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It will end in either a correction of the price of housing, or a correction on the currency those houses are priced in to bring it back in line with the rest of

It will end in either a correction of the price of housing, or a correction on the currency those houses are priced in to bring it back in line with the rest of the world, because from my understanding the economics when adjusted for wages in Canada is the number that is way out of whack. Place your bets!

carlgreene 4y ago
> to bring it back in line with the rest of the world Can you explain what you mean by this? The USA and Canada are both quite low when comparing median home price to median income[0] 0: https://www.numbeo.com/property-investment/rankings_by_country.jsp https://www.numbeo.com/property-investment/rankings_by_count...
- beiller 4y ago
  I see here showing Canada as #7 on the list (House-price-to-income ratio) https://www.statista.com/statistics/237529/price-to-income-ratio-of-housing-worldwide/ https://www.statista.com/statistics/237529/price-to-income-r... I live in Canada and have a very high wage and I feel like it is not affordable, but maybe I'm just too cheap!
  - cameronh90 4y ago
    That seems to be rate of change since 2015?
tjr225 4y ago
I’m curious where exactly in the rest of the world you think these cheap homes are in major metropolitan areas? https://www.cnbc.com/2019/04/12/hong-kong-average-house-price-hits-1point2-million.html https://www.cnbc.com/2019/04/12/hong-kong-average-house-pric... Canada doesn’t even make it to the top 3 Edit: I got a bit more curious so found a more up to date article and Van makes it to 3rd: https://www.bosshunting.com.au/lifestyle/real-estate/most-expensive-housing-markets/ https://www.bosshunting.com.au/lifestyle/real-estate/most-ex... However, you can see that expensive housing is not something unique to Canadian cities.
- beiller 4y ago
  From my reading online, Canada is in the top spots for the most expensive housing when adjusted for income. https://www.statista.com/statistics/237529/price-to-income-ratio-of-housing-worldwide/ https://www.statista.com/statistics/237529/price-to-income-r...
  - tjr225 4y ago
    Even that chart puts Canada just ahead of the US and Europe for that ratio... I think we maybe just missed the boat on cheap land...
frozenport 4y ago
I don't see a "correction" anytime soon. There are no vacant units and Canada is rapidly filling in with immigrants. Areas like Toronto are booming. Demand is good, supply lags. This could be the state of affairs for decades.
- beiller 4y ago
  There already was a correction. People only care about the monthly cost, and rates going up 0.5% has just shaved a large chunk off the cost of the property which is not yet realized in the sales due to extremely low sales volume. Any failure to keep up with USA's rate hikes will result in CAD going down vs. USD in my opinion. If Canada's central bank does keep up with QT coming from USA, it will attack the cost of property via large monthly payments. I don't see any way around that. In comment to supply, the number of new housing units being finished in 2021/2022 is at record highs. Immigration has stopped due to covid, yet the price keeps going up. I don't buy the tight supply hypothesis. I think its just due to hoarding and speculation. Why sell when your asset goes up 20%/yr. Many people I know have 2+ properties here (don't forget cottages)
nostrademons 4y ago
Or feudalism. No guarantee that the majority of the population will be able to afford houses at all; in many societies, you have a small landowning class (< 10% of the population) that owns literally all the land, and then a large number of serfs who must work for survival.
- harambae 4y ago
  People can still vote in both the US and Canada, and if the supermajority couldn't afford homes the taxes on homeowners could go much higher.

carlgreene 4y ago

> to bring it back in line with the rest of the world Can you explain what you mean by this? The USA and Canada are both quite low when comparing median home price to median income[0] 0: https://www.numbeo.com/property-investment/rankings_by_country.jsp https://www.numbeo.com/property-investment/rankings_by_count...

beiller 4y ago
I see here showing Canada as #7 on the list (House-price-to-income ratio) https://www.statista.com/statistics/237529/price-to-income-ratio-of-housing-worldwide/ https://www.statista.com/statistics/237529/price-to-income-r... I live in Canada and have a very high wage and I feel like it is not affordable, but maybe I'm just too cheap!
- cameronh90 4y ago
  That seems to be rate of change since 2015?

tjr225 4y ago

I’m curious where exactly in the rest of the world you think these cheap homes are in major metropolitan areas? https://www.cnbc.com/2019/04/12/hong-kong-average-house-price-hits-1point2-million.html https://www.cnbc.com/2019/04/12/hong-kong-average-house-pric... Canada doesn’t even make it to the top 3 Edit: I got a bit more curious so found a more up to date article and Van makes it to 3rd: https://www.bosshunting.com.au/lifestyle/real-estate/most-expensive-housing-markets/ https://www.bosshunting.com.au/lifestyle/real-estate/most-ex... However, you can see that expensive housing is not something unique to Canadian cities.

beiller 4y ago
From my reading online, Canada is in the top spots for the most expensive housing when adjusted for income. https://www.statista.com/statistics/237529/price-to-income-ratio-of-housing-worldwide/ https://www.statista.com/statistics/237529/price-to-income-r...
- tjr225 4y ago
  Even that chart puts Canada just ahead of the US and Europe for that ratio... I think we maybe just missed the boat on cheap land...

frozenport 4y ago

I don't see a "correction" anytime soon. There are no vacant units and Canada is rapidly filling in with immigrants. Areas like Toronto are booming. Demand is good, supply lags. This could be the state of affairs for decades.

beiller 4y ago
There already was a correction. People only care about the monthly cost, and rates going up 0.5% has just shaved a large chunk off the cost of the property which is not yet realized in the sales due to extremely low sales volume. Any failure to keep up with USA's rate hikes will result in CAD going down vs. USD in my opinion. If Canada's central bank does keep up with QT coming from USA, it will attack the cost of property via large monthly payments. I don't see any way around that. In comment to supply, the number of new housing units being finished in 2021/2022 is at record highs. Immigration has stopped due to covid, yet the price keeps going up. I don't buy the tight supply hypothesis. I think its just due to hoarding and speculation. Why sell when your asset goes up 20%/yr. Many people I know have 2+ properties here (don't forget cottages)

nostrademons 4y ago

Or feudalism. No guarantee that the majority of the population will be able to afford houses at all; in many societies, you have a small landowning class (< 10% of the population) that owns literally all the land, and then a large number of serfs who must work for survival.

harambae 4y ago
People can still vote in both the US and Canada, and if the supermajority couldn't afford homes the taxes on homeowners could go much higher.