Canada housing bubble reddit 2021 Greater Toronto Area, single-family MLS Home Price Benchmark Index: Updates and news about Canada's housing crisis. No parking, not “luxury”, just 1-3 bedroom apartments for sale in cities that are 4-6 stories high like Europe has. Canada needs to build mid-rise apartments for sale in cities. They were causational, but two distinct events. No young people or new immigrants can afford housing anymore. Yes, although I disagree that there's a housing bubble. 6 x 6. 4% YoY, back to Sep 2021. Updates and news about Canada's housing crisis. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? A housing shortage is the most profitable for anyone who invests in it. 4% from Feb 2022 Peak, -2. It would cause more pain/suffering, thus costing the gov more socially/economically, than trying to prop it up indefinitely at the cost of rising wealth inequality (basically young people can’t afford freeholds as their first house anymore). You may be eligible for a tax-free one-time payment of $500 if your income and the amount that you pay on rent qualify. That's my understanding as well, but the popping of the bubble is actually a separate event from the collapse. Housing is sideways comparables are down volume and listings are extremely low. Every homeowner and landlord would be ruined if housing prices permanently halved. Canada is not at war and relatively safe for LGBTQ, religion, diversity etc. It is the norm. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Yes, we should absolutely flood the market with housing as quickly as it can be done. Denver). ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? "The US Federal Reserve (The Fed) published its Q2 2021 exuberance index recently. The pandemic triggered a bit of fight or flight in a lot of people, and that’s triggered a run on the housing market(not just in Canada). ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? What the heck is going on in Canada? This has the shape of a classic bubble. 167K subscribers in the canadahousing community. But let's assume it's a bubble. This is a subreddit to discuss the housing crisis in Canada without banning posts for discussing supply *and* demand. The government caused this housing bubble by trying to make it easier for Canadians to buy. It will never happen. “This might be one of the biggest bubbles of all time,” Rosenberg, who held a bearish stance on the US housing market prior to its crash in 2008, said in a Bloomberg Television interview. I also use 6x10 bubble mailers, and those can be shipped Lettermail as well, but oversize only. I simply do not believe we are in a bubble. . ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The one-time top-up to the Canada Housing Benefit aims to help low-income renters with the cost of renting. The Most Splendid Housing Bubbles in Canada, May 2024: Prices Drop Further, -14. 9% year-over-year, the seventh month in a row of year-over-year declines, to a new three-year low of November 2021. Standard Lettermail has to be 9. Jul 4, 2021 · The Canadian housing bubble has been growing relatively unchecked for a while now, but 2020 and 2021 (so far) have been utterly game-changing for the housing market. The previous housing bubble burst because banks would loan to anyone with a pulse. Statistics Canada deals with this situation by trying to evaluate the price of housing services, as opposed to the price of a house. Canada’s real estate bubble has blown past the 90s bubble, and is going for the biggest of all time. He's happier and living a more fulfilling life there. the theories of the 2021 US A lot of bear economists think that the fed is overshooting, and may be about to instigate a severe crash. 1 x 0. In a note to residents, Mayor Ruthanne Fuller said despite some “sharp disagreements and frayed emotions” on the council, the new zoning clarifies the Updates and news about Canada's housing crisis. Propping up the housing market with mass immigration will lead to one possibility. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Jul 4, 2021 · The Canadian housing bubble has been growing relatively unchecked for a while now, but 2020 and 2021 (so far) have been utterly game-changing for the housing market. I don't see a lot of risk-free return speculating on housing right now, which should also alleviate some pressure. 9x10. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Its either the housing crisis that leads into civil unrest, or the economic meltdown that will happen when the housing market collapses. Nous parlons en anglais et en français. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Like r/CanadaHousing but without the censorship. The longer it takes to correct, the larger and more dangerous it becomes. That is only a quarter of the current shortfall in supply, let alone whatever the shortfall will be 4 years Ratios to buy houses in Canada vs. The average price of a detached home in Toronto in 2003 was about $300K. [4] Bloomberg Economics ranked Canada as the second largest housing bubble across the OECD in 2019 [5] and 2021 Mar 18, 2021 · As a way to curb its growing speculative housing bubble, the Reserve Bank of New Zealand (the Bank of Canada counterpart) announced it would raise the minimum requirements for mortgage down r/canadahousingbubble: Everything about the biggest RE bubble in Canadian history Everything bubble driven by fiscal and monetary policy. Scary thing is, what if this is just the price now. 0 after the election in 2021, instead of saying inflation - already out of control in housing, stocks, etc - was “transitory. 