Comments on: Canadian New Home Construction Pulls Back, Expected To Pull Back Further

By: Justin

Justin — Fri, 22 Sep 2023 05:03:39 +0000

At what point do we realize that real estate as an investment commodity has to end… or Canada will fall apart…

100% capital gains tax on 2nd+ home capital appreciation.

Tax 2nd+ home rental income to the point where it is only just above inflation

Make it completely undesirable to look at the real-estate market as a investment class.

Get people to invest their low unit to Canadian stocks and ventures, productive assets… not unproductive housing…

Use all that money for building non profit rental housing…

1 home per adult… that’s it. You want a cabin, that’s fine, but don’t expect to make money off it

By: Julian

Julian — Fri, 22 Sep 2023 00:06:28 +0000

Most people don’t realize preconstruction condos are priced higher than existing built units. This is because preconstruction investors became so confident that preconstruction units would appreciate to and above the price they bought it for in the time it got built, 3 to 5 years. Now that no expects this to happen anymore no one is buying. The investors don’t expect to be able make a buck when preconstruction is priced 30% over existing resale units, and live in buyers definitely aren’t going to pay a premium to have to wait three years. Developers can’t lower prices 30% because escalating costs and the price they paid for the land may have these inflated prices built in. One end of the rope has to break, interest rates, developers sitting on idle hands with high debt loads or what people are willing to pay. Otherwise nothing is going to change. Mt bet is it’s interest rates and what people are willing to pay as the housing shortage gets far worse still. We haven’t seen nothing get in my opinion unless interest rates drop a lot very soon.

By: Jay

Jay — Wed, 20 Sep 2023 12:33:11 +0000

Any stats on the assignment condos? Those are the hidden treasure trove of parasitic investors.

The fact that these contracts are never disclosed is crazy, probably a 300K buffer from the actual cost of a condo and the list price + over asking bids.

By: Jason Williams

Jason Williams — Tue, 19 Sep 2023 00:52:40 +0000

Time for governments Federal and/or provincial to start building housing again. It’s the only way to have affordable housing.

By: Marc

Marc — Mon, 18 Sep 2023 23:30:03 +0000

I work in a trade. I’ll tell you nobody’s listening to the boots on the ground. If you want to know what’s happening Ask the trades But beforewarned it’s scary. Builders are pulling back and creating The void on purpose. How is it There are framers and other trades not working right now. Canada is an absolute disaster. I have family in California. And you can’t even compare the 2. And we here all sorts of horror stories about what’s going on there, and it’s nothing compared to here.

By: Dennis_K

Dennis_K — Mon, 18 Sep 2023 21:51:16 +0000

So, despite federal incentives to increase housing construction, and provincially (at least in Ontario) the move to make more land available, and broad proclamations of a housing shortage, there’s a pull-back in building starts???

I thought the common mantra was that to address the affordability crisis, we just needed to build more (and affordability will magically reappear, at some point, somehow) — so how is it that if the ‘demand’ is there (and for sake of discussion, we’ll keep it to the demand for principal residences), the amount we’re building is starting to decline or slow down? It almost appears as if those who control the supply of homes, is deliberately keeping production lower in order to keep prices elevated.

Granted, BC and Ontario are seeing increases in these starts, but at what point does one look at this pan-nationally, and see that the affordability crisis is really driven
by liquidity?

By: Wex

Wex — Mon, 18 Sep 2023 18:21:31 +0000

All by design. Everything is rigged, from lotto to options trading. A collapse in home prices in Toronto, Van, Canada as a whole means the entire economy collapses and Canada heads into third world poverty territory. Canada is $9 trillion in debt, owes nearly $3 trillion to foreign creditors. Canada has some of the highest tax rates in the world so you cant tax anymore, when the spending gets cut (Never going to happen) then it will cascade into mainstreet – increased violence, rape, murder, theft etc… Remember when Canada avoided the 2008 collapse? I think we didnt.

By: Dale Ritch

Dale Ritch — Mon, 18 Sep 2023 17:07:33 +0000

Don’t forget that current housing starts mostly reflect condo presales from several years ago.

In another six months or so the starts will reflect presales from the period after interest rates were significantly increased.

This will result in a complete collapse of the GTA housing industry and massive layoffs of construction workers ushering in a nasty recession!

By: Mark Bayly

Mark Bayly — Mon, 18 Sep 2023 15:49:17 +0000

Importing another two million Uber drivers should solve all our problems