BUYERS are LIARS (some of them). 2023 Canadian Real Estate Market

The Data Shows, best case scenario is break even if you purchased a home in the last 2 years and 9 months in Canada. Canada's rate of homeownership is declining fast, well below the OECD average.

[@terryevp4084]

Jon , Thanks so very much for telling the real honest truth. You are 100% correct , we only have a housing industry and no other industries. Honest families will never own a house in this country to raise a family.

[@jonflynn]

Thanks for the support

[@jackalj8571]

Let it burn.

[@jonflynn]

yep

[@bayindir06]

Thanks for telling the truth. Real estate valuation is really out of line. Simply people do not have income levels to support these crazy prices.

[@jonflynn]

It's slowly changing but has a long way to go

[@saga-pt9nd]

The idea that income levels “should” be correlated directly to house prices is incorrect and oversimplified. People who buy more expensive houses don’t pay for them by higher income. They pay for them by the equity that they have built in their previous house. Toronto is gentrifying into a global city and house prices reflect that. There is no major vibrant global city with cheap houses. This even includes major cities in developing countries such as Delhi, Rio, Tehran, etc. with prices not too far off from Toronto. I believe your analysis is oversimplified and misleading, and ignores the elephant in the room of supply/demand which ultimately trumps other factors in determining price of any commodity

[@user-ud6nc7xf7f]

@@saga-pt9nd third world immigrants emigrate to Canada. Toronto will become a bigger hellhole than it already is.

[@RageandSig]

Honest information backed by facts and logic. It's why I keep coming back, thanks again Jon!!!!!

[@jonflynn]

Thanks

[@ank337]

If he was a politician he’s is Premier material for Ontario , unfortunately we don’t elect smart honest people to office 🤦‍♂️ waiting every week for his real estate update .

[@svc2461]

The bottoms you're referring to are not real bottoms. Near future prices will breach these levels by miles and prices will go down to 2012 levels. This is when the Canadian real estate will look logical and sustainable. No immigration will NOT keep prices up. Present immigration is a very complex piece and there are many factors due to which recent waves will not push demand up.

[@mahanr1272]

Canada is sitting on the largest housing bubble in the world and it will definitely burst soon when the Bank of Canada hike rates a few more times.

[@DTrent-uy1wl]

KaBOOM

[@janiceho6034]

The housing bubble has BevMo talked about it in past 10 years or more, never happen .

[@DTrent-uy1wl]

@@janiceho6034 you sound really smart

[@roseoverdose6451]

girl, if only it was that easy to predict...

[@sevkigetsufit]

Isn't it already bursting? 40% down some of the areas. My area is Toronto Riverside. Already pre-pandemic prices here

[@NovaIsland5504]

When corporations are allowed buy and to use family homes as an investment/business model. We have an issue.😊

[@jonflynn]

yep

[@ank337]

Plus all the hanky lanky money From every corner of the earth coming in without any questions .

[@weaselsoup3105]

I've been looking since June but it's been pretty bleak. Qualified for just under 400 k but that buys you nothing in this market. Now there is just nothing on the market except houses priced above 600k that haven't sold all summer.

[@jonflynn]

It’s a sad situation, $400k should get you a decent average house in Canada

[@joeycmore]

Forgive me, I don't want to sound like I'm blaming the victim, I have children looking into buying a home with trepidation at this time. I will point out that some of the reasons for low ownership and high prices comes down to 2 hardly mentioned factors. 1) What passed for a starter home in 1960, compared to today is night and day. Few 1960s homes had full garages, where a carport would do. It was fancy if there was more than a single plug per room. Kitchens were basic with no granite, no pot lights, no built in anything and zero under-mounted mood lighting. Basements were unfinished, often with no plumbing rough-in. And one 3 piece bathroom (can you imagine the horror?) for the family. (2) We need to acknowledge that the breakdown of the nuclear family (for better or worse) has led to innumerable people with decent wages that own their own home and occupy it with 1, maybe 2 people. This drives the need for housing up; supply and demand economics. Yes, the provincial and federal governments have dropped the ball. Yes, corporate profiteering have suppressed real wages. But maybe, just maybe we want to return to a more basic form of housing which doesn't involve designer kitchens and lifestyle accents. Let's try simple structures with rooves and doors and beds to get into the game.

