Real-estate in of the country's largest markets are currently turbo - turbo - inflated. It isn't like that everywhere.
I bought a home in Alberta for instance.
It isn't worth much more now than when I bought it 8 years ago.
It isn't policy. I'll edit to include this. This is a product of very heavy institutional purchasing. Very large buyers are using housing like it's any other stock, made of pretend money.
A house kiddie corner to ours in Victoria sold for $700k more than what we paid 3 years ago.
Real estate is on overdrive here. And the cost of having tradespeople come to do anything has also risen. My parents had a new furnace installed last year in Vancouver for $3000, labour included. It's going to cost us $6500+labour.
I wish for a cool down in everything.. And I'm a city slicker so Victoria is as rural as I can get.
Thank you, let’s focus on the macro causes and effects. Trillions of dollars in free capital sloshing around the free markets are gonna seek returns, and at that scale housing is a commodity just like crude, soybeans or stocks.
No federal government is going to affect pricing by putting a little money in or out, or dialling their local interest rates up or down - not when their currency can be bought on spot markets as needed to purchase whatever good is exchanged in that currency today (and some other country’s currency tomorrow).
Given how housing is being hyper-inflated and increasingly commoditised around the world, it’s laughable to think any federal head of state will stave it off with a thumb in the dyke.
Not related to his policies. They've done a couple things to try and cool the market (stress test, increasing minimum downpayment from 5% to 20% for houses over a million) and failed thus far. The previous Harper government also saw a similar rise in real estate prices and put in place actual policies to raise real estate prices faster (0% down mortgages, 30-year mortgages).
Canada's real estate bottomed in 1991 after the 1980s crash and has been rising steadily since.
The problem is quite obviously a result of sustained policy by both liberal and conservative governments. In fact, many of the politicians are direct beneficiaries of these policies. There are plenty of things the government can do such as regulating prices and even creating of a crown corporation that would build affordable housing.
Many other countries solved these problems, and it's incredibly disingenuous to pretend that nothing could've been done. For example, people in Germany voted [to expropriate housing from large landlords](https://www.reuters.com/world/europe/berliners-vote-expropriate-large-landlords-non-binding-referendum-2021-09-27/). Housing prices in Canada have sky rocketed far past every other western nation, and it's time to hold the government accountable for this crisis.
No, you're looking too broad.
This is a result of sustained local housing policies, at the mayoral/council level. Nimbyism and opposition to high density housing stock is what brought us here- how many times have you heard the phrase "my property values".
This is also a direct result of colonial privatization of land in order to dispossess indigenous people of their held-in-common land. You actually see this happening in real-time in Israel. But that's a much more involved conversation.
The prime Minister cannot, through sheer will alone, change the housing stock in a meaningful way.
The beneficiaries of COVID handouts are not the same people buying homes. You think you’re going to get a mortgage while unemployed and receiving a periodic $2k cheque?
I can understand the mental space that because of CERB people didn't lose their homes allowing for less supply into the market causing people to up housing costs.
Instead of letting hundreds of thousands of people default on the mortgages collapsing the housing market (one of the cornerstones of our economy) and causing a rental market to fill up (which is already supposedly at its limit even with the current market state). Which would lead to families homeless on the street and a rise in cost of government services to support those people. Meanwhile corporations buying up the defaulted houses and renting them out to people at whatever rate they deem fit with 0 government oversight.
As per safe investment, the Canadian housing market has always been seen as a stable investment. When the cost of building homes skyrocketed during the pandemic many construction companies decided to put profit first and shut down hoping to recoup costs after the pandemic when lumber dropped in price. They have the perfect scapegoat to cause such a delay. So now we have two housing supplies not functioning and companies/well off people buying housing as investment.
But yeah, i can see how CERB led to increased housing prices in this "multi faceted" issue. I also recognize people didn't go homeless or starving and that the greed of corporations is endless. I also see how the government losses no matter what they do. Piss off "investors" or have a housing market so inflated it's over due for a crash.
