Bryan Posted September 15, 2014 Report Posted September 15, 2014 How is the average house cost $400,000? What is it minus Toronto, Vancouver and Montreal? This is a lot more of the story than people are giving credit. Sky high prices in the hottest markets drive the averages up in a way that makes it look like they are telling a story that does not apply in the rest of the country. The avg price in Manitoba is $265k. Quote
Argus Posted September 15, 2014 Author Report Posted September 15, 2014 (edited) Bullshyte. You got $1.5M for NY? http://www.trulia.com/home_prices/New_York/New_York-heat_map/ I said New York, not Manhattan. I can get a place in Brooklyn, Queens, the Bronx of Staten Island a lot cheaper than that. Not when it consists primarily (80%) in (3) markets hundreds of miles apart. There are home builders in every community. I have yet to see how their costs are higher than their counterparts in the US. Besides, the highest costs are in the built-up areas, not in more rural areas. It's not the cost of credit but its volume and application of use. When everyone down south is hanging out a shingle that means plenty of remodeling/building which drives costs/supply. Seen no information that Americans are remodeling or building at a higher rate than we are either. Edited September 15, 2014 by Argus Quote "A liberal is someone who claims to be open to all points of view — and then is surprised and offended to find there are other points of view.” William F Buckley
Argus Posted September 15, 2014 Author Report Posted September 15, 2014 Nice cherrypick. Prices in St. John's have skyrocketed due to Oil. More demand than supply. Let's check oh lets say NB with nonresource economy ballooning the market....hmmmm $170k...Halifax.... $280k...interesting $400k. And the average in the US is $200k. If I wanted to cherry pick I'd use really low cost areas of the US Quote "A liberal is someone who claims to be open to all points of view — and then is surprised and offended to find there are other points of view.” William F Buckley
Moonbox Posted September 15, 2014 Report Posted September 15, 2014 (edited) And the average in the US is $200k. If I wanted to cherry pick I'd use really low cost areas of the US Check out Cleveland or Detroit for a laugh. You could trade your 8 year old car in for a down payment. Regardless, none of what's been said so far really speaks to the real reason why the prices continue to rise. This is a textbook market bubble, with price increases not being supported by the fundamentals behind them (mainly prosperity and rising wages). The prices in Vancouver and Toronto haven't been driven by better paying and more jobs in those areas. They've been driven by fantastically cheap borrowing and by a coinciding influx of money from real-estate speculators (both small-scale and large). When interest rates drop, mortgage costs decrease, making it easier for people to buy more expensive homes and they invariably do just that. The real-estate investors know this and start snatching places up, hoping to either profit on quick flips or on rentals, driving prices up even further. At this point average Joe starts to clue in to what's going on and starts making similar plays. Up the prices go. Of course this can't go on forever. Eventually the costs become prohibitive at even today's cheap borrowing rates. At this point condo developers end up having vacant units and Mom & Pa find their house flipping project selling at at break-even or a loss. Even worse, eventually the interest rates are likely to go up. At this point those heavily financed investment properties start becoming prohibitively expensive to carry and people can't afford to purchase them anymore anyways. We all know what happens next and it's long, long overdue in Canada. Edited September 15, 2014 by Moonbox Quote "A man is no more entitled to an opinion for which he cannot account than he is for a pint of beer for which he cannot pay" - Anonymous
bush_cheney2004 Posted September 15, 2014 Report Posted September 15, 2014 This is a lot more of the story than people are giving credit. Sky high prices in the hottest markets drive the averages up in a way that makes it look like they are telling a story that does not apply in the rest of the country. The avg price in Manitoba is $265k. Yep...that's just how the math will always work in Canada. "Average" will mask a lot of variation across the country. Frankly, some Americans watching HGTV productions out of Toronto are astounded at the prices being paid for the "privilege" of living in a small, semi-detached, run down home "close to transit". A two car garage, treble bath, and good size yard drives the price even higher (< $700,000 ?!). No wonder that some of the poor dears also want an income generating apartment in the basement, which is in such demand, it spawned another HGTV program ! Quote Economics trumps Virtue.
waldo Posted September 15, 2014 Report Posted September 15, 2014 the poor dears it's so unlike you to be critical of Canada/Canadians living/life style. Quote
overthere Posted September 16, 2014 Report Posted September 16, 2014 A reason that Canadian homes cost more to buy is that they cost more to build. Start with basements.....in much if not most of the USA they don't have them. $20k to $40K(unfinished) right there. We have to put our water and sewer deeper to avoid frost. Site costs are higher since you have to dig a big hole and backfill it. Foundations must be deeper to prevent frost heaving, or you must have piles installed, both an additional cost. Lots of insulation in walls and roofs is critical. Windows and doors must be better. Furnaces have to be bigger, more costly and have extensive ductwork. Use of natural gas means an extra utility installed that is not found in many US homes. And... labour costs are higher here for trades. Quote Science too hard for you? Try religion!
cybercoma Posted September 16, 2014 Report Posted September 16, 2014 A lot of materials are more expensive here too. Quote
overthere Posted September 18, 2014 Report Posted September 18, 2014 Nobody has touched on why average prices are so much lower overall in the US. It's because so many people live in trailers there. Quote Science too hard for you? Try religion!
Argus Posted September 18, 2014 Author Report Posted September 18, 2014 Nobody has touched on why average prices are so much lower overall in the US. It's because so many people live in trailers there. Uh huh. http://www.condo.com/For-Sale/5620-Pinnacle-Heights-Circle-Odessa-FL-Unit-301-80307191 Quote "A liberal is someone who claims to be open to all points of view — and then is surprised and offended to find there are other points of view.” William F Buckley
overthere Posted September 18, 2014 Report Posted September 18, 2014 Uh huh. http://www.condo.com/For-Sale/5620-Pinnacle-Heights-Circle-Odessa-FL-Unit-301-80307191 Luxury. I can get you into a nice manufactured home for 1/3 the price. You'll have to supply your own used appliances for the front yard. Quote Science too hard for you? Try religion!
Argus Posted September 20, 2014 Author Report Posted September 20, 2014 Luxury. I can get you into a nice manufactured home for 1/3 the price. You'll have to supply your own used appliances for the front yard. Will it have a pool, a pond, central air, and a walk-in closet in the master? Quote "A liberal is someone who claims to be open to all points of view — and then is surprised and offended to find there are other points of view.” William F Buckley
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