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The combination of high nominal prices and nornal-ish rates is what results in a high monthly outlay, that's what everyone is talking about. Affordability, not
by user_named 3y ago
The combination of high nominal prices and nornal-ish rates is what results in a high monthly outlay, that's what everyone is talking about. Affordability, not rates. At present prices, not 1990 prices.
- cmrdporcupine 3y agoPresent prices need to drop. A lot. If rates drop, prices will just continue to climb like crazy. You cannot fix affordability by just making loans more affordable. We need way higher supply, much better regulation, and normal (e.g. not insanely low like they were from 2008-2023) interest rates for this sickness to go away. If that means "destroying" the perceived wealth of homeowners like myself, so be it. Look at a graph of BoC rates for the last 40 years and then see what an anomaly the period after 2008 is. Nobody should be expecting/demanding a return to that.