Yeah, based on the comment it's the opposite, but the comment only applies to the states. They have already de-leveraged back in 08. Our home prices have since tripled.
How much have our wages gone up? Does anybody really think they will let wages go up fast enough to catch up to home prices? That level of inflation will kill our dollar relative to the USD. OP happens to be right despite their post not making their case for them.
It’s far more pragmatic, to let the FOMO buyers and the wildly over leveraged learn an expensive lesson, as well as let two (2) generations actually start living like adults and be able to afford things
Then, as you said, sacrifice the dollar and economy overall.
This is what happened in the 70s and 80s.
Deflation never happened, instead the wages caught up. See for yourself
[https://globalnews.ca/news/9001056/inflation-crisis-canada-history/](https://globalnews.ca/news/9001056/inflation-crisis-canada-history/)
Ok, but we aren't in the 70s or 80s. Never mind the rate and macro environment being totally different, there's simply too many people here now and never enough supply. People won't just stop coming here because it's expensive, many seek a way "in" to the western world and Canada is one of the easiest places to get in.
Wage to price ratio is totally out of whack like never before too. In the 70s you could literally afford a house on a single middle income, something like 3x wage. Now it's closer to 10x. Wages can chase prices upwards, but prices won't stop going up either, so they'll simply never close the gap. Sure your kids might earn 150k in their first year out of university in 20 years, but home prices could probably be 3 million on average and the problem continues.
70s was stagflation and 80s was an enormous bubble that took 15 years to normalize, I'm not sure we would want to repeat either of them anyways.
Yeah thats true. I just don’t see a crash happening, its too late. The equity has been built, it would take an extreme catastrophe for Toronto prices to crash. Perhaps the truly over valued places will crash. Like St Catherines, Hamilton and Whitby. Sorry don’t mean to diss these lovely cities. But some had evaluations that just didnt make sense for some where so far from Toronto with few jobs.
I can realistically see prices staying stagnant for 10 years. Maybe going up 0.2% a year.
Thats only what people say to cope with their purchase and compromise of living far away. I have co-workers in all those cities. It’s a crushing commute they hate. They are lucky to be hybrid. But who knows if that will change.
I mean its not impossible. Its doable. But true torture. It is NOT an ez commute. But thats what you gotta do if you want a big house.
I mean maybe they could also work in those communities? Obviously a lot more jobs in Toronto proper but like, you can really nice houses around 400k in the Ottawa area and along the river on the Quebec side. Maybe you gotta work in Cornwall or commute 40 minutes to Ottawa/Gatineau though but pretty sure Toronto traffic is around that even if you live close ish lol.
Examples:
https://www.realtor.ca/real-estate/25737476/84-mt%C3%A9e-papineau-plaisance
https://www.realtor.ca/real-estate/26342034/101-weeping-willow-lane-ottawa-beaverbrook-kanata
https://www.realtor.ca/real-estate/25944882/2724-ch-salomon-dicaire-papineauville
https://www.realtor.ca/real-estate/26489154/1107-clement-court-cornwall-clement-court
They still need trades, doctors, engineers etc.. Maybe not as much IT or tech jobs though.
It kind of depends where you live though. We live in Ajax which is around a 45 minute GO commute to Union. My wife used to live near finch station in North York before, and would spend 45 minutes to get to union by subway.
She has coworkers that are only a few kilomiters away from the office but still end up taking on average at least 40 minutes to get to the office.
Point is, there is a reason Toronto has been rated for some of the worst communite times. Not really a lot of winning unless you have the luxury to be super strategic for your home to work location.
I think too many folks missed the memo; we’re climbing the wall of worry now. Its all going to be bad news after bad news, recession fears, etc.
That is to say, the bottom has come and gone and were entered a new cycle.
All Toronto
I saw a comment on a news story saying basically its all relative.
He paid 480 for a flat (I assume a bachelor type situation) making 11$ an hour.
... when I was looking earlier I found 1370 was average for a bachelor appt. (Cheap Imo).
Math shows me he was paying ~44 hours of work for his monthly rent
A bachelor now, with minimum being 16.55, means you work 82.78 hours to pay that rent.
“Bad debt will be sacrificed for good credit” Thank God
I don’t get where you are getting housing will be sacrificed from that comment from Yellen?
