We live in rural Ontario, 2 hours north of Toronto, and we were thinking of purchasing a larger home near our small town. However, prices here have been exploding lately! It really does defy logic! Incomes are the same as they were last year, yet housing prices are up over 10% !
I work in new construction as a Carpenter and also builder for 35 years, the market makes no sense to me ..my brother and i were talking the other day.. A basement entry houses are selling for $1,800,000 ...Maple Ridge suburb of Vancouver. This Makes No Sense, same houses 8 years ago.. $700,00 *average incomes have not risen at all since then * food and household expenses have gone through the roof *people buy loaded vehicles for $60,000..but the husband and wife only make $120,000 combined yearly * The interest rates will go up..its a matter of time and mortage renewals will be a mess...(forclosures.) * This will creap in silently and before people know it they will be in a bad state of affairs...then they will blame the government or look for handouts * housing is going up also because the dollar has lost value (velocity) Work of advise...buy what you can afford and read about how the market runs in cycles.. good, bad, and ugly. If you cant buy ..then save ,save and wait for the right time.. Be a wolf...not a sheep
JJ There are references in real estate stats , also demographics...huge one Baby boomers retirement,(aging population) pension funds going broke, stress on medical systems, i think there will be a lot of leveraged people selling with to large of mortgages coming up. There are a lot of older people who have houses that will need to sell .. maybe there will be an over supply with them downsizing... However i have noticed they are holding on to them longer and keep working. I am a positve person but there is something not right about the current climate., especially the value of money. I am not an expert at all, but just read a lot and make sensible decisions. Some i did not do younger..lol Ps Jackie has a good pulse on things as well, smart guy.
Well 12 years ago if you have 10K invested in AMZN right now is 10mill. I have seen evough people to make 500K-1M in this year on stock markets. EV play on Tesla and Nio, made a lot young people rich this year. Canada is only 1.5% of global GDP and GVR is a desireable place in the world, supply can not meet demand.
@@robertdmci I see the demand everyday, but its a lot of local people buying as well.. In general people have way too much debt, but i agree about desirability aspect...great place to live. I see the gvrd becoming only for the haves...and the have nots moving away. Just economics
@@simoneales2568 Yes I totally agree with your on this! Raising price in global housing market not only Canada, South Korea price doubled this year and you can not find any decent house in Santa Monica for less than 2 mill. All fiat currencies are going to zero in the long run.
Shout out from Peterborough Ontario. Love watching your videos super informative. Yeah our housing market is absolutely nuts. I just bought this year a single family home in Peterborough got super lucky to be able to put an offer in before other viewings so didnt have a bidding war on my home home thank godness unlike the other three we lost due to bidding war. House prices are shooting up. Already could say since moving in July our house price has already gone up around 50 to 60 thousand dollars. But alot of people are relising that they can get a better bang for their buck just outside of Toronto have quieter living and more home and yard for way less.
@@Lj22 our house is in the sought after south end. We paid asking at $359900 it was an estate since their dad passed in december they renovated and put it up we jumped right on and they were motivated to get rid of it. At this point 6 months after there are alot less houses under 400 there are a few but ypu would want to stay away from the downtown area cause there are scketchy parts. We are at 1250 sqft not including the basement that is full but partially finished 1.5 storey. 3 bedroom 3 bathrooms. Comparables in our area now are well over 400
Thanks good info. You really need to get into the Halifax market too. It is off the charts and would like to see how it compares to the rest of Canada.
