Canada's 'housing bubble' deemed close to bursting

[lio45]

That’s pretty decent, if you’re allowed to live there in a 24/7/365 parked van.

[thurmas]

Originally Posted by whatnext

At last! I've been able to find something price comparable in Vancouver to St. John's:

https://www.rew.ca/properties/3723362/p5...361&searchable_type=Geography&sort=price

How much is parking though ?

[swimmer_spe]

Originally Posted by whatnext

At last! I've been able to find something price comparable in Vancouver to St. John's:

https://www.rew.ca/properties/3723362/p5...361&searchable_type=Geography&sort=price

Tell me again why the big cities are so desirable.....

[Wigs]

Originally Posted by kwoldtimer

The average price of a detached home in Waterloo Region was up 1.1% in August, compared to July but, at $851,000, was down $335,000 from the peak in February.

That's quite the drop from the peak!

Do you think it's going to drop further or level off?

[swimmer_spe]

Using google to figure this out....

Median income in Canada is $55,700.
Mortgage affordability calculators say that a double income family with that income for each worker would mean they can only afford a $200,000 house.

That says that housing in Canada is unaffordable for most average people. What needs to be figured out is how to get the average house price down near what is affordable for the average 2 income household.

[MolsonExport]

In London, mean housing prices are down by about $180K from the February 2022 peak.

[Innsertnamehere]

Originally Posted by swimmer_spe

Using google to figure this out....

Median income in Canada is $55,700.
Mortgage affordability calculators say that a double income family with that income for each worker would mean they can only afford a $200,000 house.

That says that housing in Canada is unaffordable for most average people. What needs to be figured out is how to get the average house price down near what is affordable for the average 2 income household.

you have to use median household not median individual income, as you are comparing the affordability of a household.

Median Household income is $84k in 2020, 105k for those with two or more people living in the household (i.e. children, spouses). There aren't a lot of single people earning $55k buying detached homes.

[swimmer_spe]

Originally Posted by Innsertnamehere

you have to use median household not median individual income, as you are comparing the affordability of a household.

Median Household income is $84k in 2020, 105k for those with two or more people living in the household (i.e. children, spouses). There aren't a lot of single people earning $55k buying detached homes.

$105k is even lower than the individual doubled... Which means we need to see a average house price under $200k

[Innsertnamehere]

Originally Posted by swimmer_spe

$105k is even lower than the individual doubled... Which means we need to see a average house price under $200k

lol what? 105k is indeed lower as there are such thing as children and stay at home parents, etc. Of course 2+ person households will earn less than 1 person households.

"average affordability" should mean median household prices in the $400's, but even then that ignores realities like working vs. retired incomes (i.e. house prices don't matter if you are retired and own your home outright, but your lