Canada housing bubble reddit 2022.
Updates and news about Canada's housing crisis.
Canada housing bubble reddit 2022 Buy when you want/need to, but be prepared to lose 10% in value at least and don't bank on housing being a money maker for you for the next decade. Based on average household size, that would be a loss of 345,680 households. 0 after the election in 2021, instead of saying inflation - already out of control in housing, stocks, etc - was “transitory. By 25, prices stayed down, inflation was under control, rates were reasonable and houses were much more affordable. Nations like Australia that supply China's ghost cities with raw materials are going to be severely hit. A little bit like a duck. Well, in countries with price controls on rent the housing prices go through the roof. Those bubbles seemed just as rational in their day. We have a bubble in nearly every major asset class this time and it's global. Mortgage rate. And that's especially true for Canada as we had the biggest or most serious housing bubble of all the G7 countries. Posted by u/mattcrash - 62 votes and 71 comments One of my friends is from Thailand, a red seal chef. Canada need 3. Betting against housing is betting against the central banks of the world and betting that the western economy completely crashes. But if Canada blows up, then you better hope the rest of the world blows up too. Another difference was that the entire experience was only felt in the gta (& possibly other southern cities). I don't see a lot of risk-free return speculating on housing right now, which should also alleviate some pressure. ” Updates and news about Canada's housing crisis. 7% in November from October and 3. Reading up on old bubbles like the South Sea Bubble and the Tulip Bubble are instructive because we don't have any preconceived ideas about tulips or South Sea Company stocks in 2020 like we do with Toronto and Vancouver housing. Here's the thing about Canada's housing bubble - We're actively growing our population by 1% a year with people largely in the house buying, family making age demographic. It might be a bit worse in Canada than other places but that might be because of other problems. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The Fed should NEVER have gone to 0 - they did 1. The 00s. r/HousingMarketBubble: Talking about the inflated housing market bubble and why we are in a bubble. It was pumping money into housing, restrictions on things like sub-dividing lots, low taxes on home ownership and the profits of primary residences, urban sprawl, investors buying "income properties", and several other factors. The only way housing blows up is if our entire economy blows up too (or vice versa). After that happens I give it at least 6-12 months to begin seeing a substantial decrease in prices. Price peaked in June 2022 and already began to drop in most areas. Greater Toronto Area, single-family MLS Home Price Benchmark Index: Like r/CanadaHousing but without the censorship. CDC excess deaths are 874,572 since 2/2020. I’m not gonna predict a housing correction/crash until the Fed starts to tighten monetary policy. Realistically, house prices will stabilize and perhaps drop slightly, but I just Like r/CanadaHousing but without the censorship. It walks like a duck, it looks like a duck, it certainly might be a duck. 0 after the dotcom crash, which led to a housing bubble. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Homelessness explodes in Canada as rents and housing prices soar (Again Canada housing never corrected in 2008, they have always had very cheap 5 yr arms. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Like r/CanadaHousing but without the censorship. Like r/CanadaHousing but without the censorship. In a 2024 report, the Canada Mortgage and Housing Corporation said despite a record number of Jan 6, 2022 路 In February, a study of “the world’s least affordable housing markets” showed how Canada’s speculative bubble has made Toronto and Vancouver one of the world’s frontrunners when it comes to unaffordable housing. Housing is government backed and insured in Canada. Regardless of that, Canada's real estate is the biggest bubble in history. 1. [17] [18] Broadbent Institute analysis concluded that Canada's "housing system is unsustainably financializing and concentrating control over basic human rights. Housing is not in its own little bubble. Updates and news about Canada's housing crisis. Scary thing is, what if this is just the price now. In housing specifically, which is a need and different from other forms of assets, I would consider a bubble to be a situation where either there is little actual demand for housing outside of people speculating, or where the demand is artificially created like what happened in the US (though a good portion of that collapse was caused by what commercial banks were doing with mortgage backed This works against owners trying to rent out property if they bought the property in 2022 or later Basically there is a supply of housing waiting to be unlocked it’s not that it doesn’t exist. Nous parlons en anglais et en français. 2022 Average Salary in Canada $44kUSD Canada income to housing ratio 12 2022 Average house in US $543kUSD 2022 Average Salary in US $57kUSD US income to housing ratio 9. