Although not impossible, difficult to see a crash with NIMBYS/greenbelts/immigration.I've been hearing about a 'housing burst' since 2001. During this anticipated burst, I've seen housing reach levels beyond what I could imagine.
So you tell me?
Canada's #1 industry is Real Estate. Can't see the government letting it's top revenue generator crash.Although not impossible, difficult to see a crash with NIMBYS/greenbelts/immigration.
Foreign speculators have the cash, so riding out the lows is all a part of it for them. It's the same for most domestic speculators and they can use depreciation as a write off come tax time. The people who it really hurts is the guy who thinks this is his ticket in, so he buys a second property, and then the market tanks and he's left holding a property that he can no longer afford. There aren't too many in this boat, so I'm just not seeing his point fully. Once again, this has always been an issue for some, mortgaging themselves to the max and remortgaging for the wrong reasons too. The percentage of people in this boat is too low to have any effect on the market, and let's face it, this crash would have happened when rates peaked, not when they're coming down.I get it people have been foreshadowing the collapse of the housing market since the 2000's and that hasn't happened at all. In fact its been the inverse.
But there is some economic merit to what this guy is saying. A lot of people bought property in 2020/2021 when the interest rates were so low. Mostly investors. If they are still holding these properties and took out large debt they are going to be looking at significantly higher monthly payments. There is no doubt that real estate speculation, both foreign and domestic, has fueled a lot of the rise in property prices from the past decade. Now that many have fled, the prices need to 'adjust' to what people can afford.
“Land prices are high, it is said, higher than anything would warrant. ‘Why, the workingmen cannot afford to pay at the rate demanded for these tiny outside lots,’ asserted one man recently. The same thing was said here twenty years ago, answer the pioneers; others of us know that it was repeated ten years ago and five years ago, and our children and our children’s children will hear the same tale of woe decades hence.”
- R McDougal, BC Real Estate, 1911.