It's just a cycle. Cycles can last for 30 years, like this housing boom, or 3 months. But, this housing boom will end with a correction, just like every other cycle for every other asset class in every other country in history.
Hoping for the best to come in days ahead. Low interest rates makes no major difference looking at the unaffordable prices.
No, if you read the article. It has been fueled by newcomers coming to the area.
Guess it's better than staying in barracks (like the people mentioned in article below).
The large increases in home prices in Canada over the past 20 years has been fueled by low interest rates. If interest rates were even a few percent higher many would not be able to afford the high housing prices in places like a Toronto. Immigration certainky helps bu5 low interest rates is the Biggest thing that has pushed housing prices higher.
By looking at the other article, here's the irony, not enough housing built in that community despite the past 20 plus years of low interest rates, to meet the needs in 2020.
Maybe you have experience staying in barracks. I have a very good rental apt at present and in no hurry since i know for sure this bubble is going to burst in the coming months. Many who own their property will surely try to dispose at a fair market rate once they land in food to mouth situation and unable to pay the mortgage with loss of jobs. In canada most of them live pay cheque to pay cheque with no money to keep aside. This is the ground reality. Many will boast with lots of stuff like fancy cars this and that but ultimately everything is financed .
Immigration may have contributed to the price increase, but not nearly as much as low interest rates. Immigration levels have remained fairly constant over the past decade and wouldn't explain the steepening slope of housing prices.
There's plenty of housing. Just look at the condo vacancy rates in Toronto at present. The "shortage" was caused by landlords seeking to list properties under short term rental schemes, which effectively removed this supply from the market. Now that services like AirBnB have been crippled, you are seeing these properties flooding the market, and driving rents down by up to 20%.
But housing shortage in that community. Doesn't make sense for anyone to get housing in Toronto to commute to that community in Ontario. Perhaps both you and KRP haven't travelled to that part of Ontario.
Did you also forgot about non residents Canadians and foreign nationals? Are you trying to say things like canuck that those people are captured in the immi stats? If so, couldn't you say something new?
Have you bothered to do any research on the number of properties purchased by non-residents? If you did, you'd see that the figures are very low, and largely irrelevant to this discussion.
Have you bothered to read every details of the thread? If you did, you'd see where the community is.
No, i didn't. But did you research about your previous statement "Nothing goes up forever. Nothing." Was it really nothing?
