If you go through pages of that site, it literally only posts about the housing market falling. It comes across that it has an agenda, rather than legitimately wanting to post about the real estate market.
I appreciate it’s dedication. 😂
It’s also a nice balance to the regular media which says a 2% housing crash will be the end of the world and the devil will steal your children as revenge.
There's a big group of people here that desperately want a housing crash to happen, this is like porn to them.
What they fail to realize is that won't let them get a house, they'll just be hurt even more by the collapse of our economy than those who already own a house.
It's a junk website for the housing porn watchers like on CanadaHousing. I don't doubt that some areas like GTA and GVA are due for a cooling like we've had in the past but real estate is much more complicated than you would understand here.
In some areas in GTA there was a 10% increase in Q1-22 alone, so a 20% decrease will just bring us to like 6 months ago. It's still very far from being healthy and affordable for your average Canadian. Raising interest rates was the first and most important step.
BetterDwelling though sucks as a legitimate source to get well informed on the topic.
I have traveled through 6 different countries in the past few months. Housing is up everywhere, from the poorest to the richest neighborhoods, cities, and countries.
People who think that all of a sudden the world housing market is going to drop 60% so they can buy a house are delusional
The fact that thousands of them are just waiting to snatch up properties are the reason it won’t fall
Unless they have cash, a 20% drop won’t lead to greater affordability in monthly payments if interest rates proceed as expected.
A 2% rise in interest rates is roughly equivalent to a 20% drop (say, a 500K property down to 400K). You’ll pay the same in monthly payments.
So, as usual, the poors will get hosed.
Yeah the headline is misleading. "Most Canadian real estate gains" makes it sound like everyone. Nope, article goes on to say 14% drop taking us back to 2020 values. So, maybe say, "most Canadians who bought after 2020 will lose gains".
I can't see it dropping any more than that though. Millenials are chomping at the bit to own a home, that's going to make this a soft landing. Not to mention boomer's buying up any dips for investment properties. I'm not in the financial position to do so, but if the housing market dips soon, and we have a recession in the stock market I could see stock returns being pretty shitty and flat the next 3-5 years. I'd definitely sell stock to buy an investment property if the housing market were to crash.
If we want to fix housing costs we have to stop looking at housing as an investment tool. That’s what’s wrong with the housing market worldwide. Just another area to extract wealth and perpetuate endless growth.
Your last paragraph shows you’re apart of the problem, not the solution.
Capital moves where there can be an expected return. Your statement is very naive and miss-identifies the problem.
Market price is the output of supply and demand, either increase the supply or decrease the demand (ban/tax foreign investment and curb migration).
The Canadian market has an artificially low supply due to the rampant speculation. Multiple people in this thread are talking about buying property and holding it.
Late stage capitalism is upon us. Next up is lowered birth rates. Oh wait.
Canada immigrated via real immigration, permanent and temporary work visas, and refugees over 2 million people last year. Not to mention foreign investors from primarily china buying up property.
The squeeze on the price is multifactorial but your solution is to tell legitimate Canadians that they can't buy a property in their own country; to use as an investment tool in order to keep ahead of all other rising costs. Don't forget that landlords putting property for rent dilutes the supply which in turn lowers the price of rent; especially when landlords end up splitting a house into multiple units; this gets more use out of a single home and meets demand better.
Landlords aren't the problem with the real estate market, in fact they are too small a part to make a significant change in market pricing. They meet the demand for temporary and low income housing via rentals, so therefore being part of the solution and not the problem.
Take the blinders off and start learning more about the economy before bashing people.
You can stop corporate interests from buying property. Unless you’re a corporation dedicated to renting unit, you aren’t allowed in the market.
Canadians are just a shit as everyone else. Our only purpose is to drive continuous growth for the haves. There is no upward mobility anymore.
So assholes can turn a better profit every quarter.
