tax free. Then it becomes a commodity that you flip for gain. But be aware of CRA rules. And you are right about the wage differential.
Vancouverite here making $100k per year ans debt free but due to inflation i cannot see myself owning a home. Cannot wait for bubble to pop!.
Pretty sad what has been allowed if not promoted to happen. Feel so sorry for the kids
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An engineered one.
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Right now, things appear odd. The US dollar is becoming less valuable due to inflation, but it is becoming more valuable when compared to other currencies and commodities such as gold and real estate. People are flocking to the dollar because they believe it is more secure. I'm concerned that rising inflation may cause my $420,000 in retirement savings to devalue. We don't have any other places to deposit our money.
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Not a financial advice by any means, however, a safe way to invest at this time is to take advantage of high return on GICs if you are in Canada or CDs if you are in the US which are available in all major banks. They provide safe return with relatively no risk. Playing with the stock market in this challenging time is not something I would do. GIC and CDs used to be very unattractive during the low rate era, but now they are much more attractive with mid 5 percent or even higher in annual return.
Why doesn't someone stop the long, dragged out and costly process of getting building permits?
The only bubble is 30% government take in taxes and levies in each home. Developers,builders and materials aren’t free. So either government gives up a little of that greed or income needs to go up.
Income needs to increase.
@@isaiahsmith8523Rents just need to fall significantly. A rise in wages is inflationary, although some sectors do need a raise. Companies need to also shrink margins to stop appeasing shadowy shareholders at the expense of average citizens. 27% of TDs revenue is Overdraft Fees… in Canada we’re in the business of coning Canadians.
Was carbon taxes excluded to fit thar wages narrative?
Those things were all there 5, 10, 15 years ago. So no, that’s not it. The actual causes have been extensively reported on.
@@CaddieSmooth thanks for responding. We have both seen the cost of shelter mover further and further out of reach while companies expanded over the last few decades. We must have some class solidarity. Employers are not seeking to give their employees more unless they are forced. Wages will have to move closer to the cost of shelter and food. We're talking about Wages moving closer to the prices of food and shelter, not luxury items. Grocers, realtors, and banks are making record profits. Legislation must be put in place that limits consumer exploration while wages increase.
Impressive interview
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The stock market rally run is gone, but I'm not
sure if equities will swiftly recover, keep falling, or fluctuate in a narrow range for a few weeks, or if things will quickly get worse. I'm under pressure to increase my $300k reserve.
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So what will happen to the Canadian housing market?
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This bubble needs to pop. It has been long time coming
how do you pop anything when 70000 trades are going into retirement without replacement?
Who is going to build houses? TikTok Influencers or Mickey Mouse 🤡
@@misuszatek3380at if newer technology was implemented to speed up building , like 3d printing tech for 1-2 story houses or even prefab houses
@@imasazn ....IF ...but you know this won't happen anytime soon.
This man is smart 👌
Right up there with Australia!
Can we be sitting in a housing bubble with the chronic housing shortage we have in this country?
Its not just housing. Consumer debt is at record highs as well. Asset seizures are up as well. The real economy has never recovered from 2008.
This is what happens when people who can't afford to buy houses, buys them, then rents them out in order to afford them, (and everyone does it), to the point where now people can't afford the rent to help landlords pay off their retirement homes. This is what happens when your citizens stop being productive and try make a quick buck on basically a ponzi-scheme of flipping houses in Canada. It'll destroy the middle-class cause they'll go bankrupt for defaulting on their mortgages, as it's currently fucking over poor people cause they already can't afford the current rent (living pay cheque to pay cheque, which landlords use to help pay off their mortgage).
Coming from someone who inherited their house from his grandfather when the house was only worth $80k CAD, now it's worth over $900k, the prices are insane. Like how can anyone afford that, especially considering most people only make $50k/year.
This shit is gonna bust so hard in the coming years, it's going to be spectacular.
The situation is quite tough for Canadians due to the substantial influx of foreign investment, facilitated by the relatively lenient visa acquisition process. Average incomes in Canada pale in comparison to those in the United States. Nevertheless, a market crash might not be easily triggered, given that a large portion of foreign investors made all-cash purchases and aren't under pressure to sell their properties.
How about domestic investment?
No more foreign buyer until 2025! Most immigrants come in Canada with little money, young highly educated not many millionaires !! Not everyone is rich!! Over 500k international students ( future immigrants) can’t find affordable rental ! These are the immigrants!!!
