How domestic investors are fuelling Canada’s hot housing market

Vancouver home sales are up nearly 12 per cent over last year and Toronto’s real estate market further intensified last month. Sales topped a November record and average selling prices reached a new all-time high in that market.

The average home price is up almost 22 per cent year over year to more than $1.1 million and cities across Canada are seeing similar tightening conditions.

As Anne Gaviola explains, domestic investors are a big factor in sky-high home prices.

#GlobalNews

[erinpanjer]

The pandemic has improved most household balance sheets? Not for those making $40, 000 a year and under, all of that was seen by the more wealthy. Everyone else took losses. Maybe the news could be more informative as to the classist nature of struggle in our society. 1/3 of Canadians rent, while there's a 25% increase of homeowners investing in another property during the pandemic alone, increasing their wealth with another home...possibly becoming landlords, while we see records in homelessness. "People become homeless by many different paths; however, the most common reasons are "inability to pay rent (63%)" (In Canada).

[tdwebste]

Property speculation is the problem.

Because in Canada property speculation is the only investment guarantee to increase year on year.

The solution:
New construction needs to be about 40% large coops units which are shared building ownership and individual unit ownership.

You buy a share of the building or building complex. When you sell, the money from the shared ownership goes to the coop community or is not sold because it was rented.

Coop government regulation needs to be improved so that building management companies are libel for the advice they provide.

[seamusmcfitz]

If you can't afford a house you don't deserve one. You aren't entitled to anything especially if you didn't work as hard as I did in university and in my job to get what I have. Tough. You failed at life.

[alijade]

I guess I gotta accept the fact that the only time I’ll ever own a house is when my parents pass away. :(

[claudebujold]

a perfect bubble...
a crash is coming near you!

[danielalonzo]

I am recalling Mohatma Ganhdi's quote " There is enough for everyone's need but not for everybody's greed"

[poochesworld]

My parents were only lower middle class people, but they managed to buy two houses in the city. Today there's no way younger people can afford to buy a house in the city if they are not at least in the higher middle class category. Houses in the countryside are much cheaper, so that's the option. The thing is, young people cannot really live there cuz there's not enough jobs and not many things happening.

[pritesh]

You just have to tax all those with multiple properties heavily if it is not their primary residence! They tried it back in the 70s. Once the market has cooled, lift the tax. lol 😆

[mjh]

The housing market policies are basically 'rent seeking' at this point, as in 'increasing wealth without creating wealth'. This is no way to run an economy.

The only way out of this, is to increase interest rates, and increase the housing stock. No pain, no gain.

[Adee_j___]

And the wealthy people buying more properties will become landlords next yr and the people who are on rent will be on rent because the needy will not be able to buy because of interests and everything... Govt should give relief to the ones who need it.. not to the ones who are already not needy..

[marthalawson]

This is making people homeless and the government needs to do something about it ..not everyone has the means to obtain a mortgage to buy or to rent at high rent rates ..

[YukiPyro]

Global is removing comments that call out Chinese and India investors that caused this mess in Canada.

[dougreed]

This isn't news lol
Several of my friends own 2 or more houses. Been going on for years.
People purchasing a second house shouldn't be able to access the low interest rates. It's not like the house wouldn't sell anyway. People who need a home should come before someone trying to make a side hustle.

[agoogleuseranonymous]

The Liberals keep saying tax the riches. So what are they waiting to tax homeowners(these with more than 1 property/mortgage). Capital gains from selling a a home should also be taxed...

[crlaw]

What a mistake of overbidding, just to get what you want.
When those interest rates go up, a lot of owners will be caught off guard.

[rps]

Also the hope that domestic investors that a foreign speculative investor will be interested in their property when they want to sell it in the future keeps those prices soaring.

[AmanSS]

i know some one that bought a house in 2019 in Brampton 905 area was $8883, 027, While a similar home in Toronto will cost $1, 174, 134 prices are ricing faster but peoples salaries are still the same.

[AmanSS]

A person can’t buy a house anymore because investors are buying them up. That is messed up. It’s one think to buy 1 house and put it on rent but don’t buy home up 4-5 homes and rent them out when other people are having a hard time getting there offer in.☹️

[lostmoose]

The ones who own property get richer by doing nothing.

[johncam]

People using HELOC to buy other properties needs to be stopped atleast for now, this is getting insane and putting everything in correction territory.