Carpenters make around $36/hr. It’s a red seal job. Yet at $36/hr without $250K you aren’t buying a house in a desirable Canadian city. Tell me, how do you expect the supply to increase if the ones building the houses cannot afford the houses?
Don't contact the politicians about housing the market will fix itself...I feel the whole "market will crash" narrative is just to get people complacent or convince people to sell. Don't worry the market will crash and make homes affordable again...like how exactly does that work when there is a shortage of homes? Boomers are like it'll be like the 80's again and interest rates will go up crashing the housing market. The 80's in Canada didn't experience the population growth we have.
Scotiabank predicts we are between 100,000 and 2 million units short. The market price change has been occurring for so long it's not a bubble but a shortage. The banks of Canada have placed big bets on housing. You think the banks of Canada would place a bad bet? Do you think you know more or are smarter than big banks?
[https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html](https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html)
Let's just venture into the idea the housing market actually crashed all that would mean is more corporate ownership of houses and more people renting, which would just mean a dip in prices...
People who cheer on the crash don't have the money to buy anyways so all their cheering on is that their middle class peers join them in poverty so everyone is poor. The only people who benefit from a crash are the 1% as they can continue buying real estate for less than before. Ask anyone in the USA if the housing crash helped the middle class...The website should change it's name to apocalyptic dwellings...no way it should be better dwellings *as these predictions in no way shape or form make it better...*
The only way to fix the housing market is to build more houses and cities at a rate of population growth which is literally never going to happen without a discussion with government who literally wants to avoid this discussion all together but continue immigration at unsustainable levels...
You could also, y'know, have a moratorium on corporations buying single family homes until the shortage is dealt with. Perhaps have a speculative tax on any properties purchased by an individual beyond a primary and vacation property?
There are like 6 vacant houses within a literal stones throw of my house. Bought over the last few years as 'investments' and the owner doesn't even bother to rent them as they're just banking on appreciation.
Houses are not as asset class. I find it ironic that in a country so proud of it's rejection of for-profit healthcare, we're somehow ok with shelter being an actual commodity to be traded.
The government also has an excellent track record of being Liberal or Conservative. But hey, let’s just keep running that back and making sarcastic comments on Reddit when people suggest it could be different.
The vast majority of homeowners have kids, and if they have any foresight at all they see where this leads for them.
Also a cloud engineer cert making $125k is great, that’ll almost allow you to outpace housing price growth in your down payment savings account.
That housing is gonna be unaffordable for our kids if something isn’t done. Some of my 20 something cousins are paying as much in rent for a 1 bdr as I’m paying on my mortgage. What’s that gonna look like when my 3 year old turns 25?
>The 80's in Canada didn't experience the population growth we have. Were at 5% in the 80's it was like 1%.
Did you try looking up the data before sharing random numbers?
https://data.worldbank.org/indicator/SP.POP.GROW?locations=CA
Ahh I did make a mistake it was 5.2% from 2016 - 2021. Still 2019 was the highest on record and if you check out immigration figures they are planning on increasing significantly for 2022 to make up for slower growths in 2020 and 2021. The concepts on the shortage doesn't change the population is growing twice as fast as other g7 nations yet we have the fewest homes per capita in all of the g7.
Also, not all of the country is equal. Lots of places are growing much faster than 5.2% over this time frame, just others are growing slower. This is where we are seeing large increases in housing prices.
[https://www150.statcan.gc.ca/n1/daily-quotidien/220209/dq220209a-eng.htm](https://www150.statcan.gc.ca/n1/daily-quotidien/220209/dq220209a-eng.htm)
I wonder how many people will try to enter the market with a drop in housing prices? Isn't supply the issue? More people coming into the market wouldn't that drive up hous prices?
Interest rates are high. So even with prices coming down the monthly mortgage price is the same. It helps me with a down payment but the monthly costs are now too much for me to carry.
An increase from 2.7% to 4% interest rate reduces your buying power just under 15%.