With a son currently most-way through a degree in Vancouver, I can assure you from personal-experience, that it is NOT at-all easy to get/maintain the visa ! The opposite, in fact, at least as regards study-visas !
That’s spot on- the problem is we let too many rich Hong Kong nationals in- my freshman year at university of Toronto as two thirds Asian. I don’t believe the founding fathers of Canada nor the US intended for either country to become a Chinese dominated country. That’s where we are headed. The communist party of China has some
Long term strategic plans to become the leading world super power and one of those plans is to control businesses, resources/ commodities, food production, major fresh water sources in both our countries. This has been discussed in many respectable circles- go read Foreign Affairs- Putin isn’t the real threat- China is. And letting the Chinese buy our residential real estate en masse is like allowed them to take over our cities, peacefully, using visas and home purchases. They have a whole other agenda.
@@thefutureisnow8159UofT has 40% international students who pay 50-70k a semester while Canadian nationals pay 0 (if you are OSAP funded) to 4000 per sem. You can’t have free college, free medical expenses, pension payments for the elderly, declining worker to retiree ratio, declining birth ratio and not emigrate people in. The issue is the average Canadian wants all their bills paid for, wants single family homes in a neighbour hood that has strict zoning laws in the GTA area, 2 cars at low interest rates, a six figure job, stay at home spouse and an early retirement! This is not utopia. You guys live in fantasy!
I like this guy! He's honest and intelligent!
obviously this is his moms account.
@@roseoverdose6451 lol! You're Hilarious! I find it refreshing that he is being objective and saying what we need to hear. I love your comment though. Your friends and family probably love being around someone so funny and witty.
It would work to my advantage for him to be right, but if he has the full picture on what's driving real estate in Metro Vancouver, he didn't describe it.
The rates started going up after February 24, 2022, the day Russia invaded Ukraine.
Before that day, the Bank of Canada stubbornly denied the Inflation and ignored the rate hikes despite rising inflation and the high cost of living.
The Russia/ Ukraine conflict triggered runaway inflation and rate hikes around the world so we can say that Russia and China are controlling (hijacking) the global inflation and interest rates around the world and no longer by the Western Central Banks.
It is easy to predict and analyze that as long as that conflict is going on, the rates will not come down and as we know for a fact, NATO is for the long haul in conflict with Russia and China.
Even the day war ends in Ukraine, rates may stop to go up but for sure won't go down either.
Factors such as;
- Ongoing Russia/ Ukraine Crisis (LONG LASTING and COSTLY WAR)
- Rising Global Geopolitical Tensions (China, North Korea, Russia with NATO)
- Global Food Crisis
- Global Inflation Crisis
- Global Sovereign Debt Default Crisis
- Global Energy Crisis
- Global Supply Chain Crisis
- Rising risks of De-dollarization of the Global Economy (BRICS with its 6 new member states)
- Canada's $1.2 trillion National Debt
- Canada's $2.32 trillion Household Debt (RECORD LEVEL)
- Canada's Cost of Living Crisis
- Canada's Housing Crisis (2nd Biggest Housing Bubble in the World)
- Canada's Affordability Crisis
- Canada's Income /Debt ratio of 187.5% (RECORD LEVEL and a TIME BOMB)
- Constant decline in the standard of living
- Rising Protests, Riots, Labour Strikes, Family breaks ups, Excedous within country and provinces, Crimes, Violent Crimes, Mass Shootings, Spraling Tent Cities, Homelessness
All are signs of trouble ahead for Canada for years if not for a generation.
Inflation is here to stay for years if not for decades and so as elevated interest rates.
The interest rates will continue to rise throughout 2024, 2025 & 2026, and possibly beyond with NO CUTS in the foreseeable future.
The Housing Bubble in Canada is about to burst so as the household debt bubble.
Remember the facts, Canada's Real Estate Golden Years have been all behind us and will never come back again at least for our generation.
A New Cold War era with Russia, China, and North Korea has already begun as has the rise in Defence Spending, HIGHER DEFICITS, and HIGHER TAXES.
50% to 75% deflation (CRASH) in Home Prices is a MUST
The "Ongoing Home & Cost-of-Living Crisis in Canada are DIRECT THREAT to Canada's National Security, Safety, Stability, and Sovereignty. if these current crises are not addressed and resolved fully in the near future, there will be a MASS INFLUX of Young Canadians (Millenials) in the US and other parts of the world.
