Up, up, up: Canada house prices poised to surge again despite central bank warning

Canadian housing prices are set to surge again in the coming months as investors and first-time buyers scramble to buy before interest rates go up, ignoring a warning from the Bank of Canada that there is a high risk of a sudden price drop.

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happyludicolo
happyludicolo
57 · 2 days ago · Reddit

Sigh. I’ve just given up at this point. I’ll rent. And anything I save goes into etfs. There’s literally nothing more I can do at this point.

So much for the Canadian dream

hippofant
hippofant
25 · 2 days ago · Reddit

The economy is going to be so fubared when interest rates are raised again. I sincerely hope people aren't locking themselves into variable-rate mortgages they won't be able to pay off...

Difficult-Buffalo-54
Difficult-Buffalo-54
25 · 2 days ago · Reddit

The money printer has been on maximum speed since the start of the pandemic. Interested rates are as low as they can be, with the highest rate of inflation in 20 years. Of course house prices will go up!

PullTilItHurts
PullTilItHurts
19 · 2 days ago · Reddit

Ratings agencies are taking notice. Fitch has pegged Toronto's housing market at 32% overvalued and Vancouver's at 23%. Moody's Analytics also has Vancouver 23% overvalued, Toronto 40% and Hamilton, Ontario, 73%.

The average price of a home in Toronto, Canada's biggest city, hit C$1.2 million ($947,493) in October, up 19.3% from the previous year, and detached homes now average C$1.5 million.

Canadian Prime Minister Justin Trudeau has pledged to act on the runaway market, but critics note prices have climbed 77% nationwide since he took office in 2015.

Toronto mortgage broker Ron Butler says he is getting busier by the hour with clients desperate to get into the market.

"We see it, literally, hourly here ... people who have simply given up and say: 'The prices are going to go up forever, I have to buy now,'" he said.

Butler said he is working with one longtime Toronto renter who has been waiting years for prices to fall so he could get into the market. Now he is buying an hour's drive west in Hamilton because he is worried he will never own a home otherwise.

Gunslinger7752
Gunslinger7752
9 · 2 days ago · Reddit

“an hour West in Hamilton” Hamilton may be an hour West on the GPS but good luck doing it in under 2 hours on a regular commute home. We have some friends who bought in Hamilton to “save money” and now the only way to do it is to take the 407 both ways (yet another collosal government f up) which costs them about $2000 a month in tolls!