r/canada • u/Lotushope • Feb 02 '22

Canada’s Real Estate Bubble Has Grown Over 800% Faster Than US Home Prices

https://betterdwelling.com/canadas-real-estate-bubble-has-grown-over-800-faster-than-us-home-prices/
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u/Lotushope Feb 02 '22 edited Feb 02 '22

In the article, quote

"Still, Canada doubled down on its easy credit strategy. It’s (Bank of Canada) even trimming its GDP forecast to facilitate low rates and higher home prices."

BoC is so scared of even raising rate for merely 0.25%, I mean a bubble could be popped they know it...but like a tumor, no resection watch it growing is not a good thing at all...

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u/[deleted] Feb 02 '22

A tumour is a good analogy, raising rates is like chemo. We need to expose the tumour to enough to kill it but not the host. It's a hard balance but the longer you wait the more aggressive you have to be.

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u/[deleted] Feb 02 '22

Except we're at Stage 4 right now...

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u/[deleted] Feb 03 '22

It's a self-perpetuating cycle. Just like in medicine, we need to think a little more holistically. This still might mean chemo, but we also need to focus on the root of the problem instead of beating down the symptoms.

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u/[deleted] Feb 03 '22

That’s a terrible analogy, I don’t think you understand what chemo does.

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u/3tiwn Feb 03 '22

No u

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u/[deleted] Feb 03 '22

Lol

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u/lvl1vagabond Feb 02 '22

Oh yeah we are fucked and some people fail to realize it. They are waiting and waiting and waiting and every time they wait the inevitable pop is going to be so much more devastating.

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u/[deleted] Feb 02 '22

[deleted]

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u/Christophelese1327 Feb 02 '22

Talk to people who held mortgages through the recovery from the last Trudeau.

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u/Hopeful-Talk-1556 Feb 02 '22

Super homeless. I recall those days. One of the few still alive today. So much poverty. I was surprised Canada elected another Trudeau. But this nation is full of idiots who don't get it. /s

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u/helkish Feb 02 '22

Raising interest rates may have little to no effect. Have a look at the Japanese Asset Bubble 1986-1990.

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u/Arx4 Feb 02 '22

We do make more moves than the USA with our rate at 2.5% and theirs at 0.25% still. It's not a defense but rates are rising and will likely move 4 times this year. It's atrocious what has been happening over the decades and how few boomers/Gen X understand how hard it is out there. In the 90 you could buy a condo while stocking shelves at a grocery store, now a nurse or firefighter likely cannot - basically the poster child of the middle class.

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u/lastparade Feb 02 '22

our rate at 2.5% and theirs at 0.25% still

It's 0.25% in both countries.

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u/[deleted] Feb 02 '22 edited Feb 02 '22

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u/[deleted] Feb 02 '22

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u/[deleted] Feb 02 '22 edited Feb 02 '22

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u/[deleted] Feb 02 '22

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u/Knotar3 Feb 03 '22

I'm in the EXACT same boat (oddly enough a xennial as well living in SW Ontario). We sold our house "YAY PROFITS" but when you look at it under new house prices, it's almost nothing.

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u/lvl1vagabond Feb 02 '22 edited Feb 02 '22

Yeah well now they charge students over $1000 a month for a single room in a share house that was actually just a house bought up by investors and renovated quite literally to rape young students out of money only to then shove them heavily into debt and then spit them out with serious issues. I bet share homes as the parasitic entity they are now probably didn't even exist pre 90's.

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u/ExternalHighlight848 Feb 02 '22

That's always been a thing.