[@jonflynn]

Great point and idea. The argument is that land is too expensive to justify building smaller homes. In the 60’s many were gifted the land for $1

[@joeycmore]

@jonflynn I'm a big fan. Keep up the great work. As for land too valuable to build smaller homes arguments; sounds circular to me, because if few can afford big homes to start... Furthermore, my point was not only about size, but all the amenities society seems to take for granted as standard now, which adds to the cost. Personally, I favour freehold townhouse development. Condos get managed too expensive as fees spiral. Pretty good efficiency of land use can be had with townhouses, whether 5 or 500.

[@seannelson3006]

Great points Joey. I agree, all the single people these days that aren’t within the nuclear family structure will have a demand for more housing. The amount of single people that require homes compared to families is astronomical as divorce rates are high, young people aren’t marrying anymore in my mellenial generation. It’s a stat people don’t mention

[@rjkrjk8344]

In some places it's a $100k just in fees and permits before a shovel hits the ground.

[@joeycmore]

@rjkrjk8344 often in bigger projects those fees are reduced per unit for developers. No matter, it's an important point.

[@ElohorB]

Thank you always for your honest takes!

[@jonflynn]

No problem, thanks for watching

[@kevinn1158]

Our house is in Downtown Toronto. Our semi is 2300 sq ft. We've lived here for 20 yrs. I've seen almost no "family" type construction in the city since we've lived here. Hundreds of very tall condo buildings with thousands and thousands of tiny units and no low rise family units. eg 4-8 storey structures with 1500-2500 sq ft units. This is the only way to properly develop the main part of the city with families. You can't stuff a family of 4 into 700 sq ft. And all of the so called progressive councillors in the downtown, have spent 25 yrs blocking this kind of development. It's mind boggling.

[@TheNewMediaoftheDawn]

Both sides of the isle like huge horrible condos, big money. Doug Ford is heavily in the pockets of those developers too.

[@duckfield2520]

All part of the destruction of the family unit.

[@kevinn1158]

@@TheNewMediaoftheDawn Well, it's been going on for over 2 decades so as much as I don't like the Doug, it's not exactly his fault. (having said this, I'm wondering why his involvement in that shady Greenbelt situation hasn't triggered an election). The city council of Toronto is and has been living in an alternate universe for a very long time. Their approach to development is shockingly regressive. You can't even replace a dingy old dump without the city slapping you with a 145k development fee. Then a land transfer tax. Then they will inevitably drag the process out for yrs costing the property owner tens of thousands in interest and legal fees. I know of a small developer who owned a property on a Main Street in Layton's ward and the ancient height restriction of 39' was fought tooth and nail by the local NIMBYs and Layton was in there helping the community at every step. The developer's proposal was 6 storeys.... Numbskulls councillor councillors blocked him. Meanwhile, the city of Toronto stream rolled through 22 storeys just west of Spadina because they promised to build 350 townhouses for the pubic housing whiners. These councillors have the world upside down. Public housing residents get 2 million dollar townhouses and everybody else gets the middle finger.

[@quixomega]

They have, they're just out in the suburbs. You can't really build on land that's already occupied and there is no way to make money by knocking down low rise to build low rise. As long as this is a "free market", we're slaves to market forces

[@ILOVESTEAK10]

No money for developers creating more than one bedroom.

[@m.b5777]

One of the first people to leave Canada when a recession hits is newer immigrants. They already have the passport of another country. Housing speculators should not bet on immigration. For example look at BC's population growth from 1986 to 1996. It was 30%. However real estate continued its decline until 2001.

[@jonflynn]

Thanks for the info

[@mdnazmulahsan1887]

Great Job. Thanks.