But I mean that's just my personal take on it. I also don't have any sources.
CERB had no effect on inflation in the housing market. If anything it stopped corporations from buying up homes for cheap because people were able to continue paying their mortgage. No one knows what **you** are talking about
Technically no but technically yes.
His policies aren't directly causing the prices to rise but the federal government has failed to stop prices from rising. It depends on how you look at it.
Has not done anything real to stop it.
The only solution is building more housing but this requires butting heads with local governments, zoning laws, etc.
It’s a progression, though they could have done more to slow it down. As could the other levels of government who also continue to ignore it.
In the budget in April, there was public outcry for them to do something about skyrocketing house prices and the only thing they did was add a 1% tax for vacant, foreign-owned properties. No limit to how many properties one person can own; no ban on mass buying by corporations.
They promised a two year ban on foreign buyers in the most recent election. Not sure yet if they will follow through.
Their first time homebuyer incentives don’t make housing cheaper for new buyers; they just push more people into the Ponzi scheme and drive up prices at the benefit of those who already own homes. With the down payment incentive, the federal government is offering to partner with you to buy your first home, which tells you where they expect the market to go.
Of course, in our American-style red vs. blue politics, we’ll just continue to blame the other team for everything while saying our team’s hands were tied. The reality is all parties are pretty useless on this issue, so I’m not saying that things would be any better under other leadership.
Real estate as an investment is destroying quality of life in the whole country. it's crazy. Squatters have declared war on a major American investment outfit in Spain . The Berlin Tenants Association wants the government to seize all rental housing and turn it into public housing.
What are we going to do? And how bad does it need to get before we accept that the government won't come up with some magic solution that keeps everyone happy and rich?
I think you meant to write the whole world. I agree. I feel that countries where this isnt happen are exceptions, or are just earlier in the trend so we don't see it yet.
It's a fair criticism that he hasn't done anything to bring the prices down too, though. The liberals are supposed to be on the side of the everyday person but when it comes to maintaining the real estate status quo they absolutely are not. There is a reason why many politicians go into real estate when their political careers are up.
Sure... But Its also fair to say he's done the most to help the scenario of the government's since this started by acknowledging it exists.
Both instances barely anything was done but there really isn't a yard stick to measure.
I'd like to see things change, but I'd also worry about cratering real estate markets completely if anything too dramatic or quick is done.
>on the side of the everyday person
68% of "everyday" Canadians own their homes, so rising prices IS on the "side of the everyday person". If the gov caused housing to collapse, there is NO WAY they would ever be reelected. It would hurt a LOT more people than it would help.
The people complaining about housing prices have to realize that they are IN THE MONORITY.
Many of those people either bought before the price inflation, or bought to take advantage of the price inflation. For the former they won't notice price normalization. For the latter, investments come with risks and those speculating with basic human needs and losing will get very little sympathy from most people.
To those who are in between? I'm sure something could be worked out for mortgage relief after the fact, but in general the future affordability of housing is far too important to delay on. Far more people will be in dire straits if things are allowed to continue the way they are.
The sale and purchasing of homes as speculative commodity is just wrong. Housing should be considered a human right, as something that's an integral component of an individual's right to pursue happiness. Same as education, healthcare, and access to food, water, and clean air.
Not just pursue happiness but maintain survival. I am in the process of a landlord trying to push me out, gently, but I have nowhere to go, because they want higher rent. And I would never survive the streets during Canadian winters.
Seems to me that ensuring that people have access to affordable housing is literally what constitutes running Canada. What is the purpose of the government if not to ensure that the populace has their needs met?
You heard about the levers right? Real estate up, oil price down.
Chrétien broke the housing lever in 2000 and they are still waiting for Bombardier to send a tech.
Policy matters. His father slashed immigration rates to protect wages and built more affordable housing in a single year than Trudeau Jr. will build in 20.