173 votes, 121 comments. The index, considered a “smoking gun” for bubbles, shows Canada is well into a real estate bubble. In order for it to be a housing bubble, it would need both home price overvaluation and speculation in the market. Realistically, house prices will stabilize and perhaps drop slightly, but I just Welcome to Canada’s official subreddit! This is the place to engage on all things Canada. Nobody Updates and news about Canada's housing crisis. 203K subscribers in the canadahousing community. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? At this point, Bank of Canada can’t afford to let the housing bubble unravel. Property prices have more then doubled since that time. Since the peak in April 2022, the index has dropped by 12. This startling revelation sheds light on the rapid escalation of housing costs in Canada compared to its southern neighbor. Housing is not in its own little bubble. And with a widespread affordability crisis, the country is now at an escalating risk of a housing bust. The 00s. We want common sense housing laws that ensure… Updates and news about Canada's housing crisis. In Vancouver last month, the benchmark price for detached homes rose by 13. In spite of that conviction, Rosenberg isn’t willing to make a call on when exactly the bubble will burst, warning these conditions could persist for years before a crash. Please be respectful of each other when posting, and note that users new to the subreddit might experience posting limitations until they become more active and longer members of the community. 5. The prices will come down over the next few years. After that happens I give it at least 6-12 months to begin seeing a substantial decrease in prices. The US makes 300k fewer homes annually than it would need to keep up with demand. “We are in a housing bubble, I guess people will say ‘Well, what will ever cause that bubble to burst, maybe it will never burst?’ Well, at some point, it will,” he No. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The Fed should NEVER have gone to 0 - they did 1. The fact is, property is more real to people, everyone needs a roof to live under, thus slightly overblown in the media. But today’s housing crisis extends beyond unaffordable homes and supply Mar 12, 2021 · Likewise, homes in the Vancouver area saw detached homes sell for an average of $3. Aug 29, 2023 · An international strategist is warning that Canada could be sitting on the largest housing bubble of all time. Nobody wants housing market to crash except the ones without housing already. America has a student debt crisis too. Strict mortgage stress-testing for loans, and an insurance-for-fee mortgage system that helps commercial banks hedge (you could even say secure) their loans against risk. 76 = $801,040, lower than your initial price by almost $50,000 In housing specifically, which is a need and different from other forms of assets, I would consider a bubble to be a situation where either there is little actual demand for housing outside of people speculating, or where the demand is artificially created like what happened in the US (though a good portion of that collapse was caused by what commercial banks were doing with mortgage backed China's housing bubble collapse could pop housing bubbles in other countries and cause a worldwide recession or another great depression. 3 million in just the first two months of 2021. Government knows what it’s doing (believe it or not haha). As well, demand for homes is through the roof, there is barely a 2 month supply of homes. Zandi won't call this a housing bubble. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The 2021 state law requires it to allow zoning capacity by-right for 8,330 new housing units. Using a scale in which a rating of over 5. There's also some financial folks and analysts that will clarify the housing demand/housing shortage crisis argument is misplaced. Those bubbles seemed just as rational in their day. China's housing bubble collapse could pop housing bubbles in other countries and cause a worldwide recession or another great depression. [3] By 2018, home-owning costs were above 1990 levels when Canada saw its last housing bubble burst. And the 80s. We want common sense housing laws that ensure… This can cause housing to become less desirable for a large class of potential buyers, and therefore decline in price. To be fair, there was a housing crash in the USA in 2008 and in Ireland in 2007 (if I recall correctly, it was around then) and I lived through the Toronto housing bubble of the late 1980s, so at the time this wasn't so implausible. The "bubble" would be the population's desire for detached housing which is not going away any time soon. Housing is close but not at the same level as stocks have been. And now the 20s. to make Canada's housing the most affordable in the G7. Lending requirements are more strict these days. I’m not gonna predict a housing correction/crash until the Fed starts to tighten monetary policy. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Updates and news about Canada's housing crisis. The housing bubble is everywhere. Like r/CanadaHousing but without the censorship. National Bank (NBF) data shows affordability in Q3 2022 eroded to the worst level since the early 1980s. This goes very hand in hand with all the recession talks recently. 7% in November from October and 3. