Bank of Canada doesn’t have the tools to cool just the housing market: Economist

[@philshyu5248]

Not sure what the headline means - the Bank of Canada has the BEST tool for cooling the housing market. It's called interest rates. Raise it back to it's historical average of between 6% to 8% and the housing market will cool off REAL quick!!!

[@donm2067]

Never, ever, going to happen. Ever.

[@timber543]

@@donm2067 you're right don, not going to happen

[@acz88]

Sure if you’re ready for a deep recession in Canada.

[@BobSmith-iu3hx]

Low interest rates punish the savers and reward the debtors.

[@amanpreetsingh3877]

i agree

[@sherdonforbes3480]

FROM CANADIAN DOLLARS TO ZIMBABWE DOLLARS.

[@acz88]

Everyone will be millionaires and will be able to afford nothing.

[@felixfrost1564]

@@acz88 No worries, Im readying my arse incase i need to barter

[@phillip4742]

It's pretty simple only Canadian citizens living in Canada can buy a house. This should have been the law 20 years ago

[@brookemckay7349]

That would never work. There is to much money to be made from other investors. Helping Canadians is last for our government.

[@phillip4742]

True greed basically is why across the board our way of life is disappearing

[@wellyforpm]

That is the only acceptable way of cooling the market. Many other countries have similar laws. Keep the Chinese drug money out of canada.

[@patrykdrozd2637]

400,000 canadian citizens live in hong hong.

[@rohanind3]

Banks don't want the bubble to pop

[@kloosternator]

Government as well they have a deal that they will help with the down payment but they get 10% of the home value they are using this as a get rich quick quick scheme

[@westtoeastcoasterhomestead2057]

Nor the government. We sold and bought and gave the government 20k in transfer taxes.

[@acz88]

The government owns the bank of Canada.

[@sharinglungs3226]

@@kloosternator ha ha what? Government getting rich off housing? Government doesn’t want your money, it can print as much as it wants. Fthb scheme is so boomers don’t lose value in their homes and boost gdp because government doesn’t know to stimulate growth by actually encouraging investment and new industries.

[@kloosternator]

@@sharinglungs3226 what ever bud the thing I just explained was a deal the government offered me when buying my first home...

[@jmacfadyen9392]

The Canadian Government is devaluing out Canadian dollar. We are experiencing supply and demand, inflation, shortages for materials, cost of fuel/shipping going up and sky rocketing costs of materials costs.

[@wellyforpm]

every country is experiencing this.

[@JohnSmith-qj7hd]

Just going to sit back and watch the show, either housing will crash with our economy our our dollar will crash with our economy. They lent to cheap, for to long, with to easy money. They have crushed the productive part of the economy and now we are stuck. It’s just a matter of how long and how big the “correction” will be.

[@BobSmith-iu3hx]

Low interest rates punish the savers and reward the debtors.

[@karlroth7082]

Many people from Toronto are moving to London, Ontario where prices for new homes are 1/4,the price. London, Ontario is booming with many new towers, and homes being built.

[@tommywong3147]

Also in newbunswuck pei novascotia prices has shot up crazy

[@karlroth7082]

The vacancy tax will cause a run on condo sales downward. Prices will only drop when interest rates start to rise.

[@stevenobinator2229]

I HOPE YOU ARE RIGHT, THESE PRICES ARE DESTROYING OUR ECONOMY, EVERY PENNY IS STUCK IN HOUSING

[@BobSmith-iu3hx]

Low interest rates punish the savers and reward the debtors.

[@alexkent1151]

Never regretted moving from the bank to crypto currency, amidst the dip 🙂

[@wellyforpm]

They don't have the authority to do it either. Housing prices are what they are, if Canada wants to implement laws that outlaw ownership for noncitizens like places like Thailand and others do, that's fine, but artificially deflating the market is not an option

[@swatibhagat5676]

The problem is are people going to have their jobs still? What about hyperinflation? Housing affordability is not just based on interest rates. Plus your house gains are paper wealth till you cash out. Housing bubble looks more of a possibility.

[@hyun8519]

wow this one is the real rocket scientist

[@gibandruski6744]

Well we know the banks can’t lose........ever.

[@riasat001]

its funny no one talks about supply issue.

