Expect Canada’s Economy to Get Worse Before Things Get Better
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- Опубликовано: 17 июн 2024
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The outlook for Canada’s economy and housing market is challenging, with more difficulties likely before any improvement.
The recent Bank of Canada rate cut has sparked optimism in the real estate industry, with many predicting a surge in demand and prices. However, I am skeptical. Current economic conditions don’t support a strong housing market rebound. Recent data shows that the number of households in Ontario severely delinquent on their mortgages has exceeded a billion dollars, doubling pre-pandemic levels.
Housing analyst Ben Rabidoux recently highlighted that mortgage delinquencies typically rise after the first rate cut, as it takes 18 to 24 months for the full impact of higher rates to be felt. Although the percentage of delinquent mortgages is still low, the increasing trend is worrying. Mortgages are often the last debt people default on, indicating significant economic stress when delinquencies rise.
The condo market is under particular pressure, with many investors listing their properties to reduce debt. While in most cases these properties are not underwater, the challenge lies in servicing the debt at high-interest rates. This has led to a record number of condo listings.
#torontohousing #torontorealestate #torontorealestatemarket
That’s why you should be investing in US stocks and not Canadian dirt 😅
That was the best thing I did about 8 years ago.
Yup made a killing in stocks and crypto over the last 8 years
@@Canadian_Eh_I yup. And Toronto condos are basically the same price over that time. So much for the “housing ladder”😂
There's no stock in Canada that goes up. Lolol
@@huskavarnabandyup, we sacrificed a tech-based innovation economy for a debt fuelled real estate one. Crazy
No buyers are rushing into buying overpriced homes, they aren't interested much in rate cuts. They want to see house prices themselves come down significantly. Why should the younger generation have to take on immense debt to be the boomer generations exit liquidity when they go to sell their homes to fund their retirement. They lived so nicely in their cheap homes, it's not the younger generations job to take on that burden. Honestly the boomer generation doesn't know how good they had/have things.
You want free lunches. It is not a girlfriend wish.
Don't worry. Canadians need homes to live and can't sleep on roads. When there is demand, prices will increase.
Lol I'll live in my car before i pay rental prices
sadly boomers are large voting block, and politicians will always buy their votes!
The reason for rate cuts is unemployment is finally increasing enough to cut. But cutting doesn't slow unemployment until 18-24 months later, just like rate increases didn't slow the economy until 2 years later.
Canada is lowering interest rates while America is not. For every 1% drop in Canadian rates, expect the Canadian dollar to drop by 10%, which will result in the cost of everything you need to live (all imports) rising by a similar 10%. People want rates to drop 2% to 3% but what they don't understand is that by doing so they will make the cost of living rise by 20% to 30%. I don't think many people can afford to pay 30% more for everything, they just don't have the income.
Then would you not get more rate cuts because CPI will start to drop like crazy and that in turn equal more cuts.
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According to Trudeau and Freeland, Canadian economy has been roaring for the last 8 years, beating the whole world.
We already made Canada the best country on earth in human history, and we will make it even better
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
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Thank you to all the investors for falling into the trap. The government will now take the condos back :) espicially since Canada bought 30 billion worth of Canadian mortgage bonds. And with the increase in liquidity from ofsi. I expect a lot of these mortgages to eventually go into default.
Can it get worse than 25% of Canadians living in poverty?
When JT gone , mostly will be better
won't change a thing...its greed and agents that caused this mess....
@@stephenfermoyle4578 Agreed. Even though Turdeau did less than nothing to fix the crisis, he's not the root cause of it.
Yup Pollievre will co-sign people’s mortgages I heard
@@stephenfermoyle4578no matter what Canada is fucked for the next 2-5 years. Lowering interest rates did nothing for this economy lmao. I suggest alot of people to get off their shit and go look for work. Why Indians are here to take all your jobs. They did the exact same shit to the chinese and Vietnamese back in the 1970s to 1990s
Our economy is beyond broken
Nope, the rate cuts are reflected in most mortgages almost instantly, has nothing to do with "working through the economy" The reason for the spike in delinquencies is that the Banks start cutting rates when they see the first signs, but they are too slow to do it. They should be cutting 1-2% right now, with inflation below 3%, a prime rate of 7% is waaaay too restrictive.
These are the conditions for a massive housing crash , homes won't stay 1m-1.5m yada yada yada , a correction is coming
So quick but your house now so when that crash comes you've deleted liquidity and profits. Greed greed greed
Nope. There is just too much underlying demand for housing for a crash, especially in the bigger cities. Prices have and will continue to soften over the next 2 years, but no crash.
Its the best time to buy, and sign a 1 year fix mortgage. Rates are coming down, and prices of house will skyrocket AGAIN.
I always became poorer under the liberals now I’m just trying to become a good liberal by living like a parasite off other taxpayers
Canada isnt even a serious country.