I agree with this. I think they also need to focus on educating people from a young age about the benefits of living in different parts of the country. We need to spread out the population across the entire land. If you ever drive from one side of the country to the other and see all the vast expanses of empty land, it really does make the income to housing costs ratios in Toronto and Vancouver seem absurd. I get it everyone wants to live there because there are jobs and they are metropolitan cities but this slowly needs to change.
Thanks Gotcha and Nine_Ender for the conversation. Both informative that I've heard before on Canadian TV, discussions with friends and such the past year. Heck even when I was in the hospital last fall and out of a coma...the cleaning guy that came every morning to my room would talk about some "pending housing apocalypse". I see more people in my area with two incomes (mom & dad), more people renting out their basement the past 5 years than any other period. I remember when my kids first started going to school...a lot of moms would show up to pick up their kids but now I see less moms and more school buses as if now the moms are working too. There's more people talking about their finances, costs and affordability. Less people in the banks withdrawing cash at the ATM's. I see more people in the stores using credit cards instead of cash. Heck, even my travel agent told me less people from Quebec are buying 2nd homes in Florida...its a tradition for retires to do such...they are called snowbirds. Something seems like its going to pop or burst and I strongly believe the housing market will get hit hard and then I'm going to sit down...drink a bottle of wine...then say WTF !
Glad to see we've got some "the Toronto market will never go down" type posts - which pretty much ensures it's going to happen.
News like this is probably why: https://www.bloomberg.com/news/arti...ummets-91-erasing-4-2-billion-in-market-value https://www.ft.com/content/2a62b8f2-134e-11e7-b0c1-37e417ee6c76 So where did the money go? But "rich foreigners" is a new phenomenon. Yet people are generally talking as if all asians are the same. Just because you have an asian family moving into your neighborhood, it doesn't mean they're that kind of rich, nor that they're involved in that kind of shadiness, nor share in the same kind of history. That's straight up racial stereotyping. This ultra rich foreign buyer thing is a new phenomenon of the past 10 years or so that coincides with the advent of wealth in China/Korea/etc. And with that comes people trying to 'secure' their wealth by taking it out of their country (which for China has controls over capital outflows) or straight up hiding ill gotten gains. But just because you're asian or an immigrant, it doesn't mean you fall into that category. The problem is probably mostly confined to the 'new' immigrants of the past 10 or so years. And the reality is this, asian immigrants are often wealthy elites. Only they could afford to and have the opportunity to leave. Unlike immigrants from other areas of the world or even from a historical perspective where European immigrants from the post-war era have often been the poor looking for new opportunities abroad. And so, asian immigrants being elites from their country, obviously probably have more money than the 'locals' that are not elites of that country when they move into the neighborhood. Thus the luxury cars and the buying of houses in cash, etc.
1 of the reasons I went into tech from finance is that I saw the writing on the wall re: automation and wage stagnation. Throw in cost of living and remote work and it's not looking good for "communities" in the traditional sense to be built. I can get double the quality of life in many other cities in the developing world. The middle class dream is dead, either you are a high income earner or a wage slave these days.
You seem confused. Saying there is no bubble and an imminent crash isn't going to happen does not mean the "market will never go down". However, I don't remember the market going down even for one year at any point since 1991. That's a 26 year bull market with very little down size risk the vast majority of that. You can't deny that reality.
Yes, this time, in Canada it is different, yes Canada is different from the US so there will be no bubble in Canada, you see our bankers are different.... Just kidding.
Big down day for the marginal Canadian financials on Thursday. HCG down 8.63%, EQB down 8.30%, MIC down 6.00%. .
BMO Bundles Uninsured Mortgages in a Canadian Bond First “This is a really unique deal in the Canadian market,” Richard Hunt, an analyst at Moody’s Investors Service who rated the deal, said in an interview. “Given the pent-up demand that we think is out there on the part of banks and non-banks to have a vehicle to fund their residential mortgages, to have an RMBS market, we think this could be a significant transaction.” https://www.bloomberg.com/news/arti...-offer-mbs-as-canada-shrinks-mortgage-support Stop me if you've heard this one...
2 for 1 deal today. First, the Home Capital charges: http://www.osc.gov.on.ca/en/Proceedings_enr_20170419_home-capital.htm http://www.osc.gov.on.ca/en/Proceedings_soa_20170419_home-capital.htm and second, the 15% foreign buyer tax in Ontario: http://www.zerohedge.com/news/2017-...-housing-bubble-launches-15-foreign-buyer-tax .