JamesM

I don't the know the data but I think a lot of people in Toronto take loans to sustain their standard of living secured on their properties. These loans are at an all time high I believe (but need to check)

What's a sustainable wage? In real terms wages are lower than they were 30 years ago and had a decade of stagnation to about 2018. Assets have always grown more than wages through history which is what keeps rich people rich and poor people poor.

Immigration is the main economic engine- there simply aren't enough people along the US border to build Canada into a leader in any industry. I think money laundering is another lever of the economy that no one wants to talk about.

Canada is very liberal. I believe our immigration is primarily a solid spread of folk from developing world countries. Why they want to move to another developing world country that probably has more barriers to "success" than where they came still baffles me? But then I remember it's for the children.

beckiwoo

Def not the route I would go down. Even if $100k was not enough for a down payment. I would keep the money in an account until needed for something big

dbd33

Surely houses in Canada are primarily bought by Canadians working in Canada. Some people cannot afford to buy but plenty can, that's why houses cost what they cost.

I'm a big spender on both cosmetic dentistry and additional cars. Soon I'll have a full set of teeth. One can never have a full set of cars.

OrangeMango

I am by far no socialist, so I don't think there is anything against dentistry, expensive cosmetic dentistry or additional cars.

However housing, decent acceptable housing is in my thinking a basic right, even though legally it may not be that way.

One thing that bothers me about the housing market in Canada is the endless overpaying. I have not seen this in the UK to that tune, not even in London. I think that should be made illegal. If the price advertised, is the price offered, the offer must be met, and I'd put that into law. Yes, this might be seen as a socialist regulation, but again, one buys a house to live in.

It's not like one is overpaying cosmetic dentistry by 30% just to get the appointment sooner or the work faster done.

I do understand that in business some things are offered in bidding, in an auction. Even vintage and rare cars are offered in an auction. However if a property is listed, or a car is listed for a price than it's not an auction. Estate agents are not auctioneers in my mind.

Overpaying a property by offering way above the listed price should only be reserved to auctions. In the UK a sale on an auction is often clearly advertised that it's an auction.

But again, that's only my opinion. Opinions might differ as we learned in the corona crisis and on corona mesures.

Shard

Presumably you haven't heard of the practice of gazumping in England?

OrangeMango

It's most likely happening there as well, but as said, I don't think that overpaying by 300 K is usual. Maybe only in the high luxury market.

JamesM

You haven't seen his teeth. It's not implausible that he is in fact involved in this practice!

JamesM

At this point I think the market is speculative and irrational. Not too far off bitcoin where fear of missing out is driving it more than anything.

dbd33

I've done exactly that. I go to the dentist I do because, although she charges more, she has convenient appointments. Other people achieve the same by taking their teeth to Cuba or Mexico.

"decent acceptable housing" isn't related to ownership. Council houses (many of them anyway) were decent acceptable housing. Buying a house is a desire separate from wanting a decent roof over one's head. The latter is certainly a reasonable want for someone working full time.

I know. This is a car auction in progress. I'm dbd. 1966 Lotus Elan S2 for sale on BaT Auctions - ending May 12 (Lot #47,846) | Bring a Trailer


That's easily resolved, just call all sales "auctions", that's what they've been in Canada since I've been here. A house is for sale, offers are made, the seller signs them back, it goes round and round until the last potential buyer is left. Very much like "offers over" as routinely used in Scotland.

dbd33

Alas, progress to date has been to throw the "English teeth" in the bin. New ones are always coming "new month".

Shard

After hearing about crazy price rises in TO last month, I was surprised to see a report on CBC a couple days ago saying the the market in April had in fact stalled.

scrubbedexpat091

“Vancouver’s housing market will adjust to reopening borders and development in fundamentals over the next three years,” said Batch in the report. “Buyers will face higher prices and see their budgets decline, while a flow of newcomers will place pressure on the rental market. In essence, the market will face the same sorts of affordability and housing shortage challenges that pre-existed the shock of COVID-19.”

https://vancouversun.com/news/higher...es-cmhc-report

Thought it was an interesting article. Based on a CMHC report.

Danny B

207,000 jobs lost in April but housing prices are still red hot. How does that work?

https://www.bnnbloomberg.ca/canada-l...pril-1.1600572

scrubbedexpat091

Those who can afford to buy houses are in jobs not as affected by the pandemic and job losses?

On a reddit discussion on this article like half of the 207,000 jobs lost were in the 18 to 24 age group, who may not be in the real estate market?

JamesM

I saw the same.

One swallow doesn't make a summer- in isolation one month's data doesn't mean too much but I'll be looking keenly for next month's report.

The data was from TREB who typically are notoriously bullish about the housing market which was why it caught my eye.