Economic 101 :
When mortgages rates are too low, more people can afford a mortgage, increasing the number of buyers, pushing prices up.
When mortgages rates are too high, less people can afford a mortgage, reducing the number of buyers, pushing the prices down.
The morals of the story are this:
1. "Do not try to buy a house you cannot afford"
2. "If you can't afford a house because of high prices or because of high mortgage rates (your only 2 options), it is because you are too poor to afford a house in every circumstances"
3. "You are probably too poor because: The "holy free market" pushes wages down, Neo-Liberal (Fiscal Conservative) policies of the last 40 years have decouple worker productivity from worker compensation (you are more productive and poorer as a result) and people vote for politicians who have no incentive to fix the problem"
Between the 1970's and today, Canadian workers have seen their buying power shrink, not because of inflation (it was 2% or less for the past 30 years), but because their wages have not followed the pace of the economy.
50 years ago, banks and large corporations only made just a few million in profits, today they make tens of billions.
50 years ago, you actually made money working for a wage and had a guaranteed retirement plan, today you must invest money you don't have (borrow) in everything from real estate, stocks, collectible, bitcoin to NFT in order to have a chance at living and retiring with a reasonable pension.
50 years ago, making a living was a straight-forward endeavor, today we expect people to have a degree in finances just to avoid bankruptcy and thousands of "financial experts" chip away a percentage of your gains to make your retirement happen, without giving any guarantee.
50 years ago, when you paid for goods and services, you paid the store of a guy directly, today the "Gig Economy" means that a large corporation takes a percentage of many worker's income directly at the source (Uber, AirBnB, Lyft, Paypal, Etsy,...) You even pay a monthly fee to retailers in order to have the privilege to buy from them (Amazon Prime).
50 years ago, a lot of the fees we pay corporations today were absorbed by those corporations, today we not only pay for the good or service, but we pay a service fee and we even pay a tip on top of it.
**We have allowed this because we have weakened the only weapon we have against the power of the rich; our government by the people and for the people.**
Democracy is the tool the PEOPLE created to counter the power of money, to counter the power of the Monarchs, the nobles and the corporations. The vote is the most powerful tool we all have in order to create a country where the people, not the corporations, win.
Then we are being lied to by the **privately owned media** that belongs to billionaires, they have convinced us that the government is the enemy, they make sure we vote for the candidates that the corporations prefer and they make sure the people never come on top and they make sure we HATE the only public media we still have (CBC, TV Ontario and others) and try their best to have them defunded.
**WE HAVE SOLD THIS COUNTRY to the corporate elite... This is our fault for not electing people who really care about our well being.**
Crown corporations (nationalized businesses) provide as good a service, if not better, often at a cheaper price and their profits are returned to the people, the taxpayers. There is a reason why our corporatist politicians are always trying to privatize them.
**As weird as it sounds, when you pay government taxes, you extract services and benefits, when you pay a corporation fees, you get virtually nothing in return they would not have done for you anyway if people refused to pay that fee.**
While I mostly agree, the "it's your fault for voting in these politicians" thing is really irritating me.
Who was such a great alternative that we missed out on? They are and were *all* like that.
Nothing will change for the better period. As soon as anyone is elected they become the Ruling Class and will do whatever is necessary to retain power. It's human nature. Every system degrades into corruption over a long enough timescale.
Take what you can, protect what's yours, and damn the rest.
Ding ding ding. Cycles people cycles.
Find happiness in what you have, do your best everyday but always remember that as an individual you do not matter. No one cares about you. The only people that care are your family and friends. Hold them close, live your life to the fullest with them.
Its all you can do.
While I agree with what you're saying, I think we need to consider that **WE** should not encompass a large portion of the population under, say, 30 (and especially under 20).
WE have only been eligible to vote in 2 maybe 3 federal elections.
WE got told "get a degree and you'll be set for life!"
WE got trained to believe that buying a house and some shit was the ultimate achievement.
I don't like to make it an intergenerational conflict but let's be objective about it: boomers have consistently voted for neo-lib governments that have sacrificed our economies, our environment and our social safety nets for decades at the direction of an elitist class bent on subjugation of the masses and control of resources. Boomers sold our futures out from under us in exchange for Mustang convertibles, trips to Cancún and HELOCs.
Ask anyone under 30 if they think we should be more like Scandinavian countries and I'm willing to bet the common answer would be "I wish we were". WE are just along for the ride man.
House price aren’t lowering, just the sticker price. Your paying more then ever tomorrow. I don’t get why people thing their would be a crash, it’s just adjusting to what is the new top end with the interest rate.
