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HOUSING PRICE INCREASE IN CANADA (HOW THE RATE INCREASE WILL AFFECT THE…
HOUSING PRICE INCREASE IN CANADA
HOW THE RATE INCREASE WILL AFFECT THE ECONOMY?
People will start defaulting on their debts.
Buying a house will not be an option.
Killing the economy for younger Canadians
Major cost of living
increase of credit and interest rates
people may lose their home and their credit..
the average salary does not increase as much as the housing price
WHO ARE THE AFFECTED PEOPLE
People buying a home.
People living local.
People buying Vocational houses are taking away the opportunity for a local family to purchase their home instead of having to rent.
Low income People.
The cost of life is High so the only option left is to get a mortage at high interest rates . for low income this is not an option since they can not pay those fees.
Millenials.
Median annual income is not proportional to the house rates the cost of living is higher
According to Reports any person wanting to buy a house needs to work full-time:
Evidentially there is a bubble on the housing market. Most people see buying a home as an investment. People who already own houses want to keep the prices increasing, since the rhetoric of "if you buy low and sell high you will get monetary benefits from it" hold true. Even the ones who do not want to see the market continuously rise still want to make a profit on their homes. A growing issue presently, unfortunately for most people buying a home is not an option. prices are continuously rising ultimately to a point where young people will no longer be able to afford any house. Thus finally the bubble will burst, leaving the economy much worse off.
SOLUTIONS
Lower the cost of living
More government support for lower income families
Promote building smaller homes
Easier loan accommodations
Raise the wages
Less privatized apartment complexes/or more regulations on apartment complexes
Less influence from CMHC
Forced retirement to put openings in the system
more competition in the market for owning homes
SOME OF THE ISSUES MOST PEOPLE IS FACING.
Houses are being valued higher than worth
CMHC has too many strict rules
Banks have outdated mortgage legislation
Government doesn't support the low-income families
The rising cost of living
Too many privatized apartment complexes which can charge anything they want within reason
The job market there is an oversaturation of qualified people because no one is retiring so no jobs for the students just coming out.
WHY THE PRICES ARE GOING UP?
People buy high because they get the money from Loans.
people get exhuberant loans in order to get what they need.
Banks are giving out more loans since they believe it is very profitable and makes the economy more fluent. However, people will not earn as much as the rising price of the houses. This leads to an unbalance within society.
More people moving into the country.
More Immigrants are coming to Canada so the house demand is always growing.
Prices follow the sales trend.
people willing to pay the top price will make the price go higher since real state agents see an opportunity to make extra cash and the market still moving.
According to the Canadian Real State Association the average price of a Canadian home in 2018 is $481,500 vs $210,000 in the 80s.
Low offer vs high demand.
there is more people than houses
