Is the housing bubble about to burst
- Thread starter K Douglas
- Start date
Supply and demand. If the demand goes up but the supply doesn't keep pace, prices go up
If we didnt import so many goddamned people, this would not be an issue.
True to a large extent, but also must consider with slowing immigration, developers will factor that in their analyses and build less accordingly.
The made money on hst but that is gone, resale homes do not generate much revenue except for companies and landlords. Why do you think PP was so angry about the capital gains hike? He has 11 properties,
Single family homes hold out better. Here is the root of the main reason why besides massive immigration.
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Hopefully not. My renewal is next year in June and im set in stone on selling (single family home)
There may be a financial crisis, but the banks, insurers, and possibly homeowners will get bailed out. The cost will be moderately high inflation, anemic growth, and the loonie becoming the new peso. Carney will dial up immigration again claiming this is the only economically sound lever he has to fight the tariffs, but it will only drive asset prices up while putting a downward pressure on wages as inflation mounts. As long as the liberals have the winning coalition of 905 boomers and young shrieking socialists who are easily whipped into panics and frenzies, as this past elections shows, they have nothing to worry about.
Realistically, though, that is still very unlikely. Home prices won’t collapse. There’s simply too much capital sloshing around in the system that sees Canadian real estate as a safe-haven. Short of a global depression or a global catastrophic conflict, the harsh truth is that Canadian real estate has become unmoored from local economic realities. In other words, if default rates were to soar to catastrophic levels like 30%, there are no shortage of family offices, private equity firms, and sovereign wealth funds that would buy up the housing stock if prices began to correct even 10%.
Realistically, though, that is still very unlikely. Home prices won’t collapse. There’s simply too much capital sloshing around in the system that sees Canadian real estate as a safe-haven. Short of a global depression or a global catastrophic conflict, the harsh truth is that Canadian real estate has become unmoored from local economic realities. In other words, if default rates were to soar to catastrophic levels like 30%, there are no shortage of family offices, private equity firms, and sovereign wealth funds that would buy up the housing stock if prices began to correct even 10%.
Have homeowners ever been bailed out? If I recall correctly, the last time this happened, the banks and insurers got bailed out, the homeowners did not.
No I don't think so nor should they.
Declaring bankruptcy or just walking away from the mortgage are the options.
Houses for most people are bought to live in. Investors take risk like any other investment. Governments shouldn't be bailing them out.