I live in the Montreal suburbs. I bought my condo in 2017, and as you said, as an investment because I wanted a house but couldn't afford it at the time. I sold my condo in July this year for 30% more of what I bought in 2017. I was ready to buy a house even though I would pay a premium. I played myself though, because I can't find a family house with garage. Not that I don't want to pay the price, I just can't. I make offers at asking prices and get overbid by probably 25-30k everytime, on 400k houses. It's nuts. I'm getting frustrated
I feel your frustration. Just went through the same issues here in Peterborough Ontario. We were first time home buyers with a budget of $375000 was our approval. We were renting a house from my parentd which they sold to the city. We had till the end of the year to find a place. We knew we didnt want to rent again and find a place to call home. Except for one issue the market is hot the home inventory is low and with our approval it was extra hard to find a place within budget that was in an area we wanted. We put offers in on three houses got out bid everyone over asking since we were only go to asking price when offering. Finally got some good luck and a house that was in our prime area came up for under budget. We went through and loved it through an offer in as soon as our realitor got home and got the paperwork filled out. We went in at asking first offer didnt want to play games show we are interested. They were holding offers for 24 hours. We negotiated that if we had a strong offer if they would get back to us that night. They agreed we through in a strong asking offer and withing an hour and a half we were home owners. Things always happen for a reason. We love our home got super lucky since we were first viewing first offer.
Real example: My friend bought detached in Brampton for 650k in 2018. He lost his job in covid. His monthly mortgage payment with taxes, utility was 3300$. His wife kept her job hey net pay monthly was 3600. He got 1400$ rent from basement with CERB and EI they were alright. He put his house on market a month ago and got 830k for it. He then bought a 3 bedroom 1 year old freehold townhouse in ajax for 620k. His monthly payment is now 2100$. He is back employed now.
Very logical consolidation of information... I'm Able to understand and follow charts and market references and a good starting point to do my own personal research. Although I've sold my townhome in Brampton and purchased in Simcoe region, I still troll for real estate investment opportunities and all your information has allowed me to stay current ... New subscriber. Thanks.
I can rent a house in Waterloo for $1,400 per month, or buy a similar house down the street for only $5,200 per month in mortgage payments. Why rent when you can buy, right?
I’m researching British Columbia’s small town home prices (population under 5000) and I’ve seen homes at the 350,000 to 500,000 CDN. Make your own conclusion as conclusions are perceptible.
@@larryc1964 I agree. I like the 10-15 rule. Meaning the median income of the taxed population in an area over those years. So if median is 30,000/yr then a plot of land, designated by said area, would cost 300,000+- dollars (land) not an apartment. Those should be around 100,000+- in the most populated cities and down around $25,000 in cities under 5000+- population.
@@vicariouswitness don't forget that in those small towns jobs are mostly nonexistent and the nearest cities where you could be employed would be hours away
My landlord claimed renovations and raised our rent by $150 per month back in April. As for condos, they have been raising there maintenance fee and basically forcing people to look for alternative properties. I also noticed even though there a very little listings, when you drive around the city there is still a lot of properties up for sale.
I would have to say real estate is more of a place to “park” your money relatively safely, as it really appreciates at factors that are rather slow. Stocks allow compound power to really be considered investing. The factors in corporations are faster to adopt and change with market changes. But this being said... real estate in the right markets (renters) are good as investment.
Thank you for the great video! You mentioned that Ottawa market will remain strong until something drastic happens, as a public servant I think that drastic change may come at the next federal election if we end up with a new government. During the last recession thousands of government jobs were cut under the Harper government, with how federal government jobs have been steadily increasing over the years, I think we could expect some cuts in the next few years or decreased hiring which may have impacts on the housing market
I live in the GTA and and was planning to purchase a house since the start of 2020. I decided today that the risk to reward of investing in an overvalued asset like Canadian real estate is not worth it, especially with the instability of the economic climate and future tax implications for home owners. The upside for the market is also very small in relation to other assets that you could be investing in. All of my capital which was going into a house will be in better bets, namely cryptocurrency, precious metals, mining stocks, and specific commodities. I will sleep better not having a large portion of my wealth in an asset that is so heavily manipulated by reckless government policy.
@@jordanlavalley Rent? Did you mean rent or buy? Not sure what rent had to do with my comment. But I am at my same residence since 2012 and did not have my rent raised for the first 5 years, so renting is good right now.
@@jooky87 Vaughan Ontario . I surrendered its gonna be a gong show and they doing this on purpose . They will go negative rates if they must. I'm thinking all these dirty politicians must have hoards of homes and want it to explode. Join the train or miss it completely.