Home is a"Life Necessity" and NOT an "Investment Commodity" and the coming crash of real estate in Canada will settle this harsh reality, once and for all.
Welcome to New Reality and the New World Order!
Canada has sub-prime mechanics in place. There's no such thing as 30yr fixed here. 2/28 arm mortgages were when those 2 years were up and rates went up 4%. Canada hasn't had real rates for a long time and banks are already expanding amortizations to cook the books. RE Sector and Construction are 2x the size in terms of GDP vs the states at the time of the 08 crisis. US is diversified, Canada is not. Our problem is much worse than 08.
You are right, Canada has a problem with building a diversified economy. Homes are the asset class, how sad!
Massive immigration and foreign investment
American and European investment is much more diversified. The housing market it's were most investments are taking place in Canada , this is a recipe for disaster
Thanks Turdeau
This will end in tears
I wonder why Canada can't do a 30 Year fixed mortgage like in the states?
because banks benefit more when they force you to renew every few years, like everything else it costs more here than in the states
The Canadian government apparently hasn’t created something like Fannie Mae and Freddie Mac, which were started by the US Government. They buy mortgages from banks, offloading rate and default risk and freeing up capital. They package the mortgages into bonds and sell them to investors.
Fannie Mae was first - started by FDR in the 1930’s.
Because you'll own nothing and be happy
the loan is based on investor buying the bonds to finance the home. Not to many countries can attract investors to buy 30 yr bond,
we have them
What a statement, damn. So it's said that *VRI TOKEN* is just about to launch and I think that will really change a lot of what was happening in the previous years, 2023 will shine yay
between the two, I think I would still support *VRI TOKEN* : technically speaking, years ahead of the competitors,Brand power, easy development, flexible with source languages, quick tx...
If house prices crash, will property taxes go down?
Property tax assessments are allowed to lag market valuations significantly to prevent having to lower them later. Most property taxes in Canada have not adjusted up to the recent major increases in this bubble. For example a home assessed by your municipality as worth 400k is selling for 750k right now in my town. The taxes are based on 400k, but the bank giving a mortgage can still convince a property value assessment to come in near the 750k because other houses are selling for that for the past 2 years and why not? The municipality has it built in that if this massive property value bubble pops within a couple of years, they do not start having to assess downwards and lose slated future tax revenue to cover current spending outlays.
We need to kick tiff out of the bank of Canada
Idk about price, but I'm going with *VRI TOKEN* . I feel that regardless of gains and losses my funds are safe.
Anyone else feeling messed up with all the bad happening? Glad that *VRI TOKEN* is giving power to the people which is not what I personally expected but it's there and everyone can get a good share of that. Don't just take my words on this, best is if you have a grasp yourself what they wanna do and what the vision is like. Probably something which will change the next generations and decide if it makes sense to run digital currencies or not
Now they don't have "foreign buyers" to blame.
Prices are whatever banks and lender wants to be !!! They set the prices by doing appraisal and approval of mortgages!!! They are the ones who are pouring cash into real estate market!!! Buyers purchase homes as long as they can get mortgages!! No mortgages, No demand!!!
Government should lower the 32/40 ratio that lenders qualify mortgage applicants, maybe 26/36 , adjust accordingly, interest adjustment is to control the inflation, the better tool to control the real estate prices is the debt ratio, just lower it and you have way less demand !
Until their clients(mortgage borrowers) can't pay the interest cost to cover the loan cost the banks borrowed
House prices are set by what a willing and able buyer will pay- a buyer who often gets a loan from a bank. Appraisals no longer tend to come in at contract price- you can no longer try to sway the appraiser- big fines for trying to do that in this day and age- but without banks approving loans to buyers, you have less qualified buyers, and eventually prices will fall/ except if you have all cash foreign nationals buying homes at over full asking price.
But there's also cocaine money laundering. They let units sit empty as tenants just aren't worth the hassle.
@@markhirstwood4190 stock market is to risky, real estate, 10% to 25% return Annually is a much better investment, no need for rent income!
