Comments on: Canadian 5 Year Bond Yields Surge To 2023 High—Bad News For Home Prices

By: Brickenomics

Brickenomics — Mon, 27 Feb 2023 14:51:40 +0000

The target areas to deal with are the issues that affect the. 85%. High rents. And high food costs , versus low earnings These do not compute
If we need to bring immigration to canada then we need to guarantee a cost of living geared to income. Not a cost of living in devoid of income
And it must be based on these 2 main structures
For if we cannot afford to put a reasonable roof over our heads. And put a reasonable meal on the table we have nothing to offer new immigrants. Let alone our existing population
These are the fundamentals of life
And the building blocks , everything else will fall into place behind these
At the present time average rents are occupying as much as 45% of gross incomes And food is bordering on 13%
This is not manageable and now we have interest rates that are compounding the issues

By: Average Man

Average Man — Thu, 23 Feb 2023 15:12:10 +0000

WTF do you mean “bad news?” How are we defining bad?

By: Julian

Julian — Thu, 23 Feb 2023 11:03:41 +0000

what you wrote is very wishful. It appears that you are the owner of a home bought at a peak. High rates and QT will fix the broken housing market that the Bank of Canada created with its depressed rates and QE

By: Juliab

Juliab — Thu, 23 Feb 2023 10:52:55 +0000

Hehehe, what you wrote is very wishful. It appears that you are the owner of a home bought at a peak. High rates and QT will fix the broken housing market that the Bank of Canada created with its depressed rates and QE

By: Reality cheque

Reality cheque — Thu, 23 Feb 2023 02:32:54 +0000

In reply to Nobody. Why must the government do anything? The notion that a group of paid employees work in the best interest of the 99.9% of the population is hilarious.

By: Nick

Nick — Wed, 22 Feb 2023 21:18:44 +0000

“… with more potential buyers waiting for rates to cool down, house prices will inevitably surge …”

Nonsense. Demand is even lower than supply because people can’t afford to pay the 2022 prices sellers are demanding.

By: Don cox

Don cox — Wed, 22 Feb 2023 21:15:33 +0000

In reply to Nobody. Don't you think that getting off oil would be a better thing to do

By: Jason Chau

Jason Chau — Wed, 22 Feb 2023 20:47:33 +0000

In reply to Nobody. Even the BIS said that was wrong, but okay. Canada's head of bank regulations fully said cheap credit was sapping investment from productive areas, and so did RBC—but what do they know.

By: Nobody

Nobody — Wed, 22 Feb 2023 13:50:44 +0000

The idea that higher rates will bring down housing prices is a mistake. While it may temporarily push out buyers from the market, it will increase rent and the price of new builds in return. Furthermore, there will be fewer new build houses in the market, and with more potential buyers waiting for rates to cool down, house prices will inevitably surge due to accumulated inflation on commodity prices and fewer new build houses.

The current inflation has several main reasons: supply chain issues, money injection during COVID, processes put in place during the pandemic that have not been removed, and geopolitical issues with Russia and China causing Ukraine to be kicked out of the supply market and raise the price of shipping from other Eastern suppliers. All currencies have lost more than 30 percent of their value, but we don’t see it because they are compared with each other.

In conclusion, rate hikes will only make people uncomfortable and inject poverty in the long term. The Bank of Canada and politicians must work on bringing down oil prices and shipping costs. A rate hike will only make the situation worse, and it is crucial to take action to address the root causes of inflation.