Hi Jacky, new subscriber without a Facebook here. Wondering if you can share insight on Quebec City. The area is very attractive to us, but would love to know how you see their real estate market heading.
Over bid a property over 150K back in 2017 when I can still get 1 million dollars mortgage. I wont sell my lot for under 2 mill now. Fiat currency is going to ZERO, I have few thousand years of history to back me up, and Canada only less than 150 yrs old.
You should really take quantitative easing into consideration. Real estate remains one of the top ROI despite rent drops and price rising due to the plummet in bond yields and insane P/E in stocks. Couple that with rock bottom mortgage rates and you can get 9+% ROI even with neg cashflows, and not even valuing in land appreciation. Of course the irrationality of investors jumping in now comes from the expectation that rent would increase before interest rates rise, which may not happen and would ultimately put them in a illiquid position.
Condo building or any home building is usually cheaper quality as market heats up. Developers want to get the next project as soon as possible and will cut corners to move on to the next “high-fast profit” site. Not all developers but the risk of a bad one increases as the market attracts them as the good developers are simply too busy to handle the huge demand in the said market. So Vancouver and Toronto has a large number of buildings that will need lots of maintenance for its entire life span.
@@vicariouswitness i guess they give it away in a way by setting high maintenance fees per sqft. They know its going to cost alot to maintain bc of the cheap stuff they put in.
Bank of Canada is complicit in the housing problem....many millenials are buying homes now but homes are incredibly expensive. High maintenance fees, high prices for detached townhomes and condos to the point that you may not even be able to sell it for more $100K profit. For example, if you buy a home for $990,000 how much will you sell it for given this pandemic economy? Its a big set up to fail. Why take up such debt if the bank still owns your home?🤷🏿 Rent Rent!!
Canadians love houses. They generally shy away from other investments because they are convinced that real estate will always go up. If things go south in real estate, this entire nation will collapse.
We live in rural Ontario, 2 hours north of Toronto, and we were thinking of purchasing a larger home near our small town. However, prices here have been exploding lately! It really does defy logic! Incomes are the same as they were last year, yet housing prices are up over 10% !
I work in new construction as a Carpenter and also builder for 35 years,
the market makes no sense to me ..my brother and i were talking the other day..
A basement entry houses are selling for $1,800,000 ...Maple Ridge suburb of
Vancouver.
This Makes No Sense, same houses 8 years ago.. $700,00
*average incomes have not risen at all since then
* food and household expenses have gone through the roof
*people buy loaded vehicles for $60,000..but the husband and wife only
make $120,000 combined yearly
* The interest rates will go up..its a matter of time and mortage renewals
will be a mess...(forclosures.)
* This will creap in silently and before people know it they will be
in a bad state of affairs...then they will blame the government or look for
handouts
* housing is going up also because the dollar has lost value (velocity)
Work of advise...buy what you can afford and read about how the market
runs in cycles.. good, bad, and ugly.
If you cant buy ..then save ,save and wait for the right time..
Be a wolf...not a sheep
Where can I read about market cycles ? Any recommendations!
JJ
There are references in real estate stats , also demographics...huge one
Baby boomers retirement,(aging population) pension funds going broke,
stress on medical systems, i think there will be a lot of leveraged people
selling with to large of mortgages coming up.
There are a lot of older people who have houses that will need to sell ..
maybe there will be an over supply with them downsizing...
However i have noticed they are holding on to them longer and
keep working.
I am a positve person but there is something not right about
the current climate., especially the value of money.
I am not an expert at all, but just read a lot and make sensible decisions.
Some i did not do younger..lol
Ps Jackie has a good pulse on things as well, smart guy.
Well 12 years ago if you have 10K invested in AMZN right now is 10mill. I have seen evough people to make 500K-1M in this year on stock markets. EV play on Tesla and Nio, made a lot young people rich this year. Canada is only 1.5% of global GDP and GVR is a desireable place in the world, supply can not meet demand.