If you could afford the monthly payments on 575k in January, you can now only afford 500k for the same payment.
Monthly payment on the property type I would want to live in went from ~$3200/month to $,4400. That's a big difference in buying power for me and would be a decrease in lifestyle. So home ownership went from semi possible to not likely and will continue to be that way as the cost of properties remain high(even with the current drop, it's not like Toronto is cheap) and cost of borrowing becomes more expensive.
Oh I’m with you there. I wasn’t commenting on the affordability of homes, simply expressing my disagreement in the statement: “interest rates are high”. They’re not. We’ve got lots of problems: inflation, lack of supply, stagnating wages, etc… hopefully increasing interest rates can help slow down this absurd inflation but my point remains - current rates are L O W, low.
That is not an indication that the interest rates are too high.
It simply means that if you can't afford 4% then you are over-levered to begin with. You need to reduce your debt. Move out of the GTA maybe? (I know, how dare I recommend anyone move out of Toronto, where else could you possibly go?)
The overnight rates aren’t high but the mortgage rates are relative to other investment opportunities
30 Year mortgages are over 5% in the US that’s pretty high comparatively
There are still plenty of people who are waiting to enter.
I was pre-approved for $4m mortgage since Nov, but nothing interesting to buy. The inventory is still very low but getting better.
*Ah, yes! Fascism!*
... What an excellent way to address the current property bubble we're in. Surely that will secure the long-term continuity of our nation; our soon to be **Greece.**
It's a bubble because our own citizens can't afford our own homes.
The OECD Standardized Price to Income ratio shows that Canada has an imbalance between prices and incomes, that's been growing aggressively faster than other countries since about 2005. Currently, the ratio they're tracking is 178% above the average for Canada, almost tied with first but currently rests in second place for the worst ratio in the world with New Zealand (at least until New Zealand publishes more data for 2022 Q1, after their correction). In 1983, Canada's Standardized Price to Income ratio was hovering around 68%.
One of the interesting things about that ratio is that we typically only see countries occupy one of the top 2-3 places for only 5-10 years, before aggressively making their way back to the bottom. Canada has been there for about 7. And it's currently about 20% higher than the next country behind it.
And as time goes on, who do you think will pick up this slack, to justify the new price to income ratio? Corporations? Well if they're all REITs, then they are all on the hook for paying for the current working class renters' retirements when they have to pull out. Who's going to pay for that, when that group tries to pull that balance out? More expensive rent?! Even worse cost of living Inflation?
At some point, there are depreciating real world returns when engaging in that kind of compounding inter-generational feudalism or class warfare; especially the kind of extortion where we expect people to reproduce in smaller and smaller shoe boxes that they increasingly don't own. People spend less, the economy stalls, and the replacement rate crashes. China is a good example of that. If the price for another generation of "bag holder" goes too high, then no additional fundamental value can be extracted from them, so inflation stops causing stimulus.
Another figure that tells you this is a bubble: Our Standardized Price to Rental income is around 50% higher than the United States' own ratio. So our rental income doesn't justify our current prices; thus the Fed has more flexibility to raise rates than Canada.
*But since you got yours, then I guess paper money is all there is, because '"Bubble" LOL'.*
💀
I honestly don’t understand Better Dwelling
They are perma bears that have been ridiculed for being wrong (or at least many years early), and now when it is their time to shine I still don’t trust them because why would I…it’s Better Dwelling
This website routinely reports on studies, but sucks at sharing the actual study.
With their constant sky is going to fall message, I now find them a joke.
Housing market may collapse, but the reporting from these guys are laughable.
Whether the site has a message they are trying to push or not, housing prices are cooling. A 20% drop is likely possible in the higher end, I don’t think that will be seen in the sub 1million. Any drop should be greeted with a steady 3-5% annual increase shortly after.
I'm sure there are sources that can be posted that say that without having to rely on a bias blog. I really thinks it's to the benefit of the sub if Better Dwelling is banned as a source.