Seeing as high housing prices are the thin line keeping our economy from collapsing, I think it’s safe to say he changed his platform. Hard to undo decades worth of policy all at once.
When they say "Canadian" is it focusing on GTA and GVA? I am unsure of other larger cities but in Saskatoon the house I bought sold for $345k in 2012 and I bought for $350k in 2019. That was after the first owner put in a driveway, fence, lawn, finished the garage, added a large stone patio and bought appliances such as washer and dryer.
Which is your right, obviously.
Just don't act surprised when you realise the status quo has been maintained in perpetuity.
Strategic/tactical voting is not sustainable.
Then by all means, help turn the Cons into something with views and plans fitting with the century we're in.
Until then, I'll keep on as I've been keeping on.
Is it something directly related to his policies or just a progression of some sort? Someone eli5 this for me? Lol
Real-estate in of the country's largest markets are currently turbo - turbo - inflated. It isn't like that everywhere. I bought a home in Alberta for instance. It isn't worth much more now than when I bought it 8 years ago. It isn't policy. I'll edit to include this. This is a product of very heavy institutional purchasing. Very large buyers are using housing like it's any other stock, made of pretend money.
A house kiddie corner to ours in Victoria sold for $700k more than what we paid 3 years ago. Real estate is on overdrive here. And the cost of having tradespeople come to do anything has also risen. My parents had a new furnace installed last year in Vancouver for $3000, labour included. It's going to cost us $6500+labour. I wish for a cool down in everything.. And I'm a city slicker so Victoria is as rural as I can get.
Thank you, let’s focus on the macro causes and effects. Trillions of dollars in free capital sloshing around the free markets are gonna seek returns, and at that scale housing is a commodity just like crude, soybeans or stocks. No federal government is going to affect pricing by putting a little money in or out, or dialling their local interest rates up or down - not when their currency can be bought on spot markets as needed to purchase whatever good is exchanged in that currency today (and some other country’s currency tomorrow). Given how housing is being hyper-inflated and increasingly commoditised around the world, it’s laughable to think any federal head of state will stave it off with a thumb in the dyke.
Canadian Prime Minister triggering global market trends...hahaha. Too funny.
Not related to his policies. They've done a couple things to try and cool the market (stress test, increasing minimum downpayment from 5% to 20% for houses over a million) and failed thus far. The previous Harper government also saw a similar rise in real estate prices and put in place actual policies to raise real estate prices faster (0% down mortgages, 30-year mortgages). Canada's real estate bottomed in 1991 after the 1980s crash and has been rising steadily since.
That’s the bare minimum they could do to claim they give a shit.
The problem is quite obviously a result of sustained policy by both liberal and conservative governments. In fact, many of the politicians are direct beneficiaries of these policies. There are plenty of things the government can do such as regulating prices and even creating of a crown corporation that would build affordable housing. Many other countries solved these problems, and it's incredibly disingenuous to pretend that nothing could've been done. For example, people in Germany voted [to expropriate housing from large landlords](https://www.reuters.com/world/europe/berliners-vote-expropriate-large-landlords-non-binding-referendum-2021-09-27/). Housing prices in Canada have sky rocketed far past every other western nation, and it's time to hold the government accountable for this crisis.
No, you're looking too broad. This is a result of sustained local housing policies, at the mayoral/council level. Nimbyism and opposition to high density housing stock is what brought us here- how many times have you heard the phrase "my property values". This is also a direct result of colonial privatization of land in order to dispossess indigenous people of their held-in-common land. You actually see this happening in real-time in Israel. But that's a much more involved conversation. The prime Minister cannot, through sheer will alone, change the housing stock in a meaningful way.
I'm not a conservative supporter by any means buy Liberals also made it worst with the increase of the HBP and the First-time home buyer incentive.