@@robertdmci
I see the demand everyday, but its a lot of local people buying as well..
In general people have way too much debt, but i agree about desirability
aspect...great place to live.
I see the gvrd becoming only for the haves...and the have nots moving away.
Just economics
@@simoneales2568 Yes I totally agree with your on this! Raising price in global housing market not only Canada, South Korea price doubled this year and you can not find any decent house in Santa Monica for less than 2 mill. All fiat currencies are going to zero in the long run.
Subscribed! This is the most detailed and put together RUclips video on Real Estate that I have watched (well listened to) in a loooong time.
Another great video. Good analysis. And most importantly, none of the "OMG ITS GONNA CRASH" click bait title.
Shout out from Peterborough Ontario. Love watching your videos super informative. Yeah our housing market is absolutely nuts. I just bought this year a single family home in Peterborough got super lucky to be able to put an offer in before other viewings so didnt have a bidding war on my home home thank godness unlike the other three we lost due to bidding war. House prices are shooting up. Already could say since moving in July our house price has already gone up around 50 to 60 thousand dollars. But alot of people are relising that they can get a better bang for their buck just outside of Toronto have quieter living and more home and yard for way less.
How big the house you bought and how much ? Just trying to see how Peterborough market is ! I live in Brampton was thinking to move towards east
@@Lj22 our house is in the sought after south end. We paid asking at $359900 it was an estate since their dad passed in december they renovated and put it up we jumped right on and they were motivated to get rid of it. At this point 6 months after there are alot less houses under 400 there are a few but ypu would want to stay away from the downtown area cause there are scketchy parts. We are at 1250 sqft not including the basement that is full but partially finished 1.5 storey. 3 bedroom 3 bathrooms. Comparables in our area now are well over 400
thanks for touching on Edmonton markets. Continually looking for data on Edmonton and appreciate the work you do. :)
Thanks good info. You really need to get into the Halifax market too. It is off the charts and would like to see how it compares to the rest of Canada.
I live in the Montreal suburbs. I bought my condo in 2017, and as you said, as an investment because I wanted a house but couldn't afford it at the time. I sold my condo in July this year for 30% more of what I bought in 2017. I was ready to buy a house even though I would pay a premium. I played myself though, because I can't find a family house with garage. Not that I don't want to pay the price, I just can't. I make offers at asking prices and get overbid by probably 25-30k everytime, on 400k houses. It's nuts. I'm getting frustrated
I feel your frustration. Just went through the same issues here in Peterborough Ontario. We were first time home buyers with a budget of $375000 was our approval. We were renting a house from my parentd which they sold to the city. We had till the end of the year to find a place. We knew we didnt want to rent again and find a place to call home. Except for one issue the market is hot the home inventory is low and with our approval it was extra hard to find a place within budget that was in an area we wanted. We put offers in on three houses got out bid everyone over asking since we were only go to asking price when offering. Finally got some good luck and a house that was in our prime area came up for under budget. We went through and loved it through an offer in as soon as our realitor got home and got the paperwork filled out. We went in at asking first offer didnt want to play games show we are interested. They were holding offers for 24 hours. We negotiated that if we had a strong offer if they would get back to us that night. They agreed we through in a strong asking offer and withing an hour and a half we were home owners. Things always happen for a reason. We love our home got super lucky since we were first viewing first offer.
You can’t even buy a house in the lower mainland (greater vancouver) for less than $800k
Real example: My friend bought detached in Brampton for 650k in 2018. He lost his job in covid. His monthly mortgage payment with taxes, utility was 3300$. His wife kept her job hey net pay monthly was 3600. He got 1400$ rent from basement with CERB and EI they were alright. He put his house on market a month ago and got 830k for it. He then bought a 3 bedroom 1 year old freehold townhouse in ajax for 620k. His monthly payment is now 2100$. He is back employed now.
