Priced out: Will the Canadian housing market crash? Why home prices may stay hot

Historically low mortgage rates, a race for space and a rush to get into the market ahead of tougher borrowing rules have all fueled a surge in home prices across Canada during the pandemic, and it's not limited to major real estate hot spots. But when the borders reopen to immigration, housing experts say fresh demand may keep prices hot.

Prices are up about 30 percent across Canada, bringing bidding wars and buying frenzies to cottage country and smaller cities like Hamilton, Halifax and Moncton, all contributing to a growing affordability crisis.

Will the housing boom go bust? Global's Anne Gaviola explains.

Priced out is a three-part series looking at housing affordability challenges facing young people in Canada.

#GlobalNews

[theelites]

Who else is watching and reading comments at the same time 😊

[bdon]

Great job Global. Dedicating a full 2 minutes to the greatest threat to our country's future.

[quincy]

bruh, just heavily tax houses that aren't lived-in owned by people who don't use them

[ImI]

This is a huge problem. Homes are ment for living in. I'm young but I have saved. And yet I'm still being out bid by over a quarter million every time! They even want to sell the house I rent now. Basically putting me in a position where I would have to pay nearly 2k a month for a apartment. This is criminal! Why is noone talking about this! Somthing needs to be done!

[keyone]

Follow the Singapore model, tax high on the second investment property

[blockchainshark]

My wealthy friends in China bank all their money in Canada real estate.

Yet I'm not allowed to buy real estate when I lived in China because their govt protects their real estate from foreigners so locals are prioritized.

Our govt should protect us from wealthy investors also. The foreign tax is a joke to them

[Shinobubu]

The only solution seems to be is find another country to live in. No one wants to see their property drop in value and no one wants to pay higher.

[kevinembury]

"you will own nothing, and be happy!" some organization will own the property you live at.. but not you!

[midtown]

And of course, bringing in more than 1 million more people in the next five years
will certainly solve this, right?? Where do most settle? In the country's largest cities.

[marigold]

I’m so annoyed with this “low inventory” rhetoric from the real estate industry. What does it matter how much inventory when real estate investors can come in and buy up every available house and turn them into rental properties? My community has a new housing development being built and every house sold out within a week, some for over $1 million. I find it hard to believe there are that many people in the city looking to buy a new home. How many were purchased by overseas investors?

[pssongs]

This is 100% because of Government Policy. Canada's immigration policies has caused affordability to go through the roof for its own citizens. Canadians are being priced out due to foreign money pooring into the country which is sad for Canadians working hard to make a living!

[Po]

The most unaffordable place in terms of housing in the world is Hong Kong at #1, followed by Toronto at #2. Vancouver I believe is #6. All these 3 places also happen to be some of the most popular destinations for mainland CCP officials to park their cash. Coincidence?

[MarketManiaCA]

Canada is on track to build over 1.3m homes this year. This is clearly not a supply issue. Also immigrants earn average around $32k they are not coming in with bags of cash and buying homes. Foreign investors on the other hand which account for a small percentage of home sales in Canada are an issue. It's mainly however an issue with Canadian speculators and people buying homes to rent out and using them for a pension🇨🇦 easiest way to fix the whole issue is just to allocate 40% of all new housing stock to first time buyers. This would bring down housing prices into a downtrend for as many years as is needed. Despite what many think as this is now a national issue and sentiment is changing I think we will see real change in the coming few years.

[luketracey]

Vancouver, BC continued to rank as the most expensive city with one-bedroom rent staying stable at $2, 100.Minimum wage is $15.20 hr .
Monthly income 40hrs per wk.=$2432.00 per mth. If 30% of your Gross Pay is more than you're currently paying each month in rent, then you're at a safe level for housing. If 30% of your Gross Pay is less than your monthly rent, many "financial professionals would suggest that you find a more affordable home" or "INCREASE YOUR INCOME"(hint hint oink oink). Statistics Canada numbers show that the average Canadian household spends about $217 per person on food. $2432 monthly income - $2100 rent - $217 food. That leaves $115 to pay your phone and electrical. Lol. If your apartment or house is averagely consuming around 1000kWh, your electric bill will come around $167. .and you phone another $25 or so. Leaving you in the negative 😉. ..without anything left for yourselves working for absolutely nothing. NOTHING! How bout you pigs forget about the supposed value on your homes/properties and reevaluate the value of your citizens. Would you work for nothing ? 🐷😘🍁😈

[AmanSS]

Homes should not be this expensive, it’s getting harder the problem are the bidding wars and the greedy realtors that are having up the prices so they will get a better commission there should be a law against how much commission a realtors can make.

[sarahmaceachern]

Home prices are not "hot, " Global.

They've skyrocketed out of reach for most renting Canadians, and they are still climbing. Many of us are scared. Who are you writing this for? The investors or the public?

[mart]

"Environmentally friendly and affordable" is a code word for huge apartment buildings stacking desperate people on top of each other.

[verybigowl]

Getting permits to building anything takes years and is really expensive

[hotrodplumber]

The "housing shortage " is due to the government policies to prevent urban sprawl.

[bradgould]

not to mention...the artificial low interest rates...The Canadian government and the BOC are at the bottom of this