Canada's Housing Prices are Unhinged

[@marketplayer]

Condos in Canada are completely unreasonable as they come with absurdly high maintenance fees and the possibility of a special assessment, which can be tens of thousands.

[@Precondo]

sure but condo investing has also made me an unreasonable amount of money

[@marketplayer]

@@Precondo Right, so they are not being built to live in but to invest in. One big government supported ponzi scheme.

[@bathtubrenew]

If you bought your house in the peak, you will likely loose it on the refi 3-5 years. As far as the housing prices going “up” they always go up this time of year, but still year over year it’s down. You can’t have housing prices inflated to 9-12 times yearly earnings, that leaves 2-3% of the population that can buy a house, and you can’t have a housing market with these numbers. We have sales down 50-75% and no one is being forced to sell their house, why??? Because the government banking regulators has allowed everyone with a fixed rate variable mortgage, to effectively “shadow default” through allowing the interest owned to accumulate on the mortgage balance, because they can’t even pay the minimum interest requirements let alone the principal payments, (this is type of silly banking that caused the 2008 mortgage debacle in the US). This is a balloon that is going to blow up the housing market. And it’s coming home to roost in the next 6-24months. Then we will see the inventor flood the market and no buyers to meet the people desperate to sell their homes. FIY: HoC finance committee says it’s 33% of the entire Canadian housing mortgage mortgage.

[@7966016]

Absolutely! We'll said!

[@WhoTube277]

Bang on, dude.

[@jeffotoole4509]

Yep to all that. The amount of risk that is in the Toronto housing market is astounding. 30% of all the loans out there not even covering interest is a absolute joke. I hope all these people like paying their rent payments to their lender because that’s all that is happening here. Canadians have to be some of the dumbest people on the planet.

[@TheNewSchoolGamer]

Sure, a crash/large pullback due to triggered variable mortgages is possible only if a significant amount of those mortgage holders are insolvent. The thing is: almost half of homeowners are mortgage-free, most mortgage holders are on a fixed rate and won't be renewing in the 6-24 month and the rest have variable (fixed or adjustable payments). A large portion of variable rate mortgage holders would need to default at the same time as they are the minority of homeowners so you'd need a big catalyst for that happen

[@donm2067]

Can you break up the paragraphs next time please?

[@sam510938764]

The issue of Canada vs. the U.S. is that the U.S. simply has more metropolitan areas to choose from. Even for the strictly "coastal elite" lifestyle there are: NYC, Boston, Seattle, Portland, San Francisco, Los Angeles. All very large cities with diverse options for employment and entertainment. The Midwest, The South, Texas, Florida, the Rockies, etc. each have multiple metropolitan areas that are just as viable but slightly less expensive than NYC/SF/LA. In Canada there's basically just Toronto/Vancouver. Montreal is survivable without knowing French but that closes the doors to every decent paying job. Calgary/Edmonton are on the rise but in terms of urban experience they are on par with suburban Toronto which is not exactly what young people prefer the most. Every other city is just really not on the radar due to the development inequality in Canada. Immigration is a contributing factor but if Canada had more evenly distributed development of its urban areas, there wouldn't have been such a drastic spike in RE prices in Toronto/Vancouver regardless of how many people are coming in. NIMBYs and zoning laws are also key factors which blocks most mid-density housing as their unit economics are worse than high-rise condos while clearing the same regulatory hurdles. This is how we end up with so many high-rise condos placed immediately next to single family detached housing in Toronto and Vancouver.

[@mbovb006]

With commercial real estate and even downtown prices falling to out of city prices - I don't think this logic applies anymore. Maybe 10 years ago. Not anymore. Prices in metro cities most expensive areas in the US are comparable to Vancouver. SF, NY, and maybe Santa Monica. But with declining commercial real estate and more WFH less and less people are living downtown. So this logic is pre-pandemic logic. Canada's real estate market has thrived off of scarcity. Manufactured scarcity. The dollar is now weaker and theres no more 1-2% interest rates. No more cheap money. Except now it's no longer cheap money and they are underwater in property prices that have fallen sharply since pandemic booms. This is Canadas 2008 that never happened. Its still in that rising rate that coincided with the US rise except the US leveled off. As unaffordable as it is in the states its nowhere near what Canada is going through. Now living 4 hours away from downtown Vancouver is the same price as downtown Vancouver. Unless you want to inhale cow shit in Chiliwack - this metro logic is bunk.