Very logical consolidation of information... I'm Able to understand and follow charts and market references and a good starting point to do my own personal research. Although I've sold my townhome in Brampton and purchased in Simcoe region, I still troll for real estate investment opportunities and all your information has allowed me to stay current ... New subscriber. Thanks.
You're the man Jacky! Always coming thru with great content and easily digestible.
Thank you for covering Montreal🙏
yes! its good to finally see some montreal stats
I can rent a house in Waterloo for $1,400 per month, or buy a similar house down the street for only $5,200 per month in mortgage payments. Why rent when you can buy, right?
Absolutely enjoying all vids and the broad scope of coverage. Well done and Plse dont’t stop:)
Do you think it’s good to buy a house now or later?
I have the same question
If its self use n u can afford then now is good, check out my PSA for buyer video
@@JackyKuk ok
I live between Kingston and Ottawa. 2 & 3 bedroom detached houses are selling 20-30% over asking price.
Thanks for this thorough video. What is the website at 6:09?
I’d say real estate costs in Canada in general defies logic!
Same in New Zealand.
I’m researching British Columbia’s small town home prices (population under 5000) and I’ve seen homes at the 350,000 to 500,000 CDN. Make your own conclusion as conclusions are perceptible.
@@vicariouswitness that’s very unreasonable. Can’t imagine having a $400,000 debt over my head
@@larryc1964 I agree. I like the 10-15 rule. Meaning the median income of the taxed population in an area over those years. So if median is 30,000/yr then a plot of land, designated by said area, would cost 300,000+- dollars (land) not an apartment. Those should be around 100,000+- in the most populated cities and down around $25,000 in cities under 5000+- population.
@@vicariouswitness don't forget that in those small towns jobs are mostly nonexistent and the nearest cities where you could be employed would be hours away
My landlord claimed renovations and raised our rent by $150 per month back in April. As for condos, they have been raising there maintenance fee and basically forcing people to look for alternative properties. I also noticed even though there a very little listings, when you drive around the city there is still a lot of properties up for sale.
Thank you for explaining to a newbie what to think about in investing!
I would have to say real estate is more of a place to “park” your money relatively safely, as it really appreciates at factors that are rather slow. Stocks allow compound power to really be considered investing. The factors in corporations are faster to adopt and change with market changes. But this being said... real estate in the right markets (renters) are good as investment.
I just can’t wrap my head around seeing my credit report showing I owe 1.2 Million just on my house! Totally Luney Tune.
Thank you for the great video! You mentioned that Ottawa market will remain strong until something drastic happens, as a public servant I think that drastic change may come at the next federal election if we end up with a new government. During the last recession thousands of government jobs were cut under the Harper government, with how federal government jobs have been steadily increasing over the years, I think we could expect some cuts in the next few years or decreased hiring which may have impacts on the housing market
I live in the GTA and and was planning to purchase a house since the start of 2020. I decided today that the risk to reward of investing in an overvalued asset like Canadian real estate is not worth it, especially with the instability of the economic climate and future tax implications for home owners. The upside for the market is also very small in relation to other assets that you could be investing in. All of my capital which was going into a house will be in better bets, namely cryptocurrency, precious metals, mining stocks, and specific commodities. I will sleep better not having a large portion of my wealth in an asset that is so heavily manipulated by reckless government policy.
@@jordanlavalley Rent? Did you mean rent or buy? Not sure what rent had to do with my comment. But I am at my same residence since 2012 and did not have my rent raised for the first 5 years, so renting is good right now.
@Tu H I wouldn't be so sure anymore with Trudeau endorsing the radical "Great Reset" which essentially advocates for the end of property rights
In Greater Toronto area, all pre construction homes are selling immediately no inventory left
And resale home are selling within a week 100k over asking
Anything interesting happening in Maritimes?
Nice video, I like your colorful graphs and tables.
I'm renting out a Condo in Toronto which I moved into today, the rent for the unit was $2300 a month last year, this year it's $1800.
Great insightful video! Thanks Jacky!
