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Strong evidence of problematic conditions persists in real estate market: CMHC

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Real Estate Professional | 26 Jan 2017, 01:32 PM Agree 0
Canada's federal housing agency says strong evidence of problematic conditions continues to exist in the national housing market
  • Masood Khan MVA, Broker, Re/Max Real Estate Centre | 26 Jan 2017, 01:47 PM Agree 0
    To be honest I do not agree with CMHC views, it is a simple formula of supply and demand moreover, this has been created by us, zero percent down, 40 years amortization, HST Rebate are some of the the reasons for the speculation.

    I have been around for over 35 years, a lot of people have quit their $ 50-60,000 jobs to come in Real Estate Sales and people earning smaller salaries are making big money in Real Estate speculation/investments.

    Tarion is not working for the benefit of the home buyers, they are known as an association for the benefit of the builders, most builders do not qualify buyers at the time of sales, they just want to sell to any one with 5% down ... the whole system needs a good review.
  • Mike Gustus | 26 Jan 2017, 02:07 PM Agree 0
    The Government is out of touch with the reality of the market climate in the prairies (Saskatchewan). Prices are not running away, they are in fact declining. What the changes in the insurance requirements is doing is bringing down the standard of living for young families. We have a shortage of jobs, and low unstable resources prices.
    I have been in the industry for 25 years and recognize when I see the market continuing to decline and slow down. I think the government studies are so far behind that they miss the mark most of the time.
  • djd | 26 Jan 2017, 02:22 PM Agree 0
    I have been around the industry for over 40 years. I've lived through a number of market corrections. The most notable was in 1990. Our midtown Toronto house (Yonge and Eglington) corrected by -30%.

    Up until that point, the real estate industry eloquently explained away the mere mention of a correction. They explained rapid price increases on the evolution of Toronto as a 'world class city'. Their position was that those who projected a correction 'just didn't get it'. Interestingly, anyone who could spell real estate was flipping house because it was considered a sure thing. At that time, foreign buyers represented about 30% of our neighborhood ownership. Sound familiar?

    Corrections are a normal part of real estate cycles. They reset price following a period driven largely by greed and excess enthusiasm. A correction is long overdo. Brace for impact.
  • realestateHants | 26 Jan 2017, 07:52 PM Agree 0
    The east coast real estate market is completely out of step with people's lives being disrupted by the inability to sell their houses. The inability of national lending policies to focus on Canada's unique regional differences leaves a lot to be desired and shines a spot light on CMHC's own inadequate understanding of these regional differences. Inadequate and irresponsible statements blanketing Canada's real estate market as a whole under estimate the impact on home owners and buyers and does not allow for those obvious regional differences.
  • BG | 27 Jan 2017, 01:16 AM Agree 0
    1. If "most people" "cannot afford" homes, why are they buying? Because they obviously can afford them. They obtain cash from overseas or from parents or the sale of their former home and suites provide additional income.
    2. Something many journalists and governments seem to overlook is the fact that in some communities average incomes are artificially depressed because foreign "students" and "homemakers" who buy multi-million dollar homes show very little or no income. This contributes to what is described as "poverty" income levels in some of our communities. It is interpreted as an "affordability crisis".
    3. Why are we allowing money launderers and foreigners to buy up our country, driving up prices making it unaffordable for Canadians?
  • andrew | 28 Jan 2017, 01:26 AM Agree 0
    this is the government's fault for not allowing more affordable housing, they are guilty of charging huge increases in levies/development charges, and not allowing enough development without huge costs for draft plan processes. And then allowing such low interest has all been in the interest for banks and the very top people of the world, and not thinking about the average person. The government needed to take away from capitalism to a certain degree and cap housing prices on new units thereby helping everyone succeed...... the costs and regulations were in the order of greed not in the order of natural long term reality . Bankrupting people is in nobodies best interests.
  • andrew | 28 Jan 2017, 01:27 AM Agree 0
    the government should have capped new home prices.
  • Peeved | 02 Feb 2017, 03:18 PM Agree 0
    Funny how the government restricts lending policies on housing - a basic need for everyone but doesn't do anything to restrict credit cards or vehicle loans..
    If the government is so concerned about our debt perhaps they should reel in Trudeau and the example he is setting. Individual debt is nothing compared to the billions of dollars he has wasted which has done nothing to help our country.
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