@@thefutureisnow8159 lenders qualify a buyer for $2M, then buyer purchases a $2M property! if qualified for $1M, then purchase a $1M property! It is the lender who decides to pay out how much for a property, not me and you ! Buyers borrow as much as possible to make profit on the borrowed money!!! $1M loan, in one year, prices are up by 15%, now you made $150,000 profit on the $1M borrowed , next year…….
An analyst that doesn't get that supply is limited, demand is only rising because of immigration spiking the biggest boom in population growth of all the western countries, and contractors cannot meet demand. This is unfortunately, not a bubble, it is the new norm as long as Canada stays the most attractive country for immigrants.
Canada hasnt seen anything yet🇨🇦
The only thing we haven’t seen is year 2100AD Canada plan of 100 million population.
How is Canadian Real Estate related to the well being of the American economy? Can someone please explain? Did the Canadian government bet against the American economy with Canadian Real Estate chips?
The problem with our bubble is i don't see how housing prices crash. If anything they will just lay flat until people can afford them because supply is so freaking low.
Do you guys have a new radio channel in BC?
Our bubbles resist better than other countries, not bad 😀
No way real estate only goes up. Everybody knows that. 😅
Trudeau has caused this mess. His policies are exactly why we have this problem.... shall I list them?
1)Government overspending, driving up the cost of inflation and interest rates
2)Carbon taxes which increases fuel costs and the costs of shipping materials
3)Opening the flood gates for immigration resulting in housing scarcity.
4)Mandating gender issues in the work force, making it harder for companies to find and employ workers. Slowing the building process.
5)Climate standards and laws that cause bureaucracy to slow up permits.
I could go on and on! He has to go.
5) Trudeau is morally bankrupt. Forgot one.
Shhh. The adults are talking.
@@josephsmith594 Your late to the Party!
@@ronl1633 Either none of Poilievre’s supporters understand contractions or one person in social media has multiple identities, making 36% support look like 96% support.
@@josephsmith594Liberals did a fundraiser dinner for $1000 this past week, look at the liberal parties bank account if you want to understand Contractions.
I bought my house in 1983 and paid $38,000.00 cash. People are too greedy.
Good job
Your days, you are able to have your wife not working and still but a house with an average income.
Bragging you had it easy is quite bad
Not only did you buy your house for cash but you have the best comment of these posts. Exactly, greed.
Would you be able to buy your own house cash if you were in the same position right now? Now you understand
Credit scores are just a form of federal control, so if you want to continue living a good life? it’s important to have a high score. My house and vehicles are paid off, I have one Visa card for all purchases, which gives me air miles, and I pay it off monthly, but my score bounces between 800 and 820 without changing any of my patterns, so it’s manipulated for some reason. *VRI TOKEN* made it stay at that range and getting it up
Bubble? It’s a big hole, not a bubble. Not building enough new housing units for decades created this situation.
What if it was design by the government all along. They saw a way to keep the bubble from bursting by keeping supply artificially low. In the long term I don’t know how this strategy works if interest rates remain this high.
What will happen to the Canadian housing market
@@SamZedder Do you really think politicians engage in long term planning for anything?
Their only goal is to win next election, not to make life better for ordinary citizens.
Half way through their term they abandon any pet projects they promised during the campaign and start working on getting re-elected.
Housing crisis did not start yesterday but suddenly it became “priority of the day”. Why now? Why didn’t they pay any attention to it during the last few elections campaigns?
One party will promise to build 2 million new affordable housing units, the other will promise something else. Neither will achieve anything they promised.
Wow! makes 100% sense, it’s difficult to disagree with whatever Philip has said. but the house prices in GTA has defied all levels of sense! and unfortunately may continue to do so.
He forgot to mention, it's by design. i believe
Veryyyyyyyyyyyy well said. the structure is like this . what are they trying to change ?
But you can't lose on property? Just keep borrowing repeatedly against the growing equity to leverage into yet more property. Rinse repeat. Get fabulously rich. What could go wrong.
I have heard the same arguments for the last 20 years... guess what - if you had waiting around to buy a house 20 years ago (especially in Toronto or Vancouver) you'd have lost out on a TON of appreciation. I you had waited 10 years ago, or even 5 years ago you'd have missed out as well. People need homes, and the population keeps rising. In the GTA we get about 300,000 new immigrants per year - where are you going to house those people? Have you seen how high the rental market? There simply aren't enough homes to accommodate everyone. The only way the housing market will go down is with a serious drop in population. Which doesn't seem likely any time soon.
true
Interest rates have been going down for the last 20 years. Little different now. People might need homes but they can only pay so much. What you need is disposable income to rise or this house of cards will come crashing down.