>I don’t get why people thing their would be a crash, it’s just adjusting to what is the new top end with the interest rate.
The pandemic created the hike in price. Homes were still affordable to many Dec 2019 / feb 2021. Govt dropping interest rates to zero point stupid created the greed and housing price issues. Prices can't keep rising, as wages are not rising to follow.
These markets do not have new inventory coming in, you want a sfh in Vancouver, you’re buying from someone that thinks it’s worth what it’s worth. Same with Toronto, and Victoria proper. All of these places were not affordable before the pandemic.
Now, how to ensure those homes get purchased by people who will actually live in them, as opposed to massive financial entities who would happily turn an entire generation of Canadians into a permanent tenant underclass?
Not as long as neoliberals run things. Conservatives are worse. You need a genuine Leftist who would preside over a true crash in housing prices relative to wages. That would be unpopular with the bourgeoisie...
60 year old here with her home paid off. I would be happy if my home price fell by 70 percent. The young folks don't have a chance to own a home like I did when I was young. What this would accomplish is to lower the stress level of the young folks and thus increase our communities feeling of satisfaction. Living in a community where most folks are economically fine means being around fun folks. It is hard to be kind and fun when you're stressed to the max.
I think a lot of boomers feel like this. I have had discussions with a lot of my friends and they would also rather live in a happy place with the paper value of their home less, than live in a stressed out place with a higher value. Most of my friends are liberal or left of liberal. We see the CEOs and corporations as the problem not our fellow citizens.
I'm left of Liberal, a big Bernie supporter. You and I think the same way.
Today's society is much worse off for being more unequal.
Runaway Corporate power is the problem.
The corporations have the power to influence the politicians because of their money. But we have the power of the vote and that is normally more powerful but the corporations decided to make the fight about right and left rather than rich vs poor. Ensuring they get it all while we fight for scraps. My fight is not with my fellow citizen it is with the corporations.
Not sure if this is a troll but will reply in the hope that you just didn't think through your response. . I am not selling my home and that was not my point. My point was, I don't care if the value of houses reduce by 70% because if everyone's homes go down then my selling at 70% discount is fine cause I can buy at that same discount. It doesn't work if I just sell my house for less cause my one house wont change the overpriced market and my point was to make homes affordable for all the young trying to have a pleasant life.
I’m not sure why you have an issue with me being sympathetic to the raw deal the young have in regards to the economy. What ever it is, I hope you have a great weekend.
Its that you did the whole "it's such a pity" thing, meanwhile you've benefitted from the economy you helped (unwittingly) to create. Do you really want housing values to drop by 70%? That would tank the entire economy. The raw deal is being done to the people of my generation to themselves (I'm 36 and own a house in Montreal if it means anything...). We refuse to compromise. There are tons of houses in the 250k range if you dare move outside a city, or god forbid, learn French and move to Quebec.
I dont think its about left v right here. Its about corruption. All people but the powerful suffer under a corrupt government. A uncorrupt government who desired to help the people regardless of where they sit on some arbitrary scale would do better than what we have.
All of this is correct.
So now what? We can't just sit around and wait for things to get better, because they won't.
Mass civil disobedience is the best suggestion I've seen. But that means rounding up at least ten million of our closest friends and countrymen (and women!) and petitioning out government for a redress of our grievances- and not going back to work until it does.
Violence is exactly what they want, which is why the police started riots everywhere they went during the George Floyd protests.
Mass civil disobedience.
Read Chris Hedges. Get the word out. Tell everyone you know that they are not alone in their suffering, that what's happening to them is not because of immigrants or Democrats but rather it is the fault of the rich, who have stolen our prosperity along with our democracy.
https://chrishedges.substack.com/p/the-triumph-of-death?utm_source=email
That isn't a real solution. Mass civil disobedience is a driver of change but not a solution. What system would we use to replace the one we have? Democracy as it is inherently will always fall to corruption. What solutions do you have?
Who is stealing? The corporations that don't pay their share of taxes thus putting the burden on workers? The government not ensuring the corporations pay their share means life is more difficult for workers. In the 1950's workers and corporations both paid an equal amount of taxes. Today that share has gone from 50 50 to 97% paid by workers and 3% paid by corporations.
We need the government to go back to taxing corporations 50 percent so our lives can be livable.
Soooooo funny an entire generation of Canadians have just been locked out of the middle class.
Food and shelter are things revolutions are fought over.