[@mellykick213]

Been looking for over 2 years. List a couple bids. What I’m seeing is a lot of older people at open houses, city people retiring and buying over priced houses in small towns that the ones who live in the small towns cannot afford. If you don’t have atleast 100,000 downpayment for a decent house you won’t be buying one for a very long time. I see some houses sell quick while others take months to sell. It’s beyond frustrating working first time buyers cannot afford or qualify for a decent home.

[@SimcoeAce]

I think that's a pretty accurate assessment. I'm one of those "older people" who already lived in a small town ... but a relatively expensive highly desirable small town. I sold my larger house at the peak of the market intending to downsize & expecting prices to drop over the course of the following year. It hasn't really happened because of Toronto buyers coming in. I have a good deal on a rental and waiting to see what happens next. Seriously considering moving to Spain - when you look at the international chart you can understand why: real prices in Spain have not moved in the last 50 years, while in Canada they have quadrupled.

[@mikesmith-nj1ij]

This guy features his own tweets in his KZbin videos! I love it! You know you're good when... 😂 Lol.

[@inthemiddleofst]

Except that 50% of canadian population is living in a relativly small region in southern Ontario/Quebec. So these few markets DO REPRESENT the Canadian housing real estate.

[@Lifeisapartydresslikeit]

I can’t believe it’s so resilient!! I think prices will go up when rates go down next year - COVID 2.0!! Great video 🙌🏾

[@7966016]

The CIBC article only holds true because of banks allowing mortgage holders to only pay interest, higher interest rates have not yet been felt, that's why I believe once mortgages renew in 6 moths to 18 months is when really get a better picture on the housing market, and I feel it doesn't look good!

[@Lifeisapartydresslikeit]

Why? The banks are still working with borrowers to afford their mortgage. Nothing is changing. If you want to keep you house the bank will help. CIBC said rates are going down by January 2024

[@7966016]

@Tennika Samuels Even if CIBC has a crystal ball and rates start to come down in January, how far do you think that would be? Rates will not go below 3.5% anytime soon, if not ever! That will not be enough to save half those mortgages in shadow default! There are over 200 billion in mortgages that are at risk. How do people actually think they are going to benefit from purchasing a home like my generation did (Gen x)? They are all fools to think so!! Home prices have reached the point that they will not go up any further. It will come down eventually, or the economy will pay for it, and that in itself will cause a market crash. You can't save it at this point, only prolong it!!

[@Lifeisapartydresslikeit]

@@7966016 housing is higher in New York, Vancouver, London, Paris and Tokyo- I don’t think anyone understands - there’s only 2 places people want to live - Toronto and Vancouver. Immigrants don’t wake up and say let’s move to Saskatchewan?! So housing will continue to rise in Toronto - that’s a fact. And 40 year mortgages will return if not 40, - at least 35 years. Stay tuned

[@7966016]

@Tennika Samuels The difference between those cities you mentioned is that you can drive 30 minutes out and buy a home at 2/3 of the price! Here in Toronto, it's overpriced even 2 hours away! And why would anybody want to live here with a 40-year mortgage? What a garbage life that would be, the never never mortgage plan! Lol! Keep dreaming!

[@reefermadnesss]

What about tillsonburg or Woodstock On. Small towns....completely unaffordable😊

[@nicolasclermont893]

What has happened to this country is a terrible crime.

[@-Nab-]

No idea where the market is headed but I’m not surprised at todays action given population growth and monetary debasement The Dollar has lost at least 30% of its value since the Covid pandemic and people forget to factor that into home prices because they’ve been used to 2% inflation

[@youtubeprime-dw6qh]

America's largest metro economy - the New York City area - produced 3.5% more economic output last year ($1.77 trillion of GDP) than the entire country of Canada ($1.71 trillion of GDP) and the New York City metro area as a separate country would have been the 10th largest economy in the world behind No.Dec 18, 2019

[@SteveKarrasch]

Interest in investment condos returning in my market as well.

[@paulshealthfitness7922]

Also that's not why Japan's housing crashed you should look into it

[@advanceddronetech9461]

idk how so many people are affording 5k monthly payments on a million dollar, i have a professional job but thats like my entire salary after taxes.

[@donm2067]

Basement suite you charge 3k$ a month for

[@jamesstuart3346]

I just bought a 2 storey house with a basement on 1.6 acres for $90,000 so I don't know what the fuss is about

[@elai3147]

congrats, which city?

[@EmilyHamsterLover]

Where? North Pole? It's an igloo and will melt dude

[@Slickpete83]

*Cool i just bought a big beach front mansion on 1.7 acres property in Arizona for $10k from some guy off the internet from Nigeria* 😅🤣😂

[@adk4419]

Where?

[@rizmua]

tim buck 2!

[@kalebdickson826]

Come to Manitoba boys!