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The article calls for a total of a 30% drop from the February 2022 peak of $1,334,544 (already down 18%). Canadian housing affordability is now the worst in not one, but two generations. ) soon to be wrecked Canada’s real estate bubble has expanded at an astonishing pace, outpacing the growth of home prices in the United States by over 800%. I think Washington post likely just paid him for an opinion piece on economics that aligns with a perspective they wanted. Propping up the housing market with mass immigration will lead to one possibility. There is a lot more stock out there at much better prices than in '21. Please be respectful of each other when posting, and note that users new to the subreddit might experience posting limitations until they become more active and longer members of the community. 5 million new units in 6 years to get back to housing affordability in 2030, Immigration, Refugees and Citizenship Canada (IRCC) current goal is to bring in 1. That’s the gambit. Large numbers of immigrants are leaving after 4-6 years. Everything bubble driven by fiscal and monetary policy. If you bought in 2011 in the GTA and sold now, you are not actually ahead in terms of relative affordability since unless you leave the GTA market entirely, you will be buying right back in at the same high prices. Nobody wants housing market to crash except the ones without housing already. That said, it seems that many properties which were hovering at their peak or going lower, from April to August, have somehow substantially gained in worth. We want common sense housing laws that ensure: transparency and ample housing stock, to make Canada's housing the most affordable in the G7. Ratios to buy houses in Canada vs. No parking, not “luxury”, just 1-3 bedroom apartments for sale in cities that are 4-6 stories high like Europe has. And the 80s. - So after reading all of the above, you're saying Wow! that's a lot of bad news. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Condo prices are also going to rise, but fixes on the demand side (regulations) will have more of an impact here than on housing as new condo projects are in constantly in the process of being implemented. Unfortunately, politicians (the Bank of Canada counts as honorary politicians) at all levels have pumped so much credit into this housing bubble that in Dec. Statistics Canada deals with this situation by trying to evaluate the price of housing services, as opposed to the price of a house. 4% YoY, back to Sep 2021. Sold housing has shifted to larger properties and detached and prices have gone up 1% overall implying that comparables are down. incomes are already pretty bad. You can only raise the rent a few percent every year. Pinto expects home values to continue to appreciate year-over-year at 17% or higher in 2022. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? At this point, Bank of Canada can’t afford to let the housing bubble unravel. This lead to the worlds largest housing bubble. The housing crisis is one that will see Canada lose a lot of talented people. The problem with the 30% decline prediction 5-year fixed mortgage rates are currently 5. Two weeks ago, he predicted the S&P will go down to 2,500 which is an absolute crash. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Updates and news about Canada's housing crisis. You see, interest rates are low, demographics are shifting, remote work, homes only go up, they aren't building enough homes, there isn't enough land, there is too much demand, corporations will buy up all the homes if prices drop, people can actually afford the houses that they are buying. America has a student debt crisis too. [14] [15] Canada's housing investment as a percentage of GDP ratio peaked at 8. That our history of cheap housing was the true bubble and we’re now in the new reality, which a lot of the world is already in with regards to affordability. 2022 a Canada-wide 44% decline would just be a return to pre-pandemic affordability. Sure, and that's great and good and everything, but house prices and wages weren't nearly as far apart in the 80's/early 90's. It would cause more pain/suffering, thus costing the gov more socially/economically, than trying to prop it up indefinitely at the cost of rising wealth inequality (basically young people can’t afford freeholds as their first house anymore). lots reasons to keep coming to Canada even it’s becoming expensive for people that lived here most their lives. Using a scale in which a rating of over 5. Feb 14, 2024 路 Canada’s housing market is “starting to turn a corner,” the country’s national real estate association says. “I've analyzed housing bubbles in the developed world and Canada’s really got a unique one to its own,” Phillip Colmar, Managing Partner and Global Strategist at MRB Partners, told BNN Bloomberg last week. reReddit Canada’s real estate bubble has blown past the 90s bubble, and is going for the biggest of all time. . Let's say it's current worth is 50$ and it's real value after a company releases a product is 100$, a buzz might occur and everybody starts buying the stock, and people see it rising, and think it must be great, and so they buy some, and some people sell and Get the Reddit app Scan this QR code to download the app now The Canada housing bubble 2022. It took just about 2 years for the last housing price bubble to begin going down, but the current economic conditions are much, much different. That's more of a consideration further into 2023, but it's very different idea than the standard "fed pivot" wet dream, because it's talking about what would be likely to happen after a severe crash, similar to what happened to the US in 2008 after major banks were falling like dominos. 