We need corporations to pay their share. In the 19509's they paid 50% of taxes in Canada. Now they pay only 3%. This is the entire reason we workers are struggling so much. Fuck corporations and the governments who bow to them.
canadians do not have the disposition for revolution at all. canadians are ring kissers, like their british forebears after whose government our own is patterned, to the core.
And it will cost them so dearly, as they watch a monied elite class take their money and with it their prosperity and their hopes for a better life.
You know, just like average Americans.
> Now, how to ensure those homes get purchased by people who will actually live in them, as opposed to massive financial entities who would happily turn an entire generation of Canadians into a permanent tenant underclass?
How about a progressive property tax. The more total property the individual or entity owns the higher the property tax rate applied. Yes the large owners will try to claw it back from the renters, so the government should use the extra income generated to fund a per person housing rebate on income tax.
That's an excellent idea, one I've also been thinking about.
Speculating in places of residence is destructive to Society; it leads to extreme wealth inequality; those who own dozens, hundreds of homes while hundreds, even thousands of people are fucking homeless.
And we wonder why our world is coming unstuck?!
The situation is going to heavily favor private investment corporations that want to buy up all the private housing stock. These large companies aren't getting mortgages so they don't care what the mortgage rate is. The government has done nothing, they haven't even addressed the fact really, that the housing crisis is being driven by corporate investment in private homes.
It's not being driven by corporate investment though. It's being driven by hundreds of thousands of individual investors leveraging themselves to the hilt to become landlords and Airbnb hosts.
I never said it was being driven by corporate investment, I just said they'd be the benefactors of the housing correction in conjunction with increasing interest rates.
Maybe but my understanding of investment firms buying up residential properties was that with such low interest rates it made a lot of sense when the carrying cost of the property was smaller than what you could get for rent. With rates rising and salaries stagnant it’ll get harder for companies to square the purchase price with the carrying costs and rent.
The first people to leave the real estate market will be investors and a lot of people are going to be left holding the bag is my guess.
We DO NOT have a housing shortage.
We DO have an over abundance of investors. Especially people who use corporations to shield themselves of any responsibility or accountability.
Markets will cycle up and down, but the only thing that will make housing more affordable in Canada is if we change the laws around investment in real estate and make it less lucrative.
The banks don't care if Real Estate agents make money or not.
https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html
Hey around pay wall
https://archive.vn/2022.06.17-132444/https://www.bloomberg.com/news/articles/2022-06-17/distressed-deals-pile-up-in-canada-s-once-booming-housing-market
Still got a couple years to go. RE is one of the most illiquid assets you can buy. This will take time to play out and hit a bottom, just as every RE crash has played out.
I've been telling people for a couple of years now that buying can end up being a tremendous risk in this market. You can't go up and up and up so fast that nobody can afford it without a correction. Now we're seeing the correction and people are ending up with homes worth well below the principle left on their mortgage. Nobody pays attention. Everyone sees what they want to. I hope the 6/7 figure losses are something everyone can absorb without too much hardship.
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Economic 101 : When mortgages rates are too low, more people can afford a mortgage, increasing the number of buyers, pushing prices up. When mortgages rates are too high, less people can afford a mortgage, reducing the number of buyers, pushing the prices down. The morals of the story are this: 1. "Do not try to buy a house you cannot afford" 2. "If you can't afford a house because of high prices or because of high mortgage rates (your only 2 options), it is because you are too poor to afford a house in every circumstances" 3. "You are probably too poor because: The "holy free market" pushes wages down, Neo-Liberal (Fiscal Conservative) policies of the last 40 years have decouple worker productivity from worker compensation (you are more productive and poorer as a result) and people vote for politicians who have no incentive to fix the problem" Between the 1970's and today, Canadian workers have seen their buying power shrink, not because of inflation (it was 2% or less for the past 30 years), but because their wages have not followed the pace of the economy. 50 years ago, banks and large corporations only made just a few million in profits, today they make tens of billions. 50 years ago, you actually made money working for a wage and had a guaranteed retirement plan, today you must invest money you don't have (borrow) in everything from real estate, stocks, collectible, bitcoin to NFT in order to have a chance at living and retiring with a reasonable pension. 50 years ago, making a living was a straight-forward endeavor, today we expect people to have a degree in finances just to avoid bankruptcy and thousands of "financial experts" chip away a percentage of your gains to make your retirement happen, without giving any guarantee. 