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? What distinguishes Canada from the US housing market is the effective regulatory system erected to prevent true price crashes and insolvency. Mar 5, 2021 · Instead, of course, Canada is talking again about whether most of the country is in a soon-to-burst real estate bubble. " If you are highly leveraged then this is a risk. Find the best posts and communities about Housing Bubble on Reddit. The only way housing blows up is if our entire economy blows up too (or vice versa). it to the housing bubble in The inflation is a problem everywhere. Stupid over-simplification. Unlike in the FOMO-driven 2000s housing market, Zandi doesn't think speculation is driving our ongoing boom. The rich getting richer has been a global phenomenon; for the average middle class, real estate remains to be a primary investment and retirement plan. The best of reddit comments 1K subscribers in the REBubble2021 community. Racism is still absolutely prohibited, but you are welcome to debate population growth, immigration rate, foreign home buyers, and the merits of single family homes or the green zone. S. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Jan 6, 2022 · In February, a study of “the world’s least affordable housing markets” showed how Canada’s speculative bubble has made Toronto and Vancouver one of the world’s frontrunners when it comes to unaffordable housing. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? The current housing situation in Canada is just so absurd that the market must crash to reach sustainable levels. They won’t completely crash like people are hoping, but they’ll go back down to the trend line we saw before 2020. 007 inches or smaller, and oversized has to be 14. We likely still have a housing bubble which would cause significant pain when it pops. Yes, stock bubble get the chatter too, but we've got to realised that the price of most things have gone up. Disagree completely, housing was undervalued to historical trend from 2009-2021, it just recently got back to trend, so it’s actually fairly valued now. I doubt that it's a primary driver, and it tends to happen over a very long period of time, making it hard to measure compared to other short-term changes like the housing bubble of 2008. 1. Betting against housing is betting against the central banks of the world and betting that the western economy completely crashes. ” Updates and news about Canada's housing crisis. It was pumping money into housing, restrictions on things like sub-dividing lots, low taxes on home ownership and the profits of primary residences, urban sprawl, investors buying "income properties", and several other factors. Rents are through the roof, mortgage rates are high, and there still are bidding wars throughout major urban centres. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Recently brought up, and more housing bubble articles coming up. The most “radical” party on the housing issue, the NDP, is proposing a measly 500,000 housing units over the next four years. That is probably keeping the housing crisis from reaching Canadian levels. We want common sense… Is real estates in a bubble? What if it's the 'media attention' phase? Would still be a long way to go. We aren't represented. Home prices by metro in Canada. But any thoughts on whether it is (or isn't)? Or are there other factors going on? One article I saw suggests Canadian zoning laws are more strict than America's: "Canada is a more heavily regulated / heavily zoned market than the U. Those are the only possible outcomes imo. 0 would have been low enough - and should have raised to 2. r/canadahousing • This is why foreign capitals are flooding the Canadian housing market as there is significant Mortgage Rate "GAP", where in some foreign jurisdictions the rate is HIGH, however in Canada the rate is very LOW, as a result systemically encourage foreign capitals to invade and speculate on RE in Canada Something that always stuck with me is I saw an article back in January, 2020 (basically pre-covid) saying that the only thing scarier then Canada in a housing bubble was if Canada wasn't in a housing bubble. We want common sense housing laws that ensure: transparency and ample housing stock, to make Canada's housing the most affordable in the G7. The housing crisis is one that will see Canada lose a lot of talented people. A bubble that does not pop is not a bubble. incomes are already pretty bad. For example if a house was $850,000 in 2021 and went up 24% it would be worth 850,000 x 1. Nations like Australia that supply China's ghost cities with raw materials are going to be severely hit. If you are highly leveraged then this is a risk. I just don't see how this can be sustainable. When you look at the graph of Toronto housing prices, there was a pretty steady, almost linear increase until about 2016, at which point the price went absolutely insane. That's more of a consideration further into 2023, but it's very different idea than the standard "fed pivot" wet dream, because it's talking about what would be likely to happen after a severe crash, similar to what happened to the US in 2008 after major banks were falling like dominos. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? It took just about 2 years for the last housing price bubble to begin going down, but the current economic conditions are much, much different. The collapse probably can't happen in Canada due to our regulations of financial services. Buy when you want/need to, but be prepared to lose 10% in value at least and don't bank on housing being a money maker for you for the next decade. Lower interest rates around the world have led to patterns of incurring additional debt, including mortgage. Housing is complicated because it is both an asset and a consumption good, and what we'd like is to somehow include the consumption good aspect in the CPI, but not the asset aspect. I know “bubble” stories always drives eyeballs to news sites, but in Canada, my question is when has the country not been in a housing bubble? They supposedly were in the 70s. According to him, a In 2016, the OECD warned that Canada's financial stability was at risk due to elevated housing prices, investment and household debt. Canada’s real estate bubble has expanded at an astonishing pace, outpacing the growth of home prices in the United States by over 800%. TBD how a market like San Diego holds up even if there is a national housing pullback. Researchers say markets that become exuberant will experience a correction in the future. Share evidence… Updates and news about Canada's housing crisis. After 10 years he's finally had enough of the bullshit and the living cost in Canada and went back to Thailand with his family. A place to freely discuss and investigate the theories of the 2021 US housing bubble. Toronto had a housing bubble pop in 1989 that led to a decline in housing prices until 1996. At some point the story doesn’t get old, it just gets weird. 7 A 24% reduction in price is alot more significant than people think, especially after increasing to such large amounts. 200K subscribers in the canadahousing community. The 15% drop projected isn't even a blip. This adds costs to the price of a I will admit that I bought into "the housing bubble will crash any day now" back in 2008 when Garth Turner was spewing it. I'd posted something i'd seen ~18 months ago (early 2020 pre-covid) that is even more relevant: The only thing scarier then Canada in a real estate bubble is if Canada isn't in a bubble. Thinking out the what ifs if housing prices go down, this would mean rental rates would represent exceptional yield because there is still very little rentals available and demand is strong. That our history of cheap housing was the true bubble and we’re now in the new reality, which a lot of the world is already in with regards to affordability. 6, beat out London My takeaway: we're nationally still at the early end of a housing bubble, however it is very different from the last one. This takes a while before it actually hits the physical housing market. Not propping up the housing market leads to the other. 24 = $1,054,000 now if it than dropped %24 from that inflated price look what happens $1,054,000 x . The city council this month passed a compromise plan that officials said meets the legal mandate. 3M subscribers in the bestof community. And the 10s. 6 inches or smaller. It's not a housing bubble, it's an everything bubble (if it's a bubble at all). That’s the gambit. But if Canada blows up, then you better hope the rest of the world blows up too. In relation to my previous comment, you can also send other bubble mailers Lettermail as long as they are under a certain size. And the 90s. Dec 16, 2024 · Prices of condos in Canada fell 0. 6%. It might be a bit worse in Canada than other places but that might be because of other problems. lots reasons to keep coming to Canada even it’s becoming expensive for people that lived here most their lives. Reading up on old bubbles like the South Sea Bubble and the Tulip Bubble are instructive because we don't have any preconceived ideas about tulips or South Sea Company stocks in 2020 like we do with Toronto and Vancouver housing. ~~~~~-- Expert in a field related to housing and would like to do an AMA either anonymously or publicly? Oct 3, 2024 · Housing prices soared over 355 per cent between 2000 and 2021, while median nominal income increased by only 113 per cent. 0 after the dotcom crash, which led to a housing bubble. Many Canadians maintain hope for a soft landing, but higher mortgage rates and softening employment conditions are a lethal Welcome to Canada’s official subreddit! This is the place to engage on all things Canada. Welcome to Canada’s official subreddit! This is the place to engage on all things Canada. 1 is “severely unaffordable,” Toronto, with a score of 8. Every conservative, liberal, and a good chunk of the NDP are directly financially tied to keeping the housing bubble afloat. Canada is facing a massive housing bubble after more than two decades of cheap money and lax lending standards. It is the prime time for real estate and all data suggests that no, this is not the case. Updates and news about Canada's housing crisis. Another way to say this, it’s not that housing today is overvalued, it’s just the past decade it was historically cheap, those that bought before got a discount, those who buy today are . “I've analyzed housing bubbles in the developed world and Canada’s really got a unique one to its own,” Phillip Colmar, Managing Partner and Global Strategist at MRB Partners, told BNN Bloomberg last week. One of my friends is from Thailand, a red seal chef. Canadian housing affordability is now the worst in not one, but two generations. Sold housing has shifted to larger properties and detached and prices have gone up 1% overall implying that comparables are down. Even in the great recession there were areas where housing didn't really decrease in price, only flattened temporarily (eg. bqjjq ejs uvtozk ubmkb dbbt umleut lqnn boxf mxaceu ehac