5% and will be 7% by spring, assuming at least 1. Stupid over-simplification. it to the housing bubble in Updates and news about Canada's housing crisis. Essentially, super bullish on Canadian housing and kind of bullish on Canadian condos. A bubble that does not pop is not a bubble. " [19] r/canadahousingbubble: Everything about the biggest RE bubble in Canadian history Updates and news about Canada's housing crisis. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The peak of the Canadian housing bubble was around April or May of 2022. Housing is sideways comparables are down volume and listings are extremely low. Immigrants aren't staying. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? It's not a housing bubble, it's an everything bubble (if it's a bubble at all). RIP Canada. 9% in 2022, [16] whereas the US, at the peak of their housing bubble, only reached 7% in 2006. 5 per cent and Montreal by 35 per cent. Home prices by metro in Canada. The housing bubble inflated because the fed lowered interest rates to near 0% and printed trillions of dollars which flowed right into the housing market, it doesn't matter that only a tiny fraction of the population was involved in buying a home, because more corporations now had incentive to buy real estate to make profit from rentals and flipping. The average price of a detached home in Toronto in 2003 was about $300K. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Find me an article from 2003 about Canada's "massive housing bubble. There is no housing and no opportunities. true. Prices of housing, either to rent or own can only rise so much if people’s incomes aren’t rising. This time is different. Welcome to Canada’s official subreddit! This is the place to engage on all things Canada. October sales were down by 49 per cent in Toronto from the same time a year ago. It's difficult to cause a crash in house prices when we've committed to a structural shortage in housing stock over the short to mid-term Updates and news about Canada's housing crisis. Most factors that drove the price bubble are reversed, and they will drive the ongoing market correction. Zandi won't call this a housing bubble. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The Most Splendid Housing Bubbles in Canada, May 2024: Prices Drop Further, -14. 4 million PRs by 2026 if they keep their goal of 500,000/year up to 2030 that's 3. Other large housing markets showed lower annual declines, with Vancouver declining by 45. But report author Enrique Martínez-García told Fortune magazine: “This might be a housing bubble. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Let’s take a look at some of the recent 2023 housing predictions as we close out 2022. Now all the houses there are around one million dollars and they just raised rates by about 3 X. Otherwise from an economists standpoint, it doesn’t really hold together or make good arguments considering economists generally love data and information based decisions, which this is written piece is basically the opposite of every indicator and recent housing data Dec 5, 2022 路 The Canadian housing bubble has popped, with prices down 14 per cent from the peak reached in the first quarter of the year. 6%. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? A lot of bear economists think that the fed is overshooting, and may be about to instigate a severe crash. So talking about bubbles, YES, Canada has a serious housing bubble and it has yet to pop but make no mistake, it will. Its either the housing crisis that leads into civil unrest, or the economic meltdown that will happen when the housing market collapses. 2023 is hard to predict. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Data points to this being far bigger than 2008 and far beyond housing. 1 is “severely unaffordable,” Toronto, with a score of 8. No. Not propping up the housing market leads to the other. 0 would have been low enough - and should have raised to 2. And now the 20s. Those are the only possible outcomes imo. Members Online Housing Market 馃槑馃彔馃搱馃搲 I know “bubble” stories always drives eyeballs to news sites, but in Canada, my question is when has the country not been in a housing bubble? They supposedly were in the 70s. Since the peak in April 2022, the index has dropped by 12. Prices will increase in 2022, flat in 2023, correct not crash in 2024 without a depression level event. reReddit: Top posts of October 2022. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Damn near zero percent it happens in 2022. 9 per cent. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Depending where you live and what your reference point is, it could be both! I live in Toronto and bought in late '21. At some point the story doesn’t get old, it just gets weird. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? China's housing bubble collapse could pop housing bubbles in other countries and cause a worldwide recession or another great depression. Canada needs to build mid-rise apartments for sale in cities. Nov 12, 2022 路 The decline in housing transactions is steeper than prices. ” Mr. Still think 2024 is more likely. 5% total interest rate increases by the BoC and Fed by spring. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Residential house price increased almost 50% in the past 3 years. ” Click power: Be careful what you wish for. Another reason Canada housing policy is not strong enough to make it affordable, prevent speculation investor, rental property investor, etc. People were foolish to think it would go on forever just because it lasted nearly 20 years supported by government pumping. There was no bubble in rural areas of Ontario. CoStar predicts that as multifamily rents continue to decrease for the fourth straight month in November, this will extend well into 2023 with a possible looming recession. This is a subreddit to discuss the housing crisis in Canada without banning posts for discussing supply *and* demand. But let's assume it's a bubble. 