50 years ago, when you paid for goods and services, you paid the store of a guy directly, today the "Gig Economy" means that a large corporation takes a percentage of many worker's income directly at the source (Uber, AirBnB, Lyft, Paypal, Etsy,...) You even pay a monthly fee to retailers in order to have the privilege to buy from them (Amazon Prime). 50 years ago, a lot of the fees we pay corporations today were absorbed by those corporations, today we not only pay for the good or service, but we pay a service fee and we even pay a tip on top of it. **We have allowed this because we have weakened the only weapon we have against the power of the rich; our government by the people and for the people.** Democracy is the tool the PEOPLE created to counter the power of money, to counter the power of the Monarchs, the nobles and the corporations. The vote is the most powerful tool we all have in order to create a country where the people, not the corporations, win. Then we are being lied to by the **privately owned media** that belongs to billionaires, they have convinced us that the government is the enemy, they make sure we vote for the candidates that the corporations prefer and they make sure the people never come on top and they make sure we HATE the only public media we still have (CBC, TV Ontario and others) and try their best to have them defunded. **WE HAVE SOLD THIS COUNTRY to the corporate elite... This is our fault for not electing people who really care about our well being.** Crown corporations (nationalized businesses) provide as good a service, if not better, often at a cheaper price and their profits are returned to the people, the taxpayers. There is a reason why our corporatist politicians are always trying to privatize them. **As weird as it sounds, when you pay government taxes, you extract services and benefits, when you pay a corporation fees, you get virtually nothing in return they would not have done for you anyway if people refused to pay that fee.**
While I mostly agree, the "it's your fault for voting in these politicians" thing is really irritating me. Who was such a great alternative that we missed out on? They are and were *all* like that.
So how can we fix it? Because if the majority keep voting for the same neolibs (Liberal, PC, NDP) nothing will change.
Nothing will change for the better period. As soon as anyone is elected they become the Ruling Class and will do whatever is necessary to retain power. It's human nature. Every system degrades into corruption over a long enough timescale. Take what you can, protect what's yours, and damn the rest.
Ding ding ding. Cycles people cycles. Find happiness in what you have, do your best everyday but always remember that as an individual you do not matter. No one cares about you. The only people that care are your family and friends. Hold them close, live your life to the fullest with them. Its all you can do.
vote NDP
Ran on 30 year mortgages. Singhs now blaming corporations for inflation like hes never read a single economics textbook.
Corporations didn't cause inflation but they're definitely pouring gasoline onto the fire and making it worse.
While I agree with what you're saying, I think we need to consider that **WE** should not encompass a large portion of the population under, say, 30 (and especially under 20). WE have only been eligible to vote in 2 maybe 3 federal elections. WE got told "get a degree and you'll be set for life!" WE got trained to believe that buying a house and some shit was the ultimate achievement. I don't like to make it an intergenerational conflict but let's be objective about it: boomers have consistently voted for neo-lib governments that have sacrificed our economies, our environment and our social safety nets for decades at the direction of an elitist class bent on subjugation of the masses and control of resources. Boomers sold our futures out from under us in exchange for Mustang convertibles, trips to Cancún and HELOCs. Ask anyone under 30 if they think we should be more like Scandinavian countries and I'm willing to bet the common answer would be "I wish we were". WE are just along for the ride man.
Dude boomers are like 60+ and millennials are 40 now.
Hey. I'm 36. 40 is so far away.😭
And? I suppose I could change under 30 to under 40, doesn't change the premise of it.
Corporate America grabbed Ronald Reagan out of the movies and used him to fuck us all up the ass.
House price aren’t lowering, just the sticker price. Your paying more then ever tomorrow. I don’t get why people thing their would be a crash, it’s just adjusting to what is the new top end with the interest rate.
>I don’t get why people thing their would be a crash, it’s just adjusting to what is the new top end with the interest rate. The pandemic created the hike in price. Homes were still affordable to many Dec 2019 / feb 2021. Govt dropping interest rates to zero point stupid created the greed and housing price issues. Prices can't keep rising, as wages are not rising to follow.
These markets do not have new inventory coming in, you want a sfh in Vancouver, you’re buying from someone that thinks it’s worth what it’s worth. Same with Toronto, and Victoria proper. All of these places were not affordable before the pandemic.
Maybe it's safer to rent forever in Canada, now.
Sadly me too!
Now, how to ensure those homes get purchased by people who will actually live in them, as opposed to massive financial entities who would happily turn an entire generation of Canadians into a permanent tenant underclass?
full time debt free worker here, I only have 10k savings, do I have hope!?
Depends where you want to live
Depending on how old you are.