I've been hearing this for the last 20 years and still hasn't happened. According to the experts it was the wrong time to buy my house but I did anyways and now my mortgage is completely paid off.
Great you dumped your money into a home that is worth a portion of what you paid for it. You should have taken that money and put it in American currency.
Its not stopping this, some folks think... If I succeeded this will stop no... Everything goes like usual
Harper should’ve let that bubble pop in 2008! All the countries that went unscaved during 2008 crisis are on the same boat.
Harper! what about the last 8 years of Justin and the liberals? They have seen the home cost double and have done nothing. WE are not all in the same boat you can get a nice home for less than half in the USA.
And what happened in USA when the bubble popped up? House prices recovered in 3.5 years. So much of a bubble. We are transitioning from owners market to the rental market. Germanys 60% of population are renters. I don’t see them complaining about unaffordability.
@@ronl1633The monster was created by Harper and fed by Trudeau. Housing prices doubled under Harper too.
@@Mehmed317I'm guessing because you don't speak German and don't watch much German news. Affordability in the cities in Germany is a big and growing issue. Not Toronto or Vancouver levels yet but problematic and getting worse nonetheless.
No Buble at that time. Homes were affordable
This is just the start i was in the USA when the last house market started to fall apart it took around 5 years to bottom out we are just in the beginning of this melt down of Canadain house market.
Interesting take from guest "Largest Housing Bubble" why is it that all Economists and Historians are calling a Bubble to Pop. Even one economist Rosenberg had called Canadian Housing Bubble "The Biggest Bubble in the Universe"!
Bought my house in Montreal in 2015 for 1 mil. At peak 1.5 years ago, I cojld have sold at 2.2. Now MAYBE at 1.7. on top of this I pay 12,000 property tax! Tell me who can afford a 1.7 mil house at 5.5% interest rate with 12k in taxes. Lets say 1 mil mortgage. Thats 55k in interest plus 12k tax = 67k or 135k pretax income just for your house...LOL. I m not selling as kids still growing and hpouse is payed, BUT I can easily see the price being back down at 1 mil where I bought in a few years. MASSIVE BUBBLE.
People need to just plain quit trying to make it work on the overpriced big metropolitan areas. If people just dispersed and stop trying, all the bubbles would blow up immediately and require impossible levels of support to contain...the correction would benefit everyone long term.
You first.
@@hinkhall5291 way ahead of you 😂
This idea works great in the US. In Canada, not so much.
I used to work as a real estate agent, i have been warning people about the housing market for some time now, but no one wants to hear it. I know people who bought in out of fear of being priced out, fear is a poor reason to get into a market. I have also noticed that foreign investors are a big issue, driving prices up artificially.
This guest is just one of MANY ‘experts’ that have said the sky is falling, the sky is falling in the housing market since the 1990s. And, the sky has not fallen. Canada has 250 000 newcomers every year and terrible housing supply. I agree the BoC should have raised interest rates 5 years ago. I agree Canadians that bought in the last 2 years are over-leveraged. But that is not the majority of home owners. Plus, housing is a necessary commodity (it isn’t like Cdns bought Ferrari’s and mega yachts) and homes are not being built to accommodate the population. If needed, people will sell their homes or Airbnb and make it work. What is ridiculous is the high cost of living in Canada, but the price of homes in major cities may stumble but they certainly will not collapse.
Always has been. I shall dub it the "Perma Bubble". It will never end until they open up all the land, let the timber be chopped down on mass to bring down lumber prices and cut the red tape on new houses.
Housing needs to correct due to all the money printing, the prices are not realistic there's no value in the market, anybody with a brain could figure out bidding wars in a pandemic with the economy crippled, idiots need to suffer to bring back affordable housing period.
@@barrybrand2970 b i n g o!
Supply and demand issue.
and a stupid system. and a beneficial market for government and banks .
I still think *VRI TOKEN* has a great future because it's owned by amazon. Also I don't hear anyone about DFI? Taking the biggest blow right now. From 5000 euros to 330.... will this still work out in the future? And since BTC will fall even further I think we haven't seen the bottom yet!
Canada hold my Beer 🍺
Australia
When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss *VRI TOKEN*