2026 we will be hosting FiFA world cup, so demand will be there for rental units for the tourist,. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? No one is missing anything by sitting out the housing market, not in 2011 and not in 2022. The Canadian housing bubble will be a victim of the fallout. And the 90s. Looking at home affordability — the ratio of mortgage payments to income — we estimate it will take another 25 per cent drop in home prices for affordability to return to its historic average. So we created an environment where the only way to get ahead was to leverage into hard assets; housing is safe and easy. News, People, Places, Events, Pictures, and Discussions on Toronto; Canada's Business and Financial capital, and the Provincial capital of Ontario. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Yeah, this guy is an absolute permabear in 2022 and a bit of a joke. He's happier and living a more fulfilling life there. Unlike in the FOMO-driven 2000s housing market, Zandi doesn't think speculation is driving our ongoing boom. The evidence suggests it looks like a housing bubble. Bubbles burst, and it will happen. " Toronto had a housing bubble pop in 1989 that led to a decline in housing prices until 1996. This startling revelation sheds light on the rapid escalation of housing costs in Canada compared to its southern neighbor. Just concede for a moment that today's lagging inflation metrics don't illustrate these effects yet. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Ed Pinto, director of the AEI Housing Center, said “2022 and 2023 present a great opportunity to sell, especially if you’re looking to become a renter or move to an area where you can get more home for the money. This lead to a period of negative real interest rates; we were paying people to take on mortgages. 6, beat out London Dec 5, 2022 路 The Canadian housing bubble has popped, with prices down 14 per cent from the peak reached in the first quarter of the year. That is probably keeping the housing crisis from reaching Canadian levels. According to the latest data from the Canadian Real Estate Association (CREA Updates and news about Canada's housing crisis. The inflation is a problem everywhere. We have institutional investors pouring into the rental market because there are no protections to keep them out. It is the prime time for real estate and all data suggests that no, this is not the case. 4% from Feb 2022 Peak, -2. Annual housing sales in Calgary dropped even less, at 14. Housing is complicated because it is both an asset and a consumption good, and what we'd like is to somehow include the consumption good aspect in the CPI, but not the asset aspect. Dec 16, 2024 路 Prices of condos in Canada fell 0. And probably sooner than you'd like. Canadians are unhappy and so are immigrants. 3% rate during the pandemic is now 7%, very possible will stay in 7-8% level for a few years. Government knows what it’s doing (believe it or not haha). The bubble burst in March 89 & prices fell by 30% over the next few months followed by stagnation for 10 years. When you look at the graph of Toronto housing prices, there was a pretty steady, almost linear increase until Apr 15, 2024 路 By February 2022, it had more than tripled, before easing somewhat to $719,400 in February 2024. This will take us back to February 2020 prices. Let's say everyone hears about a stock is gonna explode. We saw a recorded decrease of total households of ~128,000 in 2020. The government caused this housing bubble by trying to make it easier for Canadians to buy. 5 year fixed for insured mortgages are dropping and there are a lot more options for homes in the sub-$1M category now if you can afford the short term higher rates. It is the norm. The housing bubble is everywhere. The "bubble" just means that prices are valued higher than their real worth. National Bank (NBF) data shows affordability in Q3 2022 eroded to the worst level since the early 1980s. 5 Affordability is probably 30% worse in Canada by these numbers, I think the US has more cities with decent jobs and affordable housing, where as Canada were quite limited. So the bubble was much more pronounced back then. 56 votes, 50 comments. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? If the BOC's rate hikes in 2022 have a lag effect, which much smarter people than us argue is true, then their true effect on the broader economy won't be felt until 2023 roughly. I think Canada is in serious trouble. 5 million new PRs by 2030. After 10 years he's finally had enough of the bullshit and the living cost in Canada and went back to Thailand with his family. Updates and news about Canada's housing crisis. And the 10s. Aug 29, 2023 路 An international strategist is warning that Canada could be sitting on the largest housing bubble of all time. 9% year-over-year, the seventh month in a row of year-over-year declines, to a new three-year low of November 2021. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Canada is not at war and relatively safe for LGBTQ, religion, diversity etc. Reddit . Racism is still absolutely prohibited, but you are welcome to debate population growth, immigration rate, foreign home buyers, and the merits of single family homes or the green zone. In order for it to be a housing bubble, it would need both home price overvaluation and speculation in the market. wpnnegdlpaelispbpgeolunsbcagejixacfffxokhnerwgvetvlzwxiuf