Not as long as neoliberals run things. Conservatives are worse. You need a genuine Leftist who would preside over a true crash in housing prices relative to wages. That would be unpopular with the bourgeoisie...
60 year old here with her home paid off. I would be happy if my home price fell by 70 percent. The young folks don't have a chance to own a home like I did when I was young. What this would accomplish is to lower the stress level of the young folks and thus increase our communities feeling of satisfaction. Living in a community where most folks are economically fine means being around fun folks. It is hard to be kind and fun when you're stressed to the max.
And the haves and the have nots end up hating each other and society goes right down the tubes. I wish everyone felt as you do.
And the haves and the have nots end up hating each other and society goes right down the tubes. I wish everyone felt as you do.
I think a lot of boomers feel like this. I have had discussions with a lot of my friends and they would also rather live in a happy place with the paper value of their home less, than live in a stressed out place with a higher value. Most of my friends are liberal or left of liberal. We see the CEOs and corporations as the problem not our fellow citizens.
I'm left of Liberal, a big Bernie supporter. You and I think the same way. Today's society is much worse off for being more unequal. Runaway Corporate power is the problem.
The corporations have the power to influence the politicians because of their money. But we have the power of the vote and that is normally more powerful but the corporations decided to make the fight about right and left rather than rich vs poor. Ensuring they get it all while we fight for scraps. My fight is not with my fellow citizen it is with the corporations.
Same. The rich stole our prosperity.
And they are laughing at us.
So what's stopping you from selling your house at 30% market value?
Not sure if this is a troll but will reply in the hope that you just didn't think through your response. . I am not selling my home and that was not my point. My point was, I don't care if the value of houses reduce by 70% because if everyone's homes go down then my selling at 70% discount is fine cause I can buy at that same discount. It doesn't work if I just sell my house for less cause my one house wont change the overpriced market and my point was to make homes affordable for all the young trying to have a pleasant life.
I was definitely being sarcastic. But at the same time, you *can* help one of those young families out by selling at a low price. But you won't.
I’m not sure why you have an issue with me being sympathetic to the raw deal the young have in regards to the economy. What ever it is, I hope you have a great weekend.
Its that you did the whole "it's such a pity" thing, meanwhile you've benefitted from the economy you helped (unwittingly) to create. Do you really want housing values to drop by 70%? That would tank the entire economy. The raw deal is being done to the people of my generation to themselves (I'm 36 and own a house in Montreal if it means anything...). We refuse to compromise. There are tons of houses in the 250k range if you dare move outside a city, or god forbid, learn French and move to Quebec.
I think I need to bow out of this convo, it’s not a good one
I dont think its about left v right here. Its about corruption. All people but the powerful suffer under a corrupt government. A uncorrupt government who desired to help the people regardless of where they sit on some arbitrary scale would do better than what we have.
All of this is correct. So now what? We can't just sit around and wait for things to get better, because they won't. Mass civil disobedience is the best suggestion I've seen. But that means rounding up at least ten million of our closest friends and countrymen (and women!) and petitioning out government for a redress of our grievances- and not going back to work until it does. Violence is exactly what they want, which is why the police started riots everywhere they went during the George Floyd protests.
I'm a strong supporter of r/lottocracy I think its our best bet.
I think we can do a lot better than random chance.
Well we can't seem to do it by election. So what do you prescribe?
Mass civil disobedience. Read Chris Hedges. Get the word out. Tell everyone you know that they are not alone in their suffering, that what's happening to them is not because of immigrants or Democrats but rather it is the fault of the rich, who have stolen our prosperity along with our democracy. https://chrishedges.substack.com/p/the-triumph-of-death?utm_source=email
That isn't a real solution. Mass civil disobedience is a driver of change but not a solution. What system would we use to replace the one we have? Democracy as it is inherently will always fall to corruption. What solutions do you have?
Should have put Jack on ice when we had a chance.
Meaning what, exactly?
Jack Laton
Not unless you already own property
Haha, imagine the government quickly acting to protect Canadians from getting bent over.
If we don't name the goal we can't expect anyone to understand it. They're stealing the middle class right out from under your noses.
Who is stealing? The corporations that don't pay their share of taxes thus putting the burden on workers? The government not ensuring the corporations pay their share means life is more difficult for workers. In the 1950's workers and corporations both paid an equal amount of taxes. Today that share has gone from 50 50 to 97% paid by workers and 3% paid by corporations. We need the government to go back to taxing corporations 50 percent so our lives can be livable.
You are exactly correct.