[@jonflynn]

Thanks for watching

[@aiqueenla2786]

Thanks for info Jon, Canada used to be a great country, the gov't needs to take action immediately on the housing, house is a basic need for human being, rental housing should be available for rental companies, and individual should be banned, because those individuals purchased the property, they called it rental property but their mind may look to sell the property once there is a significant gain. I personally don't like renting from individual home owner but rather from rental corporation.

[@Carolinapetroska]

The government already took a big and stupid decision by banning foreign buyers. Now Canadian real estate market is cursed for many years....

[@althunder4269]

Another great post, thanks.

[@jonflynn]

thanks

[@247559]

Great info and great backgrounds as well.

[@jonflynn]

Thanks

[@derektomaszewski582]

Thanks for the regular market updates.

[@jonflynn]

No problem

[@c00per69]

Thanks for the update Jon. This next few years should be interesting.

[@jonflynn]

Thanks for the comment

[@hagbard72]

Our landlord three years ago told us he needed the house so he and his wife could downsize for retirement. We left after agreeing to a move out date. Three months later the house is gone (nice waterfront 50s house). A year after that a huge house. My agent told me they sold it shortly after we left. So, the landlord lied to us to get us out. We'd been there just over ten years.

[@shaunstar4105]

You can take them to court

[@jonflynn]

yes, happens all the time

[@Brian-dg3gh]

@@shaunstar4105not really, they can evict in order to sell, they just did in a sneaky way to avoid the risk of a complicated sale. Would be worse if they had rented to new tenants.

[@JonathanRogler]

@@Brian-dg3ghno they can’t, not in Ontario anyway. Evicting in bad faith (which this would be) would mean huge fines for the scumlord and a big pay day for the tenant.

[@Brian-dg3gh]

@@JonathanRogler they can sell and evict, they just did it out of order. This is really only a big deal if as a tenant you planned on being difficult in leaving.

[@igor-Light111]

Thank you, Jon It looks like more and more pressure comes to the market towards 2024

[@jonflynn]

Yes, downward pressure on prices for sure

[@mikedennington8856]

I bought a house in NS July 2020 for $120k, current value is $340k. So I have done ok so far and the rates don't really affect the lower values of property as most buyers in this area are cash buyers. There is a shortage of property in the Northern NS zone.

[@jonflynn]

Thanks for sharing

[@dtownssqwe]

Jon in your break-even comment do you consider all the mortgage interest that is being paid out and lost to the banks since 2020 as rates increase. If someone takes out a 500K loan today @6.09% 3 year fixed they would be tossing away 30K a year to the bank. The damage would be slightly less for those who bought in 2020 since rates were lower than but still these people would be losing on the decline of their house value plus any interest paid to the bank.

[@markz1013]

Exactly

[@jonflynn]

I just kept it simple and didn't include principal gained or money lost to interest. I didn't included maintenance or upgrades either, which would really put many in a hole.

[@TheNewMediaoftheDawn]

Good info! Home ownership rates dropping is bad news for the middle class, because it could mean corporate investors are buying up stock, like the US. I’m less judgmental of smaller investors though. If finances line up, hoping to buy a fixer upper cottage or land in Lakeland’s, pretty sure that market is down too, hopefully more soon😄

[@jonflynn]

Thanks for the comment

[@Keepasking123]

Yes, the prices are coming down but the interest rates are higher. So doesn’t that mean we will be paying more for a house long term than if we had bought when interest rates were lower? (We’ve been trying for 4 yrs to get into the market)

[@jonflynn]

I'd prefer to pay higher interest rates in the short to medium term that higher house price. You date the payment (and rates), you marry the price.

[@Keepasking123]

@@jonflynn good point. Thanks!

[@ivannightly1919]

Not that id want rentals popping up either but truth is you sell your house the new owner does what he does just like if you sold your fav car and it went to a demolish derbie no one has to tell you what they intend to do

[@jonflynn]

I agree but what's the point of lying to the seller when you don't have to?

[@lemontube1000]

i think the house bubble is held by government by bringing more new permanent residents then building new units , i don't blame the immigration that is a good thing for the country, I blame the construction industry that is a monopoly again , like our Internet Service providers , Cell phone providers here is some stats from StatCan Total Housing completions 2011-2022 : 2,324,438 Units Total New permanent residents 2011-2022 : 3,587,760 that is 54% more new residents then new units , were is the Units for Natural growth ,.. kids do grow up??