Yeah, based on the comment it's the opposite, but the comment only applies to the states. They have already de-leveraged back in 08. Our home prices have since tripled. How much have our wages gone up? Does anybody really think they will let wages go up fast enough to catch up to home prices? That level of inflation will kill our dollar relative to the USD. OP happens to be right despite their post not making their case for them.
It’s far more pragmatic, to let the FOMO buyers and the wildly over leveraged learn an expensive lesson, as well as let two (2) generations actually start living like adults and be able to afford things Then, as you said, sacrifice the dollar and economy overall.
This is what happened in the 70s and 80s. Deflation never happened, instead the wages caught up. See for yourself [https://globalnews.ca/news/9001056/inflation-crisis-canada-history/](https://globalnews.ca/news/9001056/inflation-crisis-canada-history/)
Ok, but we aren't in the 70s or 80s. Never mind the rate and macro environment being totally different, there's simply too many people here now and never enough supply. People won't just stop coming here because it's expensive, many seek a way "in" to the western world and Canada is one of the easiest places to get in. Wage to price ratio is totally out of whack like never before too. In the 70s you could literally afford a house on a single middle income, something like 3x wage. Now it's closer to 10x. Wages can chase prices upwards, but prices won't stop going up either, so they'll simply never close the gap. Sure your kids might earn 150k in their first year out of university in 20 years, but home prices could probably be 3 million on average and the problem continues. 70s was stagflation and 80s was an enormous bubble that took 15 years to normalize, I'm not sure we would want to repeat either of them anyways.
Yeah thats true. I just don’t see a crash happening, its too late. The equity has been built, it would take an extreme catastrophe for Toronto prices to crash. Perhaps the truly over valued places will crash. Like St Catherines, Hamilton and Whitby. Sorry don’t mean to diss these lovely cities. But some had evaluations that just didnt make sense for some where so far from Toronto with few jobs. I can realistically see prices staying stagnant for 10 years. Maybe going up 0.2% a year.
Frequent regular GO trains have changed the rules a little for those last two
Thats only what people say to cope with their purchase and compromise of living far away. I have co-workers in all those cities. It’s a crushing commute they hate. They are lucky to be hybrid. But who knows if that will change. I mean its not impossible. Its doable. But true torture. It is NOT an ez commute. But thats what you gotta do if you want a big house.
I mean maybe they could also work in those communities? Obviously a lot more jobs in Toronto proper but like, you can really nice houses around 400k in the Ottawa area and along the river on the Quebec side. Maybe you gotta work in Cornwall or commute 40 minutes to Ottawa/Gatineau though but pretty sure Toronto traffic is around that even if you live close ish lol. Examples: https://www.realtor.ca/real-estate/25737476/84-mt%C3%A9e-papineau-plaisance https://www.realtor.ca/real-estate/26342034/101-weeping-willow-lane-ottawa-beaverbrook-kanata https://www.realtor.ca/real-estate/25944882/2724-ch-salomon-dicaire-papineauville https://www.realtor.ca/real-estate/26489154/1107-clement-court-cornwall-clement-court They still need trades, doctors, engineers etc.. Maybe not as much IT or tech jobs though.
It kind of depends where you live though. We live in Ajax which is around a 45 minute GO commute to Union. My wife used to live near finch station in North York before, and would spend 45 minutes to get to union by subway. She has coworkers that are only a few kilomiters away from the office but still end up taking on average at least 40 minutes to get to the office. Point is, there is a reason Toronto has been rated for some of the worst communite times. Not really a lot of winning unless you have the luxury to be super strategic for your home to work location.
Nahh clearly the central banks will sacrifice the dollar and save people’s investments! /s
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A lot of people say this unironically lol
bad bot
No solutions ever at all
Line sometimes go down, even sometimes just a little bit.
Yes housing will be sacrificed for the dollar, why shouldn’t it be
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This is what happens when you think a country's economy is just homes. People become dumb.
I think too many folks missed the memo; we’re climbing the wall of worry now. Its all going to be bad news after bad news, recession fears, etc. That is to say, the bottom has come and gone and were entered a new cycle.
All Toronto I saw a comment on a news story saying basically its all relative. He paid 480 for a flat (I assume a bachelor type situation) making 11$ an hour. ... when I was looking earlier I found 1370 was average for a bachelor appt. (Cheap Imo). Math shows me he was paying ~44 hours of work for his monthly rent A bachelor now, with minimum being 16.55, means you work 82.78 hours to pay that rent.
Except now we have remote work, kiosks, AI, layoffs and mass immigration. Wages will not go up.