Comments on: Canadian Housing Affordability Hits Unsustainable Level: BoC Index

By: dave Frazer

dave Frazer — Mon, 02 Jan 2023 04:47:30 +0000

Wait till the real panic starts. Probably around April or May 2023 when all the spring listings fail to sell. Currently there is no reason for any sensible person to buy anything.
A fall from the peak of 40- 50 % is likely. Just to bring us back to about 3 times earning which is a historical norm in lots of real estate markets, we need to fall
70 %, its possible. Lots of real estate and real estate linked employment from lawyers to car salesmen and construction workers will happen and force distressed sales all this year.
Immigration eventually wil bring a rise in demand, but new immigrants will not buy in a falling market, and that could last for quite a while

By: Zalzon

Zalzon — Sun, 01 Jan 2023 20:06:02 +0000

In reply to Zahir Singh. Bank of Canada is not supposed to be doing any such thing. The free market is supposed to set prices of housing and all else, not some central banker sitting in an ivory tower price fixing and money printing. That interference in the economy is the root cause of malinvestments and moral hazard. We need to get rid of CMHC and all such institutions designed to offload the market gambling losses of banks onto the backs of taxpayers, wage earners, savers and pensioners.

By: Jim FitzGerald

Jim FitzGerald — Fri, 30 Dec 2022 17:07:22 +0000

I couldn’t agree more…It’s a shame we continue to create social programs to prop up incomes when the tax payers are pressed to the point of breaking. I am tired of being the “bag holder” for my governments blunders. Throw money at the problem is increasing the velocity of the train wreck of this economy.

By: Rick Abrams

Rick Abrams — Thu, 29 Dec 2022 20:23:34 +0000

Did they offer any explanation or would that be too embarrassing?

By: Sam

Sam — Thu, 29 Dec 2022 16:54:37 +0000

People that already live and work in Canada think this is not ok? Doesn’t matter.
According to our minister of immigration: “Look folks, it’s simple to me: Canada needs more people.”

By: Dar Robbins

Dar Robbins — Thu, 29 Dec 2022 14:25:40 +0000

In reply to Mortgage Guy.

How can our educated population be so ignorant?
The two most nefarious institutions that caused the unaffordability home crisis in Canada are the BoC and CMHC.
1) The Bank of Canada’s sole “raison d’être” is adding liquidity to the banking system to further extend credit and maintain their profitability.
2) There’s no reason that the taxpayers should be the bagholders of bad credit insured by CMHC.
Both these institutions should have been abolished long ago.

By: Zahir Singh

Zahir Singh — Thu, 29 Dec 2022 12:27:55 +0000

Bank of Canada has a fiduciary duty to ensure that house prices do not drop.
Canada NEEDS housing, it is the country’s economic engine and must be supported by policy and 0% interest rates as needed.

By: Jov

Jov — Thu, 29 Dec 2022 09:37:05 +0000

In reply to Mortgage Guy. Both central banks and inflation are government disruption of free market and direct responsible for what's going on.

By: Arif Rajabali

Arif Rajabali — Wed, 28 Dec 2022 23:25:45 +0000

Interest rate for a 5 year mortgage Will hit 8 -9% as was the case in the 1990s. House prices will only fall 10-15%. Not enough to make the houses affordable as wages cannot go up 10-15% year on year.

So young people move back into your parents homes so you can survive and save for your future.

Gone are the days of borrowing to spend.

By: J

Wed, 28 Dec 2022 22:26:59 +0000

List of countries with better quality of life and cheaper housing: anywhere else. Brain drain won’t be just the US. All doors are open for young Canadians moving away. Good luck everyone. Call me when housing is back to 5x income for a decent house me.