Bank of Canada says it is not seeing the decline in house prices it had expected

[CdnFox]

https://archive.ph/sIYKj

The Bank of Canada says higher interest rates have not dragged down home prices as much as expected, because a shortage of homes in the country is keeping values elevated.

 

This really is beyond frustrating - everybody else in the entire world knew that there wouldn't be a big drop because there is a lack of homes, even with the interest rate changes.

Worse - with fluctuating rates developers are slowing down on projects and building fewer homes - setting us up for increased price pressures in just a few years.

So when i hear the bank saying stuff like "gosh - we had no idea this wouldnt' substantially bring down house prices" it really feels like they've got absolutely no clue what they're doing or how money works.  Other than perhaps a very short term blip there was no chance of it substantially lowering prices.

[ExFlyer]

The cost of land, materials, labour and red tape is still going up so...how can the cost of the house go down?

[QuebecOverCanada]

The number of new housing projects is going down, and many projects that were ongoing are cancelled.

The number of immigrants and foreigners who are here temporarily is at an all-time high.

Supply and demand. There is a big conspiracy or arrangement against the working/middle class to bring the price of housing up, so that people work more hours to pay their rent/mortgage.

[Michael Hardner]

4 hours ago, QuebecOverCanada said:

 

1. Supply and demand.

2. There is a big conspiracy or arrangement against the working/middle class to bring the price of housing up, so that people work more hours to pay their rent/mortgage.

1. Not all of the demand is for housing, some of it is for real estate assets.

2. Is that conspiracy called capitalism?

[eyeball]

4 hours ago, ExFlyer said:

The cost of land, materials, labour and red tape is still going up so...how can the cost of the house go down?

By smacking down the irrational exuberance of homeowners - the same way central banks do when working people get too uppity about higher wages to keep up with inflation.  Keep jacking the interest rate up - beatings will continue yadda yadda.

[ExFlyer]

2 hours ago, eyeball said:

By smacking down the irrational exuberance of homeowners - the same way central banks do when working people get too uppity about higher wages to keep up with inflation.  Keep jacking the interest rate up - beatings will continue yadda yadda.

I cannot make sense of your post.

"irrational exuberance of homeowners" ???

"people get too uppity about higher wages to keep up with inflation." ????

" beatings will continue yadda yadda." ???

What  does that mean? What are you trying to say??

 

 

 

[CdnFox]

Until we build enough homes to satisfy the needs of our population there is zero chance of rent or ownership being affordable for most people.

It's just that simple .

[eyeball]

20 minutes ago, ExFlyer said:

I cannot make sense of your post.

"irrational exuberance of homeowners" ???

"people get too uppity about higher wages to keep up with inflation." ????

" beatings will continue yadda yadda." ???

What  does that mean? What are you trying to say??

It seems like homeowners get the blame for high property values and workers get fingered for wage induced inflation and so the BOC jacks up interest rates more, aka continues the beatings (until morale improves).

Meanwhile the rate at which the wealth and income gap widens is going off the charts.

What isn't there to get?

[ExFlyer]

23 minutes ago, eyeball said:

It seems like homeowners get the blame for high property values and workers get fingered for wage induced inflation and so the BOC jacks up interest rates more, aka continues the beatings (until morale improves).

Meanwhile the rate at which the wealth and income gap widens is going off the charts.

What isn't there to get?

I have never heard anywhere that a homeowner is blamed for the high price of housing. In fact, it is that the buyer, outbidding each other that drives prices up. Homeowners are happy with over zealous bidders.

Workers demanding higher wages does increase inflation. They want more money and the employer has to charge more for his product or service to pay those wages.

Blaming wage and income gap is foolish. There has always been and will always be wage gaps. Some jobs are just more valuable than others. Employers pay more for more valuable work. Want more, then get a skill and job that pays more.

BOC only has one way to curb inflation, that is to increase interest rates to prevent people from borrowing money for things they want, not need.

 

Edited October 26, 2023 by ExFlyer

[Aristides]

There is a housing shortage. A shortage of anything means higher prices.

[CdnFox]

2 hours ago, Aristides said:

There is a housing shortage. A shortage of anything means higher prices.

And yet this escaped the BoC.

[QuebecOverCanada]

7 hours ago, Michael Hardner said:

1. Not all of the demand is for housing, some of it is for real estate assets.

2. Is that conspiracy called capitalism?

1. Why is real estate becoming an asset? Because with the policy the federal government is going for, we are having much more demand than supply. Increasing drastically the numbers immigration wise while not loosening up regulations or forcing with federal laws the creation of more housing is increasing the price of housing. It's on purpose. And investors are cashing in on it.

