Loading ...SHOCKING Canadian Real Estate Numbers
You wont read this on the mainstream news wires. Like everything else, the truth is being kept from you as the lies are rolled out 3 layers deep. But Canadian Real Estate is tied and stuffed like a Thanksgiving Turkey. Here is Garth Turners recent post over at The Greater Fool. Its a terrific read if you have ever been a keen follower of his R/E ramblings and going strong almost 20 years now. We are in for a world of hurt in Canada though and the hurting time is here as sales have dropped like a boat anchor off the proverbial cliff.
What comes next is….gulp. Is it this bad in your town too?
The Garth Turner of the 80’s is a different animal than the current iteration. He has terminal TDS. That doesn’t mean we shouldn’t listen to what he says.
Most of Trump’s controversial policies are correcting decades of mismanagement of the US. The nanny state has created an sector of the population that needs to get a grip on reality. Remember if America fails, it’s game over for the rest of us. Sure some of his stunts are irritating but that is the entertaining aspect of the ultimate showman.
Back to the Real Estate article. Housing was pumped by cartel money in the large Canadian urban areas. Money laundering. Housing costs rose in the surrounding areas. Layer that with insane regulations and delays. Over the past decade or so, the Bank of Mom and Dad funded bad purchases for their FOMO offspring. Now these wells of cash are becoming scarce.
The traditional starter SFH does not exist anymore. Luxury finishes galore increase costs at the lower end. The lack of skills (Trades) of the average young couple looking to get into the housing mkt is abysmal. I remember when most new construction had unfinished basements. The young family could over time expand into this area as the family grew and finances allowed. Gone is the 1200sq ft starter. They say it’s to densify the urban landscape.
If the price of housing collapses overnight it will affect the entire economy. A slow decline over a decade may be the answer. I look around me and see young people over spending on stuff that was not available to my cohort at that stage of life. Saving is a thing of the past as they see that the future is bleak. What happened to the goal of saving 10% of one’s income. University tuitions are a scam on top of all this. Debt burden for no reward unless in the STEM courses.
The way we finance housing where the terms come up for renewal every 5 years or so, creates uncertainty and stress. The US system is more stable if people make wise choices.
I rented a studio then a 1 bedroom apt until age 32 before my first purchase of a small townhouse condo with an unfinished basement. It was nothing special. I moved up the ladder from a humble beginning, drove old cars and went camping for my summer trips until I could afford otherwise. I lived well within my means.
Blaming Orange Man Bad for all our woes tells me that we have not adapted with the times and our political leadership has failed us for generations. I hear TDS through the day. I feel like telling them to analyze your life and fix your own problems.
Most of what I see is self inflicted and due to lack of critical thought.
My rant for the day, week or month.
A 25% decline in housing costs is just a start. Lowering the regulatory burden and other costs are necessary.
Cities have grown too large creating zones which are naturally more expensive to own close in the core, thus the workers must commute for an hour or more. Urban planning has sucked for decades.
EXCELLENT RANT COLUMBIA
YOU MAY BE THE NEW GARTH TURNER
THIS ONCE TOP NOTCH ANALYST LOSES ALL CREDIBILITY DUE TO HIS TDS
Ok I get that you hate him. Try to set that aside for the moment since shooting the messenger is a waste of your time. The reason I linked his article is because the statistics really are shocking. And they are warning us about someething in our collectve future we should probably be getting ready for.
An economic downturn at this juncture, a large scale period of job losses or an actual recession could turn the boat over in the real estate sector. This is the Wily Coyote moment as we sit suspended and unmoving over dead empty air space just waiting for that bad news to trickle in.
Chances are, you have lost more money on your homes value during this past year than you gained in all your silver and gold bets to date. By a long shot at that. We are living through what is being called the second biggest real estate crash in Canadian history. Prices are down coast to coast and the dive shows no signs of letting up. Check the charts in this next article. Uh-Oh!
Canadian Real Estate Is Crashing At One of The Fastest Rates Ever
https://betterdwelling.com/canadian-real-estate-is-crashing-at-one-of-the-fastest-rates-ever/
I welcome a needed housing correction but it is due to other factors than Orange Man Bad. Money laundering via the cartels, fed by FOMO and the Bank of Mom and Dad. The Feds and the Provincial leaders did this to us. It needs a correction.
The Country can not heal if the normal progression of family formation is stalled.
Depends how much one has invested in PM’s. The return the last 30 days could have paid for the original purchase price of our house 16 years ago. I have improved it since though.
I’ve said this before, the Boomer generation had tremendous luck being able to purchase a house under 3 times their family income. We need to get back to affordability.
Even the strata fees are way too high, $600- 1200 a month bite into the wallet for the starter home. Myself looking to downsize into a lock n go condo makes it hard to justify the move so we sit tight, that alone takes a lot of movement out of the game. Newbie real estate sharks will run out of monthly desk rent money at the office and go back under their rock crying.