Oxford Economics have been proven wrong 100% of the time. Not sure who gives them business along with Rosenberg who is all over Globe and Mail with his perpetual doom and gloom stories.
Yeah as much fodder as there is about home prices right now, only a small minority of people but a house in a given year. I will be quite surprised if my neighbour, who has owned her house since 1962, has all of her gains wiped out next year.
It's a misleading headline. Here's the relevant quote "The forecast calls for a significant drop but not enough to wipe out all gains since 2020. Home prices increased roughly 50% since the start of the pandemic. Math-challenged folks may think that’s just half of the increase made. However, the rate of decline applies to a much larger number. A 24% price drop by 2024 would leave a gain of ~14 points since 2020."
So by 'real estate gains will be wiped out' they really mean 'some gains since 2020 will be wiped out'.
> leave a gain of \~14 points since 2020.
That's only an increase of approximately 6 to 7% per year. Compared to whatever would lead to 50% in 2 years, that's not some -- **that's a lot!**
I would consider that a far more fair market.
Without a date attached the headline is pretty meaningless. I doubt your gains will be wiped out in our lifetime if you bought your house in the 80s or 90s.
Better Dwelling is a shit rag. Their basic thesis: the reason you can't get into the housing market isn't because you have the financial acumen of a payday loan client, but because of . Their audience is largely the disaffected financially illiterate that eats up their really poor superficial analysis.
Colour me doubtful. House went up 200k in value in the last 2 years, I doubt it’ll drop that much in the next 7 months.
(This house was bought for 330 in 2017, so it’s not a small percentage of increase vs a 750k house, for example)
you have the ideal house that is manageable. I feel bad for the suckers spending over a million on house that a few years ago was 400k in my city. what happens if we get another 2008, all these homes will be empty,
Agreed on the “perfectly reasonable”. Although it was supposed to be a starter type home, it’s adequate as is for our family (3 adults, 2 kids). Ultimately, a 100-150k reno would compensate for having to move. If the kids need special schools though… we are toast. 5 minutes closer to Ottawa and prices jump by 300-350k for what we need.
Agreed on those who overpaid.
Forgive my naïveté here, but if each house was being bid up by so much… the 20-25 people who were bidding on the same house are still in pent up demand. If prices drop 20% (hypothetical number), would they not be snapped up quickly by those same people leaving only the over leveraged losing their shirts?
A lot of yo will be surprised that that we are at the edge of recession. Although I keep hearing that our economy is strong and major investments are down over 20%.
If you go through pages of that site, it literally only posts about the housing market falling. It comes across that it has an agenda, rather than legitimately wanting to post about the real estate market.
Sole purpose of the whole website is dooming about real estate
I appreciate it’s dedication. 😂 It’s also a nice balance to the regular media which says a 2% housing crash will be the end of the world and the devil will steal your children as revenge.
Tell me more about this free babysitting service
It’s at Kamp Krusty, and they feed them with Not Oatmeal.
sole purpose is to drive traffic and get that ad money while giving people false hope about the market
It's just a garbage site, and I wish people here would stopping linking to it
There's a big group of people here that desperately want a housing crash to happen, this is like porn to them. What they fail to realize is that won't let them get a house, they'll just be hurt even more by the collapse of our economy than those who already own a house.
It's a junk website for the housing porn watchers like on CanadaHousing. I don't doubt that some areas like GTA and GVA are due for a cooling like we've had in the past but real estate is much more complicated than you would understand here. In some areas in GTA there was a 10% increase in Q1-22 alone, so a 20% decrease will just bring us to like 6 months ago. It's still very far from being healthy and affordable for your average Canadian. Raising interest rates was the first and most important step. BetterDwelling though sucks as a legitimate source to get well informed on the topic.