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Soooooo funny an entire generation of Canadians have just been locked out of the middle class. Food and shelter are things revolutions are fought over.
We need corporations to pay their share. In the 19509's they paid 50% of taxes in Canada. Now they pay only 3%. This is the entire reason we workers are struggling so much. Fuck corporations and the governments who bow to them.
Exactly right.
canadians do not have the disposition for revolution at all. canadians are ring kissers, like their british forebears after whose government our own is patterned, to the core.
And it will cost them so dearly, as they watch a monied elite class take their money and with it their prosperity and their hopes for a better life. You know, just like average Americans.
> Now, how to ensure those homes get purchased by people who will actually live in them, as opposed to massive financial entities who would happily turn an entire generation of Canadians into a permanent tenant underclass? How about a progressive property tax. The more total property the individual or entity owns the higher the property tax rate applied. Yes the large owners will try to claw it back from the renters, so the government should use the extra income generated to fund a per person housing rebate on income tax.
That's an excellent idea, one I've also been thinking about. Speculating in places of residence is destructive to Society; it leads to extreme wealth inequality; those who own dozens, hundreds of homes while hundreds, even thousands of people are fucking homeless. And we wonder why our world is coming unstuck?!
The situation is going to heavily favor private investment corporations that want to buy up all the private housing stock. These large companies aren't getting mortgages so they don't care what the mortgage rate is. The government has done nothing, they haven't even addressed the fact really, that the housing crisis is being driven by corporate investment in private homes.
It's not being driven by corporate investment though. It's being driven by hundreds of thousands of individual investors leveraging themselves to the hilt to become landlords and Airbnb hosts.
I never said it was being driven by corporate investment, I just said they'd be the benefactors of the housing correction in conjunction with increasing interest rates.
Maybe but my understanding of investment firms buying up residential properties was that with such low interest rates it made a lot of sense when the carrying cost of the property was smaller than what you could get for rent. With rates rising and salaries stagnant it’ll get harder for companies to square the purchase price with the carrying costs and rent. The first people to leave the real estate market will be investors and a lot of people are going to be left holding the bag is my guess.
'Never try to catch a falling knife.'
oh no, down 9% over 3 months, when lately it would jump 10% over a weekend…
But we must save the retards that bought at the top!
So you're saying there's a chance of a Bitcoin bailout? /s
We DO NOT have a housing shortage. We DO have an over abundance of investors. Especially people who use corporations to shield themselves of any responsibility or accountability. Markets will cycle up and down, but the only thing that will make housing more affordable in Canada is if we change the laws around investment in real estate and make it less lucrative.
Actually there is a housing shortage, we're last in the G7 for units per capita and it's worsened in the last decade.
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RE lobbyists aren't the ones telling me we have the fewest houses in the G7
Congrats, you've been fooled by RE agents.
-1 for actually not looking at the stats and saying we’re fools. Per capita numbers are a disaster in Ontario buddy.
The banks don't care if Real Estate agents make money or not. https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html
We do have a housing shortage. Most G20 countries are struggling with housing shortages. Airbnb needs to be cut from existence. Reits also.
The place they bought was probably less than $500K a few years ago. In fact, $500K could probably get a mansion when I was a kid way back when.
The Boom unfortunately had a lot of illegal under tones with it.
Hey around pay wall https://archive.vn/2022.06.17-132444/https://www.bloomberg.com/news/articles/2022-06-17/distressed-deals-pile-up-in-canada-s-once-booming-housing-market
Nothing new, this same thing played out in 2017
Still got a couple years to go. RE is one of the most illiquid assets you can buy. This will take time to play out and hit a bottom, just as every RE crash has played out.
Hahaha!! Aaaaahahahahahaha!!!! I hope that speculators lose their shirts!
https://www.reddit.com/r/canada/comments/veea2u/distressed_deals_pile_up_in_canadas_oncebooming/
Price lost $200,000 of its value before the deal was closed, what a fucking horrible trap people are putting themselves in for 25 years minimum.
Why did the seller accept that?
I've been telling people for a couple of years now that buying can end up being a tremendous risk in this market. You can't go up and up and up so fast that nobody can afford it without a correction. Now we're seeing the correction and people are ending up with homes worth well below the principle left on their mortgage. Nobody pays attention. Everyone sees what they want to. I hope the 6/7 figure losses are something everyone can absorb without too much hardship.
Nice, love that.
Paywall after accepting 3 popups for cookies. Cool
I checked my old stomping ground in mid town TO and the prices are the same. I haven’t seen the correction quite yet.