Comments on: Canadian Real Estate Resembles 80s Bubble, Higher Rates To Solve Supply Issue: BMO

By: Dhruba Ghosh

Dhruba Ghosh — Fri, 11 Feb 2022 14:45:11 +0000

In Brampton I hear all the radio stations creating a paranoia through advts from realtors and mortgage agents to rush and buy. Every home is sold over asking and I wonder bank is assesing these properies on notional growth. Its an unreal world and totally deterent to a socialistic economy like Canada used to be. Its like a 3rd world country where good housing is limited to priviledged few who could afford. Rest all will be living in rents or in dispecable living condition. The govt has to intervene and break the nexus of some people making all the money. The next generation wont forgive us for not making it nirmal.

By: Arthur

Arthur — Mon, 07 Feb 2022 15:31:33 +0000

Five year mortgage rate in 1981 was up to 22.50% – a rate like that now would solve the speculator problem for a few months

By: Sammy

Sammy — Mon, 07 Feb 2022 13:38:14 +0000

This could very well lead to the break up of English Canada…

By: Eveittia

Eveittia — Sun, 06 Feb 2022 19:21:24 +0000

Interest rates in Japan were 2.5% in 1989 following a long period of loose monetary policy that drove up asset prices. Ultimately it was the Bank of Japan raising rates 2.5 to 6% that brought down their housing market by 50% by 1991, which unfortunately did not recover for decades.

By: Tom

Tom — Sun, 06 Feb 2022 17:23:20 +0000

In reply to Tom Wolfe. The real shallow and arrogant person is the one that thinks people who lost their home ruined them. All 7 million people. The majority of losses were multiple property-owner investors. They didn't go back to the house they bought in another state, just to trash it before foreclosure. LOL.

By: GTA Landlord

GTA Landlord — Sun, 06 Feb 2022 17:21:14 +0000

In reply to Kat.

I think that’s why Canada’s per capita GDP growth is shot regardless of how it’s formed. The country is no longer able to correct the inefficiencies at this point.

Greece would be an apt comparison, except being a part of the EU forced austerity for the sake of rebuilding efficiency. Canadians would never vote to correct the issues, because it’s a painful adjustment. They would rather move towards an early grave, like a diabetic eating themselves into a sugar coma while complaining they don’t like the way insulin feels.

By: Ethan Wu

Ethan Wu — Sun, 06 Feb 2022 17:15:08 +0000

In reply to Ben. The data doesn't stop in 2019, it starts in 2019. If you can't read an X-axis label, maybe trying to debunk the top economist at one of the world's largest bank is a little over your head.

By: Jason Chau

Jason Chau — Sun, 06 Feb 2022 17:10:07 +0000

In reply to RM.

“lazy reporting” is what clowns say when they don’t like what the reporting says, and want it to fully reflect the padded walls of the room the reader built in their head.

Don’t even bother trying to explain how real interest rates work to people that are this dumb, it’s a waste of time.

By: simranjeet matharoo

simranjeet matharoo — Sat, 05 Feb 2022 23:08:12 +0000

The bubble is now so big, even a modest 25-30 percent correction may crash the market altogether, and any recovery would take decades.

By: questions guy

questions guy — Sat, 05 Feb 2022 18:24:01 +0000

it’s worse now, because rates will double, whereas rates went up 20% – 30% in 1989.

adjusted for inflation, the average house was under $500k

the paralells are absolutely justified