[@jonflynn]

Thanks for the comment

[@jimbentein6337]

Another great video.

[@jonflynn]

I appreciate that

[@abu4729]

why is the comparison being done with average national price? average of $1.1m in GVA with average of $340k in Winnipeg would make a national average, per se, $700,000. With huge differences between the "greater areas" (i.e. Toronto, Vancouver) versus small towns, comparing them to individual buying points are moot. Obviously taking the national average of 600k, a buyer in greater Toronto/Vancouver area would dive off a cliff because it would seem he over paid by 80% while a buyer in Saskatoon would jump with joy because it would seem he got a discount of 80%! Such "national average" comparison doesn't mean anything other than click bait. Averages should be compared at city level with other properties in the same city (even then it would be somewhat impractical because there would be unfair differences due to neighbourhoods, schools, hospitals, crime, etc i.e., due to, as realtors like to say, "location, location, location".

[@ank337]

You sir are as good as gold ! Telling the truth ! I live in the GTA and hate what’s going on here 😢 and mind it I have been a home owner since 2005 and still hate the commoditization of single family home, govt has done Jack shit to make it better, all the drug money from all over the world flowing in uninterrupted .

[@jonflynn]

Thanks for the support and great comment

[@bgd360]

Why are land transfer fees part of your selling calculations? Assuming a concurrent purchase?

[@jonflynn]

If you bought in the last 2 years 9 months you would of paid land transfer tax, not a selling fee but an overall expense of owning the home. Should have been based off the $612,000 purchase price but close enough to get the point across

[@bgd360]

@@jonflynn Ah, thank you.

[@ericparadis7882]

Doesn't Mexico have a ban on Foreign home ownership? You have to have a local help buy a home.... Which may explain why home ownership there hasn't been impaired as it has in Canada.

[@yourmomisyourdad]

You can buy homes in Mexico. You just can't own the land out-right if you are withing 50km of the beach. In that case you lease the land essentially. Central mexico you can own both the home and the land though.

[@eMPaNaH]

nope, you can buy homes in mexico, anyone can, the problem has never been that...Quebec has way less affordability problems and you can also buy as a foreigner

[@GabeBridges]

How do you think the nearly 900k new foreign students per year will impact the market Jon? Do you think there will be more scenarios like what happened on your street and that will in turn help to lower inventory and prop up prices? I guess investors may be able to at least breakeven on a $700k home with 6 students grossing $6k/mo.

[@jonflynn]

They will need somewhere to live, but what happens when they don't come anymore because the word spreads about how expensive it is here.

[@darrensmith6782]

They pay $1100 a month and usually stay in home stays. They contribute to the schools as well. I think university students stay on campus or rent places so they have an impact.

[@scottblackburn2969]

In the movie idiocracy the only industry left was Gatorade.

[@jonflynn]

Love that movie

[@MrBojo-jv4qq]

How much of that home ownership is multi-unit investor owned?

[@jonflynn]

don't know

[@deadfullyawesome]

Hey John, I’ve been watching for a while and I had a question It’s incredibly demoralizing to see Ontario home ownership at 11.4percent under the age of 34 I’m 27 I think I can never own a house in this country with the way things have gone. What would your advice be for those 30 and under looking to purchase their first homes?

[@golftownpro999]

Be creative... Roommates, split on a house with friends, wait for the bottom, start a business and live in the business, alternative living temporarily to save money etc

[@susanstewart1402]

If you are so fortunate as to have a good relationship, talk to the Bank of M&D. Let them know that if they would like to have grandchildren, they need to help you out. Then wait for the next downturn and hope that you keep your job. You will need stability to prove to the Bank of M&D that you are reliable.