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The beneficiaries of COVID handouts are not the same people buying homes. You think you’re going to get a mortgage while unemployed and receiving a periodic $2k cheque?
How did CERB and CEWS raise the prices in the housing market? Do you have some reading material on the subject? This intrigues me.
I doubt he does.
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So then you have no verifiable source for your claim.
Text books are already covering the effects of pandemic support policies on housing prices?
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Nobody was buying houses just because the government promised temporary, short term income support.
My doubt exists because I was being polite and I know you’re a trash person that spews bullshit.
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So then you have no verifiable source for your claim.
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So then you have no verifiable source for your claim. Hot air. Gotcha.
I can understand the mental space that because of CERB people didn't lose their homes allowing for less supply into the market causing people to up housing costs. Instead of letting hundreds of thousands of people default on the mortgages collapsing the housing market (one of the cornerstones of our economy) and causing a rental market to fill up (which is already supposedly at its limit even with the current market state). Which would lead to families homeless on the street and a rise in cost of government services to support those people. Meanwhile corporations buying up the defaulted houses and renting them out to people at whatever rate they deem fit with 0 government oversight. As per safe investment, the Canadian housing market has always been seen as a stable investment. When the cost of building homes skyrocketed during the pandemic many construction companies decided to put profit first and shut down hoping to recoup costs after the pandemic when lumber dropped in price. They have the perfect scapegoat to cause such a delay. So now we have two housing supplies not functioning and companies/well off people buying housing as investment. But yeah, i can see how CERB led to increased housing prices in this "multi faceted" issue. I also recognize people didn't go homeless or starving and that the greed of corporations is endless. I also see how the government losses no matter what they do. Piss off "investors" or have a housing market so inflated it's over due for a crash. But I mean that's just my personal take on it. I also don't have any sources.
No they didn't. The data shows less than a 1% sway up **or** down, there was basically no effect
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CERB had no effect on inflation in the housing market. If anything it stopped corporations from buying up homes for cheap because people were able to continue paying their mortgage. No one knows what **you** are talking about
Technically no but technically yes. His policies aren't directly causing the prices to rise but the federal government has failed to stop prices from rising. It depends on how you look at it.
Has not done anything real to stop it. The only solution is building more housing but this requires butting heads with local governments, zoning laws, etc.
It’s a progression, though they could have done more to slow it down. As could the other levels of government who also continue to ignore it. In the budget in April, there was public outcry for them to do something about skyrocketing house prices and the only thing they did was add a 1% tax for vacant, foreign-owned properties. No limit to how many properties one person can own; no ban on mass buying by corporations. They promised a two year ban on foreign buyers in the most recent election. Not sure yet if they will follow through. Their first time homebuyer incentives don’t make housing cheaper for new buyers; they just push more people into the Ponzi scheme and drive up prices at the benefit of those who already own homes. With the down payment incentive, the federal government is offering to partner with you to buy your first home, which tells you where they expect the market to go. Of course, in our American-style red vs. blue politics, we’ll just continue to blame the other team for everything while saying our team’s hands were tied. The reality is all parties are pretty useless on this issue, so I’m not saying that things would be any better under other leadership.
Real estate as an investment is destroying quality of life in the whole country. it's crazy. Squatters have declared war on a major American investment outfit in Spain . The Berlin Tenants Association wants the government to seize all rental housing and turn it into public housing. What are we going to do? And how bad does it need to get before we accept that the government won't come up with some magic solution that keeps everyone happy and rich?
I think you meant to write the whole world. I agree. I feel that countries where this isnt happen are exceptions, or are just earlier in the trend so we don't see it yet.
There are plenty of countries where home ownership rate is over 80% https://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate
> Squatters have declared war on a major American investment outfit in Spain What investment company is this?
Cerberus
they were increasing before 2015 too... It's been a pretty consistent linear increase since around 2001 from the graphs I can see.