[@JJs_playground]

And what will happen to home prices when the 1.2 million, new, immigrants come flooding in (over the next 3 years) to Canada? Don't expect house prices to drop anytime soon. Probably not for another 3 to 5 years.

[@acz88]

You’re right. There are a lot of new condos being built for that demand but a lot of people want detached low rise homes.

[@pamlatimer4950]

1% on vacant properties is nothing. Should have been 5 to 10% to do anything.

[@nickgreek6449]

Just a bubble..Bigger than any before..But like all of them it will burst..Many people will be screwed for life..Some will profit for life..Crisis = opportunity..But you have to be naive if you think that these prices are sustainable or even reasonable. Homes prices should be half of what they are today..

[@MR-eo9pp]

What’s the point of going back to work if you want 80% of income in housing? Unfortunately, BOC actions will end very, very badly.

[@felixfrost1564]

Or its because people didn't pay rent for a year and saved up enough for a down payment

[@worldwide6626]

Build high apartments. More supply=less demand

[@ln5536]

People want houses and land though

[@amanpreetsingh3877]

tax evasion surrounding real estate is a big issue. In GTA rent from illegal basements is gross and all in cash. One bed room illegal basement gives landlord 1300 dollars tax free and no one cares. It is not simply demand supply. It is policy paralysis, greedy flippers and unregulated unsafe cash cow basements. Realtors want their hefty commission so they do not care about average canadian. Black money from India pakistan mostly corruption money is eating up a good life for average canadian. As a country we need to constitute an inquiry commission to prevent going canadians homeless. Do u think that policeman, psw or grocery workers afford a place? It is big scam where ppl r getting laid off and house prices are rising

[@acz88]

Policemen are paid well and they’ll be fine. Grocery workers aren’t suppose to make high income. Not everyone suppose to be rich and all live in nice house. That 20 year old bagging grocery isn’t entitled to home ownership unlike the 40 year old cop that’s doing a dangerous job. I feel like people like you are so distorted from reality it makes your argument void. You think illegal rentals, tax evasions, and black money from your home country is an issue? It is, but look at the bigger picture. Canada still has one of the highest home ownership rates in the world unlike in India people still live in shacks. If these greedy flippers weren’t around remodeling and renovating homes we be living in shacks too.

[@amanpreetsingh3877]

@@acz88 look wht havoc ur flipper had done. Policemen can't purchase house in gta. How can u support tax evasion? This is insane. Ppl like u r paid trollers of black money mafia who are doing corruption back home and killing future here must be held accountable

[@wellyforpm]

depends on the landlord, many declare their taxes on illegal suites.

[@amanpreetsingh3877]

@@wellyforpm Why we give options to landlord hide money from illegal basement? Why we allow ppl to stay in illegal basements? Do we want to convert Canada a 3rd word nation? Trust me we will be doomed if we does not stop this non sense.

[@hyun8519]

leave it to bloomster to spin this one out the spinters

[@eMPaNaH]

Be afraid when everyone is greedy

[@tommywong3147]

How bout 100% tax on capital gains? Is that a tool? Lol give me a break.

[@francisbael9334]

50% tax of foreign and corporate investors

[@MrBlakman1988]

Taxing Canadians is not a reasons alternative and certainly not via capital gain taxes

[@acz88]

@@MrBlakman1988 people with the least idea of how things work always turn to the tax solution as if no one else thought of that idea already

[@acz88]

Why would anyone sell their home if they’re taxed 100% of their gains? Very easy way to end housing supply completely. Cute idea but go back to school and try again in few more years.

[@tommywong3147]

@@acz88 they sell cause they need their capital back to invest in something that's not taxed 100% duh...

[@haudoan3328]

Until now , after a lot discussion about economy recovery and pandemic supporting money, Who still support to increase the interest rate for cooling down housing market are idiod and jealous. Increase interest rate only make the banks and bankers much richer and most of the mortgage borrowers ( they are middle and low income working hard people in our country) much poorer. House price are increasing because many reasons, but the major reason is huge demand for long time in limited supply, secondly tgecother major reason is much increasing of remote working situation... Increase interest rate only make short term of cooling down house market and make the banks and bankers much richer as well as very harmful, cruel to mortgage borrowers.

[@jilumijilum803]

Denial phase

[@kathyfreeman9596]

Great update glad to hear rates will stay low for a while