[@deadfullyawesome]

@@susanstewart1402 I Wish Dave Ramsey’s advice was always solid advice but unfortunately when your parents are broke and incompetent with money you can’t really go to M&D for money, and my grandparents aren’t much better I’m not one to be a victim I’m just stating why that wouldn’t work for me I make 80k after tax a year and I saved up 120k I’m trying not to repeat the same stupidity

[@jonflynn]

hang in there and wait for the times to change, it will happen. The market always cycles

[@KM-sr9cc]

The rate 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 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 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) - Decrease 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 the bitter reality, once and for all. Welcome to New Reality and the New World Order!

[@supermash1]

I don't know about other cities in Canada but thank god the municipal governments in Victoria are throwing everything they have at the bike lane crisis. We are building bike lanes hand-over-fist spending millions of dollars every year solving this harrowing crisis. And we are at the forefront of the political correctness crisis as well with statues of nasty colonial leaders being taken down, rainbow coloured lgbtq flags being flown at city hall and elsewhere, rainbow coloured cross-walks being painted, with pronoun use being carefully controlled, so that this dire situation is not left unaddressed. Along with the provincial (and thankfully federal governments), we are ensuring underpaid public sector employees of all kinds get exceptionally good and constantly increasing benefits and especially pensions, paid sick days, and early retirements . We are rapidly increasing the numbers of bureaucrats so that any private initiative is squashed and fed back into the public sector which is so much more efficient overall while being much more sensitive to gender, racial, and other "identity" issues. Provincially we are ensuring that foreign trained health professionals' credentials are not recognized because we do not want to swamp our health care system with too many doctors, nurses, or other critically skilled health professionals. Finally, at the federal level our astonishingly competent government is allowing unbelievably high levels of immigration, foreign students, temporary foreign workers, and refugees, while turning a blind eye to the all-important illegal immigration numbers. All so that our glorious nation can continue to grow and grow and grow, using up all arable land for much more important urban uses. Meanwhile spending on infrastructure is kept to a bare minimum so that more important identity issues can be funded, and politically correct public broadcasters can be kept in the black. I can only say that I couldn't be more proud to be a Victorian, a British Columbian, and a Canadian at this gloriously prosperous and optimistic moment in our history. We are constantly becoming more and more woke. I believe we have evolved to a near perfect society and must continue to be ever vigilant lest we slip back into the ways of our dark and ignoble past!

[@jonflynn]

Thanks for the detailed comment. Most of the decision makers are just blindly following what they think is right without thinking about it. They feels the views and values of a few represent the silent majority. It’s also a good way to keep our attention focused elsewhere instead of the real issues affecting Canadians like food and shelter.

[@IvansBikesBmws]

Good guess on a condominium rental percentage. It is more like 80% rather than 41% . Than you got rbnb.

[@jonflynn]

true.

[@Carolinapetroska]

Canadian real estate is over now. We are entering a declining cycle probably for 8 to 10 years. No point to buy anymore.

[@jonflynn]

I agree, will be a long road down

[@decadence8473]

I am proudly 23rd highest in a contest against 23 rivals.

[@raze5346]

Good thing you dont need to pay anything when you move with the RCMP 😊

[@jonflynn]

yep

[@elim7228]

Typo in the chart: should say Dec 2021

[@jonflynn]

Pretty sure it was pointed at dec 2020

[@Ian-of9oi]

The slightly lower home ownership rate could be because of all the immigration. People might be saving for a home.

[@saga-pt9nd]

Be fearful when others are greedy, and be greedy when others are fearful. Warren Buffet Hint: right now, others are fearful

[@jonflynn]

I’d say they’re somewhere in between but still more greed than fear

[@trevors1410]

We now need trailer parks to accommodate all those on government assistance

[@jonflynn]

Even they’re too expensive

[@hagbard72]

Going for the Nicholas Cage look?

[@jonflynn]

haha, figure I'd mix it up a bit

[@justinaldrich1719]

Turning homes into rentals is a good thing when people are living on the streets. option 1 see people living on the street outside your home or have somewhere for them to go.

[@marksmith6787]

Bahahahha. Or make it very uncomfortable for them to be there. Pretty simple ways to do that. Have to make it so they would rather be elsewhere.

