Comments on: Five Important Market Insights Former Bank of Canada Governor Stephen Poloz Shared

By: Dennis_K

Dennis_K — Wed, 09 Nov 2022 17:01:31 +0000

I found Mr. Poloz’s comment about immigration (targets) putting a sound ‘floor’ under the housing market rather odd.

You want to put a ‘floor’ under housing prices (and rents, if not now, then very soon) that are already out of whack of local median incomes? Even if 65% of homeowners across the country don’t have a mortgage currently (data from earlier BD articles; but I wonder if these homeowners are actually all working Canadians), that’s another 35% who do. And for those who will need their own housing from this point forward, looking at the latest Housing Affordability Monitor produced by the National Bank of Canada (2022 Q2 report, dated August 16, 2022; you can find it online), for Toronto, the months of saving required for the down payment of a median non-condo residence (at a savings rate of 10% on a median income) is 382 – that’s 31.8 years – just for the downpayment. For Vancouver, it’s 472 months – 39.3 years – again, just for the downpayment.

Are the waves of newcomers (as of early November 2022, now at 1.5 million through to 2027; source: cbc.ca Nov. 8th), supposedly needed to support 1 million ‘unfilled jobs’, going to earn around the same median wages for their local areas as indicated in the report ($73k – $91k), or are all these 1 million jobs going to earn anywhere from $80k – $262k (or more) in qualifying income to support the prices (based on an urban composite of all home types within each area) as of the summer of 2022?

I respect Mr. Poloz and his contemporaries have much more knowledge about economics and finance than I do, but these simple facts seem much more applicable as ‘fundamentals’ to me.

By: Marlaine Rose

Marlaine Rose — Tue, 08 Nov 2022 21:07:12 +0000

Funny how someone in B.C. can make over one million profit on selling thier home, yet still qualify for triple gst rebates, oas supplement and other freebies.

By: ID

ID — Mon, 07 Nov 2022 18:26:25 +0000

1. Steve Poloz – 9th Governor of the Bank of Canada
In office June 3, 2013 – June 3, 2020.
2. In July 2017, Poloz raised the Bank of Canada’s key interest rate to 0.75%, the first interest rate increase in Canada in seven years.

Should I say he’s “The Guy Who Made This Mess” or it’s obvious?

By: Paul

Paul — Sun, 06 Nov 2022 01:39:14 +0000

From my 1989/1990 experience the recession in house prices will last 5 to 10 years. According to this site housing contributes 9% to the GDP which is way too much. Construction will slow significantly putting many in construction out of work furthering the recession. Rates may come down next year, but it cannot go back to the 2020 levels, or we will have this issue again.

By: JFreeman

JFreeman — Sat, 05 Nov 2022 18:49:47 +0000

Also.. The role of immigration I think can’t be understated. We need to really actually address it with our leaders. I work in the environmental field with a background in political science as well. In my opinion, … Massive immigration leads to social unrest if it happens too quickly AND.. it does nothing to address one of the biggest problems in our world – overpopulation. In fact, it only exasperates it extensively. And it doesn’t align at all with Trudeau’s supposed ‘green’ and CarbonNeutral credentials. There’s absolutely ZERO hope of him meeting his goals, especially with an extra 1/2 million coming every year. I think the dude is the perfect Manchurian candidate, honestly. He’s so feckless and gullible that he’s easily manipulated by financial elites in this country/big business lobby, who want the cheapest labour possible.

There’s no shortage of workers in this country. There’s a shortage of innovation and industrial automation. Wasting people on stupid, no-skilled jobs like fast food and retail is a waste of resources.

By: Fonzi

Fonzi — Sat, 05 Nov 2022 10:22:52 +0000

Fundamentals are super strong, we have strong fundamentals… who are trying to convince Mr. Poloz, yourself or we the little people?
Real estate is an emotionally driven market…. FOMO, abetted by super low interest rates. With population growth, demand will only fall so much. Fully commoditizing real estate has been a horrible failure.

By: Yoroshiku

Yoroshiku — Sat, 05 Nov 2022 02:56:53 +0000

‘Canada’s real estate market has froth and “bubble features”, but it’s ultimately supported by strong fundamentals.’ Which fundamentals are those? Money laundering, rampant speculation, commodification of housing and 20 years of artificially low interest rates?

By: J

Fri, 04 Nov 2022 20:13:07 +0000

He has to say the world isn’t ending to prevent panic. In the end, it is his opinions – and opinions can be wrong.

By: veeNM

veeNM — Fri, 04 Nov 2022 19:34:06 +0000

In reply to Chris.

a bit of a bubble, maybe …? just snug it?
he’s so is clueless it’s sickening and offensive.

By: Chris

Chris — Fri, 04 Nov 2022 18:20:46 +0000

He’s full of it.