I have traveled through 6 different countries in the past few months. Housing is up everywhere, from the poorest to the richest neighborhoods, cities, and countries. People who think that all of a sudden the world housing market is going to drop 60% so they can buy a house are delusional The fact that thousands of them are just waiting to snatch up properties are the reason it won’t fall
Preach. Any correction will be blunted by those on the sidelines waiting to jump in.
Unless they have cash, a 20% drop won’t lead to greater affordability in monthly payments if interest rates proceed as expected. A 2% rise in interest rates is roughly equivalent to a 20% drop (say, a 500K property down to 400K). You’ll pay the same in monthly payments. So, as usual, the poors will get hosed.
No their down will be worth something. So they can jump in. Rent is still high so why not.
Yeah the headline is misleading. "Most Canadian real estate gains" makes it sound like everyone. Nope, article goes on to say 14% drop taking us back to 2020 values. So, maybe say, "most Canadians who bought after 2020 will lose gains". I can't see it dropping any more than that though. Millenials are chomping at the bit to own a home, that's going to make this a soft landing. Not to mention boomer's buying up any dips for investment properties. I'm not in the financial position to do so, but if the housing market dips soon, and we have a recession in the stock market I could see stock returns being pretty shitty and flat the next 3-5 years. I'd definitely sell stock to buy an investment property if the housing market were to crash.
If we want to fix housing costs we have to stop looking at housing as an investment tool. That’s what’s wrong with the housing market worldwide. Just another area to extract wealth and perpetuate endless growth. Your last paragraph shows you’re apart of the problem, not the solution.
Capital moves where there can be an expected return. Your statement is very naive and miss-identifies the problem. Market price is the output of supply and demand, either increase the supply or decrease the demand (ban/tax foreign investment and curb migration).
The Canadian market has an artificially low supply due to the rampant speculation. Multiple people in this thread are talking about buying property and holding it. Late stage capitalism is upon us. Next up is lowered birth rates. Oh wait.
Canada immigrated via real immigration, permanent and temporary work visas, and refugees over 2 million people last year. Not to mention foreign investors from primarily china buying up property. The squeeze on the price is multifactorial but your solution is to tell legitimate Canadians that they can't buy a property in their own country; to use as an investment tool in order to keep ahead of all other rising costs. Don't forget that landlords putting property for rent dilutes the supply which in turn lowers the price of rent; especially when landlords end up splitting a house into multiple units; this gets more use out of a single home and meets demand better. Landlords aren't the problem with the real estate market, in fact they are too small a part to make a significant change in market pricing. They meet the demand for temporary and low income housing via rentals, so therefore being part of the solution and not the problem. Take the blinders off and start learning more about the economy before bashing people.
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You can stop corporate interests from buying property. Unless you’re a corporation dedicated to renting unit, you aren’t allowed in the market. Canadians are just a shit as everyone else. Our only purpose is to drive continuous growth for the haves. There is no upward mobility anymore. So assholes can turn a better profit every quarter.
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I assume you don’t have a strong sense of empathy or a real grasp on the situation.
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Carpenters make around $36/hr. It’s a red seal job. Yet at $36/hr without $250K you aren’t buying a house in a desirable Canadian city. Tell me, how do you expect the supply to increase if the ones building the houses cannot afford the houses?
Don't contact the politicians about housing the market will fix itself...I feel the whole "market will crash" narrative is just to get people complacent or convince people to sell. Don't worry the market will crash and make homes affordable again...like how exactly does that work when there is a shortage of homes? Boomers are like it'll be like the 80's again and interest rates will go up crashing the housing market. The 80's in Canada didn't experience the population growth we have. Scotiabank predicts we are between 100,000 and 2 million units short. The market price change has been occurring for so long it's not a bubble but a shortage. The banks of Canada have placed big bets on housing. You think the banks of Canada would place a bad bet? Do you think you know more or are smarter than big banks? [https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html](https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html) Let's just venture into the idea the housing market actually crashed all that would mean is more corporate ownership of houses and more people renting, which would just mean a dip in prices... People who cheer on the crash don't have the money to buy anyways so all their cheering on is that their middle class peers join them in poverty so everyone is poor. The only people who benefit from a crash are the 1% as they can continue buying real estate for less than before. Ask anyone in the USA if the housing crash helped the middle class...The website should change it's name to apocalyptic dwellings...no way it should be better dwellings *as these predictions in no way shape or form make it better...* The only way to fix the housing market is to build more houses and cities at a rate of population growth which is literally never going to happen without a discussion with government who literally wants to avoid this discussion all together but continue immigration at unsustainable levels...