[@jonflynn]

I don't know about that

[@saga-pt9nd]

To people who think a catastrophic drop in house prices is coming: if that happened, the municipalities that depend on the property tax income will go broke, the banks who own the mortgages will go bankrupt and the country will go bankrupt. 10-20% up and down is normal and happens all the time but a million dollar house in a major city like Toronto will never become $500,000. Also, the argument that “now you need an income of X to afford a house, how is that possible” which keeps getting made is false. This is not how it works. People who already own homes, benefit from appreciation of their home value and use that equity to upsize (people don’t put 20% down on a $3M house and pay the rest of it mortgage through income - people buy a house for a million, when it goes to $2M, get the equity out and upsize to a $3M house). When prices were going up 40% a year, the people who thought it will keep going up 40% a year were wrong, and similarly now that prices are 20% down, people who think prices will keep dropping 20% every year are wrong. Toronto is in the midst of transitioning from a “relatively important city” to a true global city, the likes of London, Paris and New York. One of the byproducts of that is significant appreciation in property values. The rich get richer, money brings money, and so on. Life is not fair and has no obligation to us to be fair.

[@trevoroertel1306]

I guess we’ll see how it all plays out, you sound like you’ve got a lot to lose if values plummet… thus your point of view.

[@saga-pt9nd]

I try not to make emotional and wishful thinking statements. I believe if you bring a million people in the country every year and 60% of them go to Toronto area and you only build houses for a quarter of them every year, competition is going to increase which puts upward pressure on prices. At the current time, because of high interest rates this competition has been transferred to the rental market instead. There will be a point that upward pressure on rents and subsequent rent increases become high enough that (1) investors can cover their costs thanks to higher rents they collect and (2) purchase will become more economical vs rent, and both of these will create upside pressure on property values. Also overnight interest rates will probably go to 3% range soon which will also encourage buyers. I think we can have another +/-10% swing in prices in short term (6-12 months) but in 2-5 year timeframe prices will go up. I also don’t think the 7% historic price appreciation over the past 40 years is sustainable and probably will moderate to average 2-3% annual appreciation for the foreseeable future.

[@jonflynn]

Thanks for giving us hope

[@trevoroertel1306]

You are delusional if you think that landlords can simply keep raising the rent prices to whatever number works for them. Rents as well as home prices have to be tethered to the income level of the people that live, if those two diverge you what is revered to as a bubble, which will always eventually pop. Good luck to you and your finances in the year ahead of us.

[@MentionBiscuit]

@@trevoroertel1306well said!! These people thing immigrants are their personal walking retirement plans here to pay their mortgages down to zero. The grift is coming to an end I recommend landlords begin to seek employment.

[@ericmaher4756]

23rd 😝

[@jonflynn]

thanks for the comment

[@ronjcharity]

Poorly managed, quality of leadership isn’t good

[@jonflynn]

I agree

[@maximusfuscus]

Most people like it as it is, keep voting left. My only explanation, otherwise it’s a madhouse.

[@jonflynn]

makes sense

[@surprisek3918]

Why would you assume home ownership is a positive? Owning a home is a TERRIBLE investment. If anyone started with a down payment and paid over their mortgage as a traditional person would, you clearly don't understand investing. You will have earned next to nothing while an index fund would provide much better returns over that same period of time. People have been fed a line that the white picket fence is the "American dream"

[@marksmith6787]

I surly want a home to live in, this makes my life a lot less stressful and can dictate my own decisions. My family and I Don’t have to think about landlords raising prices, moving/selling etc. I like to dictate my own decisions. And just do you know my house has increased 650000 in the last 16 years. And I don’t have to rent. If I need to put money into a investment like the S&P500 I can use equity to do that :).

[@GabeBridges]

Context is important here. It depends on which market you choose to rent vs buy in and on a myriad of other factors based on the individual. If you bought a home in the GTA 20yrs ago using a 20% downpayment, you would have crushed the S&P. Why? Because of LEVERAGE. Most people have mortgages. And so, in the Toronto market, that bet would have paid off. What about in Michigan or a place with no population growth? Perhaps renting should be at least a consideration. Also your argument only speaks to the investment side of the equation. But, for most people, their homes offer peace of mind, security of tenancy, a place to raise their families, etc..