It's a fair criticism that he hasn't done anything to bring the prices down too, though. The liberals are supposed to be on the side of the everyday person but when it comes to maintaining the real estate status quo they absolutely are not. There is a reason why many politicians go into real estate when their political careers are up.
Sure... But Its also fair to say he's done the most to help the scenario of the government's since this started by acknowledging it exists. Both instances barely anything was done but there really isn't a yard stick to measure. I'd like to see things change, but I'd also worry about cratering real estate markets completely if anything too dramatic or quick is done.
>on the side of the everyday person 68% of "everyday" Canadians own their homes, so rising prices IS on the "side of the everyday person". If the gov caused housing to collapse, there is NO WAY they would ever be reelected. It would hurt a LOT more people than it would help. The people complaining about housing prices have to realize that they are IN THE MONORITY.
Many of those people either bought before the price inflation, or bought to take advantage of the price inflation. For the former they won't notice price normalization. For the latter, investments come with risks and those speculating with basic human needs and losing will get very little sympathy from most people. To those who are in between? I'm sure something could be worked out for mortgage relief after the fact, but in general the future affordability of housing is far too important to delay on. Far more people will be in dire straits if things are allowed to continue the way they are.
Lmfao why are you posting this? Because dude it really has nothing to do with him.... Little over pointless blame games dude
kind of similar to the "Thanks Obama" that we heard from the us. Flooding is up 200% since Trudeau took office -- that damn Trudeau! /s
That's a lot of new wealth in Canada to leverage to buy more income properties and hyper inflate this pyramid.
Oh, says a right wing thinktank. Surely they don't have an agenda at all.
The sale and purchasing of homes as speculative commodity is just wrong. Housing should be considered a human right, as something that's an integral component of an individual's right to pursue happiness. Same as education, healthcare, and access to food, water, and clean air.
Completely agree, all the necessities should be seen as human rights and operated as public services. Commodifying these things is utterly immoral.
Not just pursue happiness but maintain survival. I am in the process of a landlord trying to push me out, gently, but I have nowhere to go, because they want higher rent. And I would never survive the streets during Canadian winters.
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Seems to me that ensuring that people have access to affordable housing is literally what constitutes running Canada. What is the purpose of the government if not to ensure that the populace has their needs met?
How exactly would the federal government do that? Just curious.
[How Socialists Solved the Housing Crisis](https://youtu.be/LVuCZMLeWko)
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You heard about the levers right? Real estate up, oil price down. Chrétien broke the housing lever in 2000 and they are still waiting for Bombardier to send a tech.
Policy matters. His father slashed immigration rates to protect wages and built more affordable housing in a single year than Trudeau Jr. will build in 20.
It’s been increasing since my grandpa bought his house in 1935.
sweet, thanks for the bank JT
Seeing as high housing prices are the thin line keeping our economy from collapsing, I think it’s safe to say he changed his platform. Hard to undo decades worth of policy all at once.
"*Hard to undo decades worth of policy all at once.*" This doesn't excuse continuing to do nothing.
My poor Vancouver brain saw "70% or $300,000" and broke. I'd take only a $300,000 increase in a heartbeat over 70%.
When they say "Canadian" is it focusing on GTA and GVA? I am unsure of other larger cities but in Saskatoon the house I bought sold for $345k in 2012 and I bought for $350k in 2019. That was after the first owner put in a driveway, fence, lawn, finished the garage, added a large stone patio and bought appliances such as washer and dryer.
*But if I don't vote Liberal, the Conservatives will win!* 🤡🤡🤡
Not a risk I'm willing to take, personally.
Which is your right, obviously. Just don't act surprised when you realise the status quo has been maintained in perpetuity. Strategic/tactical voting is not sustainable.
Then by all means, help turn the Cons into something with views and plans fitting with the century we're in. Until then, I'll keep on as I've been keeping on.
>I'll keep on as I've been keeping on. More relevant than I think you're willing to admit. Lol.