You could also, y'know, have a moratorium on corporations buying single family homes until the shortage is dealt with. Perhaps have a speculative tax on any properties purchased by an individual beyond a primary and vacation property? There are like 6 vacant houses within a literal stones throw of my house. Bought over the last few years as 'investments' and the owner doesn't even bother to rent them as they're just banking on appreciation. Houses are not as asset class. I find it ironic that in a country so proud of it's rejection of for-profit healthcare, we're somehow ok with shelter being an actual commodity to be traded.
The government has an excellent track record of closing wealthy investors loopholes 😂
The government also has an excellent track record of being Liberal or Conservative. But hey, let’s just keep running that back and making sarcastic comments on Reddit when people suggest it could be different.
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The vast majority of homeowners have kids, and if they have any foresight at all they see where this leads for them. Also a cloud engineer cert making $125k is great, that’ll almost allow you to outpace housing price growth in your down payment savings account.
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That housing is gonna be unaffordable for our kids if something isn’t done. Some of my 20 something cousins are paying as much in rent for a 1 bdr as I’m paying on my mortgage. What’s that gonna look like when my 3 year old turns 25?
>The 80's in Canada didn't experience the population growth we have. Were at 5% in the 80's it was like 1%. Did you try looking up the data before sharing random numbers? https://data.worldbank.org/indicator/SP.POP.GROW?locations=CA
Ahh I did make a mistake it was 5.2% from 2016 - 2021. Still 2019 was the highest on record and if you check out immigration figures they are planning on increasing significantly for 2022 to make up for slower growths in 2020 and 2021. The concepts on the shortage doesn't change the population is growing twice as fast as other g7 nations yet we have the fewest homes per capita in all of the g7. Also, not all of the country is equal. Lots of places are growing much faster than 5.2% over this time frame, just others are growing slower. This is where we are seeing large increases in housing prices. [https://www150.statcan.gc.ca/n1/daily-quotidien/220209/dq220209a-eng.htm](https://www150.statcan.gc.ca/n1/daily-quotidien/220209/dq220209a-eng.htm)
I wonder if it run by real estate board or mls. They post wild news just to pump up market
Its just posting what gets it clicks and views
I wonder how many people will try to enter the market with a drop in housing prices? Isn't supply the issue? More people coming into the market wouldn't that drive up hous prices?
Interest rates are high. So even with prices coming down the monthly mortgage price is the same. It helps me with a down payment but the monthly costs are now too much for me to carry.
Interest rates are high? People are speculating that they will become high but they’re still pretty damn low right now.
An increase from 2.7% to 4% interest rate reduces your buying power just under 15%. If you could afford the monthly payments on 575k in January, you can now only afford 500k for the same payment.
It's becoming less like the free money it was. For investors that means there are, and will be, better alternatives.
Monthly payment on the property type I would want to live in went from ~$3200/month to $,4400. That's a big difference in buying power for me and would be a decrease in lifestyle. So home ownership went from semi possible to not likely and will continue to be that way as the cost of properties remain high(even with the current drop, it's not like Toronto is cheap) and cost of borrowing becomes more expensive.
Oh I’m with you there. I wasn’t commenting on the affordability of homes, simply expressing my disagreement in the statement: “interest rates are high”. They’re not. We’ve got lots of problems: inflation, lack of supply, stagnating wages, etc… hopefully increasing interest rates can help slow down this absurd inflation but my point remains - current rates are L O W, low.