[@MentionBiscuit]

I think that’s partially OPs point- your equity today isn’t necessarily your equity tomorrow. You’re banking on ever increasing appreciation and maybe rightly so! I don’t think it will ever revert back to purchase price but then again maybe we’ve hit a ceiling for lunacy in this country - who knows 😂

[@jonflynn]

when homes are affordable and you can pay off in 10-15 years and have a nice place to truly call your own I would say owning is much better. The goal is not to have a mortgage forever.

[@user-oz4nn3jw8p]

With 82% above mRNA Vaccination rate in Canada, we will have lots of empty houses 🤭if you know what I mean.😏

[@milhouse8166]

I hope you're wrong, but I'm kind of on the fence. It would mean more homes and less idiots 👍

[@stevendefehr4393]

😂😂 good one !

[@jonflynn]

Yep and an aging population on top of that.

[@Bleebleeblahblahblah]

This amuses you? Pretty scummy remark.

[@user-oz4nn3jw8p]

Dummy sheep amuse me.@@Bleebleeblahblahblah

[@bc5810]

I think it's sad that provincial governments don't work with colleges and universities to build dedicated student housing. That would solve a lot of housing issues in our nation.

[@gabrielrios-bj5gn]

The sky is falling.

[@jonflynn]

yep.

[@GumballGarage]

Canadian Real Estate Fundamentals - 100% Ponzi

[@jonflynn]

Yep

[@petera155]

Bye bye Canada.......

[@jonflynn]

Yep

[@rosatipicks]

John is the classic perma bear who likes making viral vids. As I’ve said before, keep it simple. Don’t pay attention to any of these KZbinrs like John who will scare you from ever buying. Buy when you can afford. Housing hasn’t really dropped. Prices maybe down 20% from peak but it’s still just expensive because of rates. And most decreases are on properties over a mill. John hasn’t been right with any prediction lol. It will be 2025 and still predicting a crash. Do people honestly think homes will be cheaper in 2-3 years? Our population continues to grow at crazy rates and it’s expensive and slow to build homes. Economics don’t favour a crash. Rates are the only thing keeping prices at bay. As soon as the drop over the next year, it will tick up again. John will have to be held accountable when he’s wrong. But when you can afford and absorb costs. Stop waiting for a crash. There hasn’t been one lol.

[@101academics]

Houses can't keep going up forever, at least not with resets. Higher house prices equal higher rentals, which in turn creates more homeless people and more crime. I hope you see the domino effect here. If the government doesn't want a revolution down the road, they better take care of this mess because housing has never been higher and more on people's minds than now.

[@rosatipicks]

@@101academics housing long term has always gone up. So as I said, you buy when you can afford and hold it. If you’re planning on being in the home atleast 5 years, you will be fine.

[@101academics]

@rosatipicks actually no. Homes have exploded in price the last few years. It has never been this bad in regards to unaffordability. Also, I said houses can't keep going up forever without resets. There have always been resets where house prices go down drastically and then hold there for years. Canada hasn't had one in a long time and so whether we like it or not it's coming. Now whether it comes tomorrow or 10 years from now that's anyone's guess.

[@rosatipicks]

@@101academics and if happens in 10 years it still will be more expensive than today my friend. Again long term you will build equity. I’m not talking about 1-3 years. Houses exploding was no coincidence. Prices will be higher than today in 10 years so why wait 10 years if you can buy now?

[@101academics]

@rosatipicks okay but something has to give. Clearly wages in Canada are not keeping up with the price of homes so again these prices aren't going to keep on going up forever unless people are okay with mortgaging a home for 100 years and that point would it even be worth it to buy?

[@igboman2860]

When they sell the house, is it still their family home?

[@winstonpipe7736]

When I sell a pet,I like to think they will be with a good family

[@igboman2860]

@@winstonpipe7736 A pet is a living thing. A house is a nonliving thing

[@jonflynn]

nope