2. Yes.

Edited October 27, 2023 by QuebecOverCanada

[CdnFox]

Canada Can’t Double Housing Output. It Can’t Even Stop It From Dropping: BMO

https://betterdwelling.com/canada-cant-double-housing-output-it-cant-even-stop-it-from-dropping-bmo/

If photos of policymakers in construction vests were new homes, Canada’s housing supply would be booming. Unfortunately, that’s not the case. BMO Capital Markets is warning investors that residential construction investment is plummeting. The drop may indicate the slowdown in new homes could drop even further in the near-future. The bank quips, perhaps the government should try stopping the decline in new home construction before promising to double it. Ouch.

The current federal gov't policy is murdering housing construction while their immigration policy is increasing demand. This one-two whammy is going to kill us and every year it'll be harder to recover from.  And that doesn't just affect buying a home, that affects rental prices directly as well.

Hope you young'ns out there didn't want to have a place to live or anything. 

[Michael Hardner]

3 hours ago, QuebecOverCanada said:

1. Why is real estate becoming an asset? Because with the policy the federal government is going for, we are having much more demand than supply.  

 

1. That's some of it.

[QuebecOverCanada]

9 hours ago, Michael Hardner said:

1. That's some of it.

That's almost all of it.

We have the least amount of housing per capita of the G7, and increasing the demand drastically through mass immigration (legal or not) never seen in our country has caused soaring prices in every province.

If you shut the valve of mass immigration, the prices of real estate go down. It happened at first during the first months of COVID in 2020 when Trudeau shut down any air travel to Canada, then the price went back up with the lowest interest rates in our history and a massive immigration increase in 2021 and 2022 (still ongoing this year).

[ExFlyer]

13 hours ago, CdnFox said:

And yet this escaped the BoC.

Don't understand your comment.

What can BOC do about shortage of housing?They don't buy land. They don't buy material. They don't hire workers. They don't build houses.

They do control interest rates to try and prevent fools from borrowing money they cannot afford to pay back.

[ExFlyer]

13 hours ago, QuebecOverCanada said:

1. Why is real estate becoming an asset? Because with the policy the federal government is going for, we are having much more demand than supply. Increasing drastically the numbers immigration wise while not loosening up regulations or forcing with federal laws the creation of more housing is increasing the price of housing. It's on purpose. And investors are cashing in on it.

2. Yes.

1. Real estate has always been an asset, back to medieval times. You own the land, you are rich.

2. Capitalism is a conspiracy? Or is it that people that can, do, and people that cannot should not?

48 minutes ago, QuebecOverCanada said:

That's almost all of it.

We have the least amount of housing per capita of the G7, and increasing the demand drastically through mass immigration (legal or not) never seen in our country has caused soaring prices in every province.

If you shut the valve of mass immigration, the prices of real estate go down. It happened at first during the first months of COVID in 2020 when Trudeau shut down any air travel to Canada, then the price went back up with the lowest interest rates in our history and a massive immigration increase in 2021 and 2022 (still ongoing this year).

 

Where did you get that info??? Please provide source.

Edited October 27, 2023 by ExFlyer

[QuebecOverCanada]

@ExFlyer

Quote

Among the G7 countries (U.S., U.K., France, Germany, Japan, Italy, Canada), Canada has the lowest number of homes per 1,000 residents: 424 homes per 1,000 residents. This compares to the current average of 471 homes per 1,000 residents in the G7 countries.Jun 29, 2022

https://www.landingrealty.ca/articles/G7-average-house

Please use Google. I shouldn't have to give you a source to tell you the Sun's hot.

Quote

 

1. Real estate has always been an asset, back to medieval times. You own the land, you are rich.

2. Capitalism is a conspiracy? Or is it that people that can, do, and people that cannot should not?

 

1. There's a substantial difference between having productive assets...  and hoarding, limiting the supply while increasing the demand.

2. Capitalism is used and also abused as a means for many wealthy people to crush the working/middle class. Yes, wealthy people conspire to make sure they stay at the top. It is not new, it's why communism was so prevalent in the last century; abusers went too far many times in the History of mankind. FDR was right to institute legislation to make sure its abuses were mitigated by legislation.

Edited October 27, 2023 by QuebecOverCanada

[QuebecOverCanada]

34 minutes ago, ExFlyer said:

Don't understand your comment.

What can BOC do about shortage of housing?They don't buy land. They don't buy material. They don't hire workers. They don't build houses.

They do control interest rates to try and prevent fools from borrowing money they cannot afford to pay back.

They maintained at record lows the interest rates for a decade thus inflating the demand. They are a huge part of the issue, conjugated with misgovernance by the Liberals and their goals to push for 100 million people in Canada by 2100.