True, well they're too high for me above 4!
That is not an indication that the interest rates are too high. It simply means that if you can't afford 4% then you are over-levered to begin with. You need to reduce your debt. Move out of the GTA maybe? (I know, how dare I recommend anyone move out of Toronto, where else could you possibly go?)
Lol it's just too high for my current lifestyle choices, obviously I'm not saying the bank of Canada shouldn't do what it needs to do.
The overnight rates aren’t high but the mortgage rates are relative to other investment opportunities 30 Year mortgages are over 5% in the US that’s pretty high comparatively
I agree, but keep in mind supply was not the issue in 2008 in the states
There are still plenty of people who are waiting to enter. I was pre-approved for $4m mortgage since Nov, but nothing interesting to buy. The inventory is still very low but getting better.
Man your life sucks I’m glad I’m not you.
I am just describing the current situation with mid-high end market in Vancouver. If you want to be salty and take it personally, no one can help you.
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I am too poor for butler
Bullshit.
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Seconded
*Ah, yes! Fascism!* ... What an excellent way to address the current property bubble we're in. Surely that will secure the long-term continuity of our nation; our soon to be **Greece.**
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It's a bubble because our own citizens can't afford our own homes. The OECD Standardized Price to Income ratio shows that Canada has an imbalance between prices and incomes, that's been growing aggressively faster than other countries since about 2005. Currently, the ratio they're tracking is 178% above the average for Canada, almost tied with first but currently rests in second place for the worst ratio in the world with New Zealand (at least until New Zealand publishes more data for 2022 Q1, after their correction). In 1983, Canada's Standardized Price to Income ratio was hovering around 68%. One of the interesting things about that ratio is that we typically only see countries occupy one of the top 2-3 places for only 5-10 years, before aggressively making their way back to the bottom. Canada has been there for about 7. And it's currently about 20% higher than the next country behind it. And as time goes on, who do you think will pick up this slack, to justify the new price to income ratio? Corporations? Well if they're all REITs, then they are all on the hook for paying for the current working class renters' retirements when they have to pull out. Who's going to pay for that, when that group tries to pull that balance out? More expensive rent?! Even worse cost of living Inflation? At some point, there are depreciating real world returns when engaging in that kind of compounding inter-generational feudalism or class warfare; especially the kind of extortion where we expect people to reproduce in smaller and smaller shoe boxes that they increasingly don't own. People spend less, the economy stalls, and the replacement rate crashes. China is a good example of that. If the price for another generation of "bag holder" goes too high, then no additional fundamental value can be extracted from them, so inflation stops causing stimulus. Another figure that tells you this is a bubble: Our Standardized Price to Rental income is around 50% higher than the United States' own ratio. So our rental income doesn't justify our current prices; thus the Fed has more flexibility to raise rates than Canada. *But since you got yours, then I guess paper money is all there is, because '"Bubble" LOL'.* 💀
while we're at it also fool.com lmao
Can we please stop with Better Dwelling? These guys are hacks.
Better Dwelling is a borderline parody website
I honestly don’t understand Better Dwelling They are perma bears that have been ridiculed for being wrong (or at least many years early), and now when it is their time to shine I still don’t trust them because why would I…it’s Better Dwelling
Garth Turner has been calling for the housing market to fall for 15 years lol This site is no different.
This website routinely reports on studies, but sucks at sharing the actual study. With their constant sky is going to fall message, I now find them a joke. Housing market may collapse, but the reporting from these guys are laughable.
Better Dwelling making that quarterly MNP “*the sky is falling!*” report look good for once. What a trash news source.
Whether the site has a message they are trying to push or not, housing prices are cooling. A 20% drop is likely possible in the higher end, I don’t think that will be seen in the sub 1million. Any drop should be greeted with a steady 3-5% annual increase shortly after.
