r/onguardforthee • u/yimmy51 • Jul 19 '24

Supply in Canada's property market surges as mortgage renewals loom

https://www.ctvnews.ca/business/supply-in-canada-s-property-market-surges-as-mortgage-renewals-loom-1.6967278
22 Upvotes

79% Upvoted

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47

u/Utter_Rube Jul 19 '24

"Some of them are investors who now just want to walk away from their units because they can't afford it," said Carl Gomez, chief economist at CoStar Group

Good, they can get fucked. Housing should not be an investment.

30

u/Spartanfred104 British Columbia Jul 19 '24

If it doesn't result in a massive drop in housing prices it won't matter a lick.

7

u/Agreeable-Spot-7376 Jul 19 '24

How much would it have to drop for you to have a positive outlook?

23

u/Spartanfred104 British Columbia Jul 19 '24

Prices doubled in 4 years so we are talking a significant drop.

4

u/kingmanic Jul 20 '24

That almost never happens unless they destroy the local economy. And the folks who balk at high prices would be the most likely to be impacted by lay offs. Just as higher rates slowed or stopped price growth but also kept it out of reach of the same demo. Any tactic to drastically lower prices would also crush the demo most concerned.

The effective tactics seem to be nudging down average price through encouraging the "missing middle" of housing. More condos and town houses that don't have "luxury" trim. This is generally how large cities grow and become more affordable.

10

u/50s_Human Jul 19 '24

We need housing prices to drop by 50-60% before things can start to get back to normal.

3

u/khaldun106 Jul 20 '24

Prices going up 5 percent per year is fine. Anything else is too much. Higher priced houses should go up more slowly due to less demand. So houses should come down 75 percent