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>> All this is true and bad but the Canadian market is primarily driven by supply issues, not red tape. My point is that if you reduce the red tape (and deadwe
by TuringNYC 5y ago
>> All this is true and bad but the Canadian market is primarily driven by supply issues, not red tape.
My point is that if you reduce the red tape (and deadweight loss) there are actually people who want to sell, but wont sell if they are losing a ton of money on the sale. Reduce the loss and more supply appears.
In the US this is a huge issue. If you switch cities twice and sell each time, your entire downpayment has disappeared in fees/taxes. You literally have nothing left to buy your next home with. So people stick around in houses they dont want in cities without ideal jobs because they have no choice.
- smugma 5y agoWhen markets are rising so rapidly, there are very few people who might lose money on a sale. There’s a lot of fat in the process, but it’s not particularly relevant when prices are going up double digits each year.
- pmfgpmfg 5y ago
- dghlsakjg 5y agoThat isn’t what’s happening in the Canadian market is what we’re telling you. It is not that there are people that aren’t selling, it’s that there aren’t enough houses for the number of people in the country. House prices have risen enough to cover all of the fees, except that there is nowhere in the country you can move to where this isn’t happening.
- kelnos 5y agoUnless potential sellers are leaving the country or are choosing to rent after they sell, wouldn't more sellers also increase the number of buyers (because those sellers have to live somewhere else after they sell), and it all will end up being a wash? (And if they are choosing to rent after they sell, that just shifts unaffordable home prices to unaffordable rents, as rental demand increases without a corresponding increase in supply.)