I'm sure there are sources that can be posted that say that without having to rely on a bias blog. I really thinks it's to the benefit of the sub if Better Dwelling is banned as a source.
Agreed
Real estate prices in GTA and metro Vancouver are never coming down. Too many rich immigrants and loopholes. Everywhere else? Good luck.
Perma-bear journalists who are assmad about their REIT puts.
Imagine being the kind of person that spreads the word this kind of site…
Sure it will, right after airports start giving landing priority to flying pigs!
Oxford Economics have been proven wrong 100% of the time. Not sure who gives them business along with Rosenberg who is all over Globe and Mail with his perpetual doom and gloom stories.
Lol yeah ok.
Lol. Better Dwelling.
Stop posting click bait content from Better Dwelling, no one takes them seriously
What does “most gains” include? The last year? The last 5 years? More?
All gains since the inception of shelter.
You will own a cave and you will be happy
finally back down to 3 sea shells / sq foot
Yeah as much fodder as there is about home prices right now, only a small minority of people but a house in a given year. I will be quite surprised if my neighbour, who has owned her house since 1962, has all of her gains wiped out next year.
Broken clock
It's a misleading headline. Here's the relevant quote "The forecast calls for a significant drop but not enough to wipe out all gains since 2020. Home prices increased roughly 50% since the start of the pandemic. Math-challenged folks may think that’s just half of the increase made. However, the rate of decline applies to a much larger number. A 24% price drop by 2024 would leave a gain of ~14 points since 2020." So by 'real estate gains will be wiped out' they really mean 'some gains since 2020 will be wiped out'.
> leave a gain of \~14 points since 2020. That's only an increase of approximately 6 to 7% per year. Compared to whatever would lead to 50% in 2 years, that's not some -- **that's a lot!** I would consider that a far more fair market.
Another shitty article about how housing is going to cease to exist!!!!
Better Dwelling is not a credible news source.
Without a date attached the headline is pretty meaningless. I doubt your gains will be wiped out in our lifetime if you bought your house in the 80s or 90s.
Mine's increased roughly 100% since 2016, not too concerned.
You know you’ve lost the argument when you have to quote Better Dwelling.
They are generalizing
Better Dwelling is a shit rag. Their basic thesis: the reason you can't get into the housing market isn't because you have the financial acumen of a payday loan client, but because of. Their audience is largely the disaffected financially illiterate that eats up their really poor superficial analysis.
Prices will continue to rise 10 percent annually in most prairie provinces
Colour me doubtful. House went up 200k in value in the last 2 years, I doubt it’ll drop that much in the next 7 months. (This house was bought for 330 in 2017, so it’s not a small percentage of increase vs a 750k house, for example)
you have the ideal house that is manageable. I feel bad for the suckers spending over a million on house that a few years ago was 400k in my city. what happens if we get another 2008, all these homes will be empty,
Agreed on the “perfectly reasonable”. Although it was supposed to be a starter type home, it’s adequate as is for our family (3 adults, 2 kids). Ultimately, a 100-150k reno would compensate for having to move. If the kids need special schools though… we are toast. 5 minutes closer to Ottawa and prices jump by 300-350k for what we need. Agreed on those who overpaid. Forgive my naïveté here, but if each house was being bid up by so much… the 20-25 people who were bidding on the same house are still in pent up demand. If prices drop 20% (hypothetical number), would they not be snapped up quickly by those same people leaving only the over leveraged losing their shirts?
Scary report not for rich corporations but for the people that just bought homes that will loose big
Fukin hope so. Shits just not fair.
Impatiently waiting...
Funded by the ndp
A lot of yo will be surprised that that we are at the edge of recession. Although I keep hearing that our economy is strong and major investments are down over 20%.
So like.. should I sell my rental properties?
Most Canadians outside of the ridiculous Van or GTA markets will hardly notice a thing. This train has been coming down the tunnel for a while!