I bought a detached house. I couldn't wait any longer . This whole thing is ridiculous
What city and what made you make the leap? Feeling the same issues
@@jooky87 Vaughan Ontario . I surrendered its gonna be a gong show and they doing this on purpose . They will go negative rates if they must. I'm thinking all these dirty politicians must have hoards of homes and want it to explode. Join the train or miss it completely.
Why Vaughan and not Brampton? I heard houses in Brampton are cheaper too !
@@Lj22 that area is the next Detroit no way ! Its zombie land.
@@torontomunda how the prices in Vaughan ? What did you buy ?
Always enjoy your videos. Keep them coming.
Hi Jacky, new subscriber without a Facebook here. Wondering if you can share insight on Quebec City. The area is very attractive to us, but would love to know how you see their real estate market heading.
If you don't mind me asking, what is your CPM for your channel? $10?
$35
@@JackyKuk Wow good for you I didn't realize it would be that high. You deserve it
Showing Euro for Canada Housing Market update - awesome
Can you talk about Nanaimo? I think it presents interesting opportunities considering its proximity to van and vic.
Haha yes, too bad Nanaimo is a dump.
@@stevenvanderheide6472 Not that long ago Vancouver had a bad reputation. Squamish was a "dump". I form my own opinions and think Nanaimo is great.
Can you review oil capital city, Fort McMurray?
Disaster
Very enlightening.
Excellent Jacky, thank you.
Love these videos Jacky
Over bid a property over 150K back in 2017 when I can still get 1 million dollars mortgage. I wont sell my lot for under 2 mill now. Fiat currency is going to ZERO, I have few thousand years of history to back me up, and Canada only less than 150 yrs old.
You should really take quantitative easing into consideration. Real estate remains one of the top ROI despite rent drops and price rising due to the plummet in bond yields and insane P/E in stocks. Couple that with rock bottom mortgage rates and you can get 9+% ROI even with neg cashflows, and not even valuing in land appreciation.
Of course the irrationality of investors jumping in now comes from the expectation that rent would increase before interest rates rise, which may not happen and would ultimately put them in a illiquid position.
thanks for the info!
Yet, every time you go and try to rent something, it's higher than last year, and considerable so.
I found it a little funny that this video showed Euro notes when talking about Canadian real estate.
free stock footage, cant find canadian dollars
Great video! Could you please share your facebook group link? I'm looking for information about Waterloo region market.
I have often wondered if condo construction was over-building even pre-pandemic
Condo building or any home building is usually cheaper quality as market heats up. Developers want to get the next project as soon as possible and will cut corners to move on to the next “high-fast profit” site. Not all developers but the risk of a bad one increases as the market attracts them as the good developers are simply too busy to handle the huge demand in the said market. So Vancouver and Toronto has a large number of buildings that will need lots of maintenance for its entire life span.
@@vicariouswitness i guess they give it away in a way by setting high maintenance fees per sqft. They know its going to cost alot to maintain bc of the cheap stuff they put in.
@@dilpreets7 it’s deplorable....
Suuuuper good video. You should have more views and subs. Liked. Commented. Subscribed. Shared.
Banks and gov don't let prices fall....they have invested in real estates....honestly, I gave up....
Seriously bank of Canada is complicit in creating this problem of unaffordable housing
Bank of Canada is complicit in the housing problem....many millenials are buying homes now but homes are incredibly expensive. High maintenance fees, high prices for detached townhomes and condos to the point that you may not even be able to sell it for more $100K profit. For example, if you buy a home for $990,000 how much will you sell it for given this pandemic economy? Its a big set up to fail. Why take up such debt if the bank still owns your home?🤷🏿 Rent Rent!!
I have been telling everyone to buy properties at the beginning of this pandemic.
Its a seller's market now....shit is so high
200k ? only like 500k people make that on all the work force.
If it doesn’t make sense it won’t make money.
Canadians love houses. They generally shy away from other investments because they are convinced that real estate will always go up. If things go south in real estate, this entire nation will collapse.
I think work from home is here to stay after the pandemic, at least partially.