The Canadian economy slipped into a "technical recession" last quarter. For many households in Toronto and Vancouver it's felt like a recession for a couple of years now.
Good Article but it mught be time to revise how we look at housing. Nobody seems to be asking the question of how much new housing do we need if the population remains stable? At the moment we are completing a massive number of new units which were started on the assumption that we had massive immigration coming. It may be time to accept that the number of sales are tied to the usual demands created by death, disease, divorce and relocation instead of massive population growth.
Housing at the end of the day does not create wealth for the nation, it is fundamentally a consumable (unless we are selling our housing to foreigners outside the country. It is time to focus on weath generation and raising the GDP per capita instead. The only thing that BC has grown is the provincial debt and the size of the civil service.
Isn't this what's supposed to happen to fix rampant inflation? We can't have our cake and eat it too... it's no different than fighting cancer with chemotherapy (if you get the analogy)
Country is pretty much screwed. GDP/capita growth in past 10 years of liberal regime 1.4%. That is over 10 years which is pretty much lowest in OECD. US 18.4%. Housing is still out of reach for most young Canadians and will likely stay that way. Sad.
Although mortgage rates impact the housing market, today the rent versus buy calculus and the slowdown in population growth are likely more decisive in both Vancouver and Toronto.
Not sure how this changes in the short run, given a lack of immigration, restrictive foreign purchasing rules, a stagnant economy and the ongoing treatment of trade with Canada by the bad faith US admin. The Feds are working on solutions but results may not materialize for a few years. However, if one simply extrapolates the price slope from 2010, the current average price is pretty close to the intercept. Housing is not far from being fairly valued now by this metric. Is it getting close to looking at buying opportunities?
Good Article but it mught be time to revise how we look at housing. Nobody seems to be asking the question of how much new housing do we need if the population remains stable? At the moment we are completing a massive number of new units which were started on the assumption that we had massive immigration coming. It may be time to accept that the number of sales are tied to the usual demands created by death, disease, divorce and relocation instead of massive population growth.
Housing at the end of the day does not create wealth for the nation, it is fundamentally a consumable (unless we are selling our housing to foreigners outside the country. It is time to focus on weath generation and raising the GDP per capita instead. The only thing that BC has grown is the provincial debt and the size of the civil service.
Isn't this what's supposed to happen to fix rampant inflation? We can't have our cake and eat it too... it's no different than fighting cancer with chemotherapy (if you get the analogy)
Country is pretty much screwed. GDP/capita growth in past 10 years of liberal regime 1.4%. That is over 10 years which is pretty much lowest in OECD. US 18.4%. Housing is still out of reach for most young Canadians and will likely stay that way. Sad.
Although mortgage rates impact the housing market, today the rent versus buy calculus and the slowdown in population growth are likely more decisive in both Vancouver and Toronto.
Not sure how this changes in the short run, given a lack of immigration, restrictive foreign purchasing rules, a stagnant economy and the ongoing treatment of trade with Canada by the bad faith US admin. The Feds are working on solutions but results may not materialize for a few years. However, if one simply extrapolates the price slope from 2010, the current average price is pretty close to the intercept. Housing is not far from being fairly valued now by this metric. Is it getting close to looking at buying opportunities?