[ExFlyer]

8 minutes ago, QuebecOverCanada said:

They maintained at record lows the interest rates for a decade thus inflating the demand. They are a huge part of the issue, conjugated with misgovernance by the Liberals and their goals to push for 100 million people in Canada by 2100.

Clearly world economics is way above your head.

Be grateful our prime rate is way lower than the American.

[ExFlyer]

29 minutes ago, QuebecOverCanada said:

@ExFlyer

https://www.landingrealty.ca/articles/G7-average-house

Please use Google. I shouldn't have to give you a source to tell you the Sun's hot.

1. There's a substantial difference between having productive assets...  and hoarding, limiting the supply while increasing the demand.

2. Capitalism is used and also abused as a means for many wealthy people to crush the working/middle class. Yes, wealthy people conspire to make sure they stay at the top. It is not new, it's why communism was so prevalent in the last century; abusers went too far many times in the History of mankind. FDR was right to institute legislation to make sure its abuses were mitigated by legislation.

https://www.statista.com/statistics/867687/total-number-dwellings-per-one-thousand-citizens-europe/

Disagrees with your take. Canada, on the world stage, is quite normal. Besides, there is no law or anything that says everyone deserves a house.

1. Have no clue what that means LOL

2. Show me an economic system that is not used and abused?

Edited October 27, 2023 by ExFlyer

[QuebecOverCanada]

26 minutes ago, ExFlyer said:

https://www.statista.com/statistics/867687/total-number-dwellings-per-one-thousand-citizens-europe/

Disagrees with your take. Canada, on the world stage, is quite normal. Besides, there is no law or anything that says everyone deserves a house.

1. Have no clue what that means LOL

2. Show me an economic system that is not used and abused?

Ok you got severely confused here by your ignorance.

What is the G7? How does it differ from the concept of Europe?

---

1. Productive assets are assets that contribute to grow wealth, generate income, create value.

Quote

Productive assets are those that generate profits, rents or income. Non-productive assets are those that don't produce cash flow but are held for other purposes like price appreciation, tax purposes, political etc.

2. I'm not going to, because it doesn't exist. And your point was that there was no conspiracy involving capitalism, you have to prove that. Your take is borderline naive. This is the most preposterous thing I've read in a while except from the guy who said Quebec was partaking to this day in ethnic cleansing.

38 minutes ago, ExFlyer said:

Clearly world economics is way above your head.

Be grateful our prime rate is way lower than the American.

I think we should be grateful here in Canada, with our lower incomes, higher rent/housing and all our economic woes. Great results that you're cheerleading for.

[ExFlyer]

35 minutes ago, QuebecOverCanada said:

Ok you got severely confused here by your ignorance.

What is the G7? How does it differ from the concept of Europe?

---

1. Productive assets are assets that contribute to grow wealth, generate income, create value.

2. I'm not going to, because it doesn't exist. And your point was that there was no conspiracy involving capitalism, you have to prove that. Your take is borderline naive. This is the most preposterous thing I've read in a while except from the guy who said Quebec was partaking to this day in ethnic cleansing.

I think we should be grateful here in Canada, with our lower incomes, higher rent/housing and all our economic woes. Great results that you're cheerleading for.

G7 = nothing.

 

I am not cheering, we, in Canada have chosen to be come consumers and buyers and not producers and makers and hence, we do not deserve high wages associated with that. We deserve what we get. Here is an idea.... why not have a guaranteed income for all...then it will all be better????

You live in Quebec....what do you know other than you get what you want  LOL Hey...separate...the rest of Canada will be better for it

Edited October 27, 2023 by ExFlyer

[Michael Hardner]

3 hours ago, QuebecOverCanada said:

1. That's almost all of it.

We have the least amount of housing per capita of the G7, and increasing the demand drastically through mass immigration (legal or not) never seen in our country has caused soaring prices in every province.

2. If you shut the valve of mass immigration, the prices of real estate go down. It happened at first during the first months of COVID in 2020 when Trudeau shut down any air travel to Canada, then the price went back up with the lowest interest rates in our history and a massive immigration increase in 2021 and 2022 (still ongoing this year).

1. Well, places without high immigration have also seen bumps.  Further to that, domestic models have not ascertained any true "cause".  One could argue immigration fuels speculation but there are other factors there.
2. I don't remember prices taking any significant downturn no.  

[eyeball]

2 hours ago, ExFlyer said:

They do control interest rates to try and prevent fools from borrowing money they cannot afford to pay back.

This makes it sound even like more collective punishment. And what about the foolish banks that foolishly shovel money out the door?

Oh right, the taxpayer has their back.