[@romannumeral5547]

So it seems that part of the problem, once again, are speculators. This may be more concentrated in the condo market rather than the detached home market but it's troubling none the less. Speculation has to be stopped. If you own a home already you shouldn't be allowed to purchase another when there's someone out there that doesn't and is looking to purchase. Potential buyers need to be screened and required to disclose their principle residence and any other current ptoperties they own. House prices aren't just climbing because if demand. There are too many people out there with too much money in hand that will outbid everyone else. Obvious when you look at house prices and real median incomes. There's a lot that could be done but our chickenshit governments don't want to rock the foreign money boat that funds their party. Canadians have been sold out.

[@paulshealthfitness7922]

you sure that's not bitcoin?

[@willyg3241]

I think we need to form a renters union then force a reduction in rent by 2% a year until we reach something affordable again. This will allow renters to grow their savings while making real estate less lucrative for investors, and will give people that need housing a chance to buy again…could this work legally?

[@milestephcampbell2052]

If you put yourself in the landlord's shoes with skyrocketing heating costs, reno costs, land taxes, contractors, how could you expect lower rent? That sounds like victim mentality to me, all due respect. If it was cheap to own and maintain a building , everyone would. I think we have to stop looking at the appartment owners as the enemy. Just my 2 cents. These are tough times for most folk.

[@willyg3241]

@@milestephcampbell2052 Back in the 60s and 70s employers had the same mentality as you and it's what made unions so popular and successful. So it seems the need is here again now, just in a different market.

[@milestephcampbell2052]

@@willyg3241 "The same mind set as [you]". You are talking about completely different things, here ... the unions in the 70s ensured employees had safe, fair work environments... unionizing against actual people paying mortgages on appartment buildings would be unionizing to ensure bankruptcies of those who took the risk. (you obviously have never been a home owner) Then when all the private owners are bankrupted the gov't takes over the buildings for pennies on the $. History repeats itself. Perhaps you would feel more taken care of in a communist country? Think this through - I'm no land lord, but, you sound like you're marching towards socialism/communism ideals. I have relatives who meagerly survived communistic ideals. NO country survives socialism/communism well. Grass is always greener ... at first.

[@willyg3241]

@@milestephcampbell2052 it’s a union against business owners, and it’s for the right to keep a roof over my families head provided I put in an honest 50hr work week and don’t spend my money like a jackass; otherwise the war against socialism was won just to begin the war against capitalism. Ever thought about what happens when someone wins the game of capitalism, and the rest have nothing? …It’s probably going to put us in a pretty dark place for a while.

[@SlicedSlappy]

Too much demand not enough supply. Manufactured value. Chinese money

[@bt6875]

Housings will always continue to go up. 20 years from now average home in Canada would be 3x or more. I have learned this lesson since 1978....

[@darwin6984]

I will sell my canadan properties this year, given the price will keep fallen for these years😢

[@robertdobie8680]

Sell, and then re-invest in Calgary. People are fleeing Vancouver and Toronto and buying homes there. Prices there are climbing fast.

[@CD-pm9kc]

One word, immigration.

[@tonypointer7026]

I thought they be crashing aready

[@blubblubee]

And yet the canades keep king trogdau on power

[@donm2067]

He has nice hair

[@gmw3083]

TO is for wee todds. Simple as that.

[@duckfield2520]

CLOSE THE BORDERS FFS

[@donm2067]

Racist.

[@vantage789]

My wife and I have a combined income of $250k and we have $725k in savings and we're wondering whether we can afford anything. Wtf is this bs?

[@jeffotoole4509]

Why would you want to. Take the cash and buy a sweet pad in Tampa.

[@rosatipicks]

If you have 725k in savings, you’re not investing properly lol or at all

[@vantage789]

@@rosatipicks ? We have $725k invested and now we want to buy a place.

[@rosatipicks]

@@vantage789 then buy lol. 725k is plenty. Just put a 150-200k down payment

[@vantage789]

@@rosatipicks Something decent in the city is $1.3m. That’s a $1.1m mortgage, the monthly payments will be north of $6000. Wife goes on mat leave, then what? Or one of us gets laid off, etc.

[@robertlucas7107]

HOW IS THIS NOT ABUSE ON THE YOUNGER GENERATIONS CANADA??!!

[@1mikesass]

I went to Istanbul 15 years ago. Everyone there had dreams to move to Canada. People there live crammed together with zero space, so i saw that there is huge demand from similar places with a totally different expectation of density and lifestyle. The single family north american model is a thing of the past for large cities.

[@donm2067]

Well let them come here and experience the same thing, because that's where we are headed