I'm sure most 'older people' would not like to relocate from their long term neighborhoods/friends/doctors etc. Unfortunately it's not getting any better and if they don't qualify for a reverse mortgage or tax deferment some elderly homeowners are going to the local food bank.
There is certainly pressure from those trying to get into the housing market and economists. The cost of living has a huge influence on things like birth rate. I know plenty of families who would have had another child had it not been for the size of their home and the cost of daycare. Yes there are some young people who own multiple residences but most are shoebox condos or properties out of the GTA and would imagine that many are 35-40 yrs old that got in early enough to build equity without doing anything which allowed them to upgrade or buy another property. There is a much larger number who own no properties. If you are under 40 you have lived in a world where housing prices have never really decreased so many people are investing in mostly real estate and not diversifying thinking that real estate prices can never decrease. I have seen so many profiles of families paying such a huge proportion of their income on their mortgage with minimal savings. These families would be in trouble with a job loss, illness, pregnancy, etc. would put them in a very scary position. Things like CERB saved the housing market last year. Many have also use their home as a piggy bank and count on price increases to compensate for them taking out equity over the years. Many have had a family gift of a deposit which allowed them to get into the market in places like Vancouver or Toronto. The down payment is the big stumbling block versus the mortgage for many.
I don't disagree with your points but at the same time, I highly doubt or foresee housing prices ever coming down. But I can tell you, people don't own shoebox condos or properties outside the GTA. It would surprise you when most own in the GTA and those single family homes in the suburbs or near downtown Toronto. There is a lot of wealth that has been created by this pandemic, when my house makes six-figure tax free gains in a single year, you know the housing market is hot. But even if it were to crash, even a 50% drop means I still don't break even and have a profit. The people living in the ridings that decide elections (GVA, GMA, GTA) quite frankly don't want the prices to drop and that's why we see a Liberal government again. I'm more than happy to see the properties appreciate, like we've all said, who doesn't want to benefit from these crazy returns and use those gains to live luxuriously, buy fancy cars, etc.
Wealth generated during the pandemic is only due to lack of spending opportunities so I wouldn’t consider the wealth accumulated substantial. Many will go out and spend the money they saved once they can do things like travel. Many who were already in a good position were the ones who accumulated more wealth. There is also a large number of people who have lost money and businesses during the pandemic or will need to close their businesses in the next year. We haven’t seen the impacts of the pandemic when the government starts withdrawing many of the financial supports. Primary homes and investment properties are very different. Many have invested in small condos or properties outside Toronto. Never ending housing increases are not possible forever unless salaries suddenly start increasing substantially. Housing did not decide the election. A poor conservative candidate and the lack of desire to change governments during a pandemic was primarily what decided the election.
There are much spending opportunities in this pandemic. Things like travelling, buying a luxury car, jewelry and expensive handbags. You probably don't go out shopping or make online purchase..
People are spending like crazy already and we're still not out of the pandemic. Have you been around Brampton, Mississauga, Oakville? Heck even downtown Toronto you see bars filled and weddings going on like no tomorrow. There has been a huge wealth accumulation by segments of the GTA/GVA and quite frankly, this wealth is here to stay. If you really think housing will ever come down in GTA/GVA, you'll just miss out on gains in the long-term. As long as housing keeps going up, the liberal government will stay in power unless the conservatives magically elect a trudeau-type leader which is highly doubtful. Housing is a great investment driver, live off that wealth and into the retirement sunset!
It works as long as it does, until it doesn't.
We are far from normal spending. I would ask restaurant or airline/hotel. I am not sure what is going on in the suburbs but there are still public health measures in place and anyone have a large wedding is risking being a superspreader event although now they will need to show their proof of vaccination.
You're forgetting about the stock market. Tons of money made there.
I was doing some research on Calgary regarding jobs & housing. Looks like it is better to forget about Toronto & Vancouver.
Trailer/Mobile homes can provide great solution to the housing crisis. Why are they not(?) popular in Canada? Is weather the real issue?
For those getting in the past few years, sure. But for someone who has bought pre-2015/2010, like I've mentioned, even a 50% drop in prices means I still don't break even and make a huge profit. There is a lot of wealth made during the pandemic through stock market, real estate and reduced spending earlier in the pandemic. But now, people are spending, travelling more, and heck, people are splurging on weddings (100k+). I never could afford to travel business class but now with the stock market gains, real estate gains and investments, business class travel is affordable. This is not a solo story but tons of people in the GTA/GVA. There has been a huge wealth shift and it is in the interests of people in these areas of GTA/GVA to keep having house prices rise with the Liberal government hand-in-hand helping
Just head around the GTA on a normal weekend and you'll see the 500-600 people weddings/reception happening. And half the halls aren't even checking vaccine status, they could care less.
