The issue is the fact Canadian real estate is seen as an investment. This is the case because our governments keep doing things to prop up the prices instead of doing things to increase supply of housing or to reduce the demand to drop the prices. If Canada deported 1,000,000 immigrants then housing prices would start going down and investors would get out of the market. Trudeau keeps signaling new policies that will increase housing prices so speculators get in the market.
For nearly 15 years, the Bank of Canada (Canadian Fed) has kept interest rates as low as they can go. This means banks are handing out mortgages like candy at very generous rates. Couple this with government incentives which only help the rich (first time homebuyers deal) and the fact that we import 1% of our total population every year and you have our ridiculous housing bubble.
The solution is simple: raise interest rates and lower immigration to replacement levels. That's it. That kills the incentive to sit on properties as prices cease to skyrocket and supply becomes available as Boomers die off.
This has already started as interest rates are up nearly 500% over the last three years and we're starting to see vacant houses (and land) come back onto the market.
The Liberal government, of course, is doing everything in their power to create a supply/demand crisis by both increasing immigration (of people who can't afford homes, for some reason) and creating Federal "housing programs" which will take up land that could have been used by private developers, and take five times as long as they should to develop it, while going far over on costs.
The issue is the fact Canadian real estate is seen as an investment. This is the case because our governments keep doing things to prop up the prices instead of doing things to increase supply of housing or to reduce the demand to drop the prices. If Canada deported 1,000,000 immigrants then housing prices would start going down and investors would get out of the market. Trudeau keeps signaling new policies that will increase housing prices so speculators get in the market.
When our politicians say immigration is a must and then proceed to stop housing development or put pricing caps... Yeah, that happens lol.
This is the correct answer.
For nearly 15 years, the Bank of Canada (Canadian Fed) has kept interest rates as low as they can go. This means banks are handing out mortgages like candy at very generous rates. Couple this with government incentives which only help the rich (first time homebuyers deal) and the fact that we import 1% of our total population every year and you have our ridiculous housing bubble.
The solution is simple: raise interest rates and lower immigration to replacement levels. That's it. That kills the incentive to sit on properties as prices cease to skyrocket and supply becomes available as Boomers die off.
This has already started as interest rates are up nearly 500% over the last three years and we're starting to see vacant houses (and land) come back onto the market.
The Liberal government, of course, is doing everything in their power to create a supply/demand crisis by both increasing immigration (of people who can't afford homes, for some reason) and creating Federal "housing programs" which will take up land that could have been used by private developers, and take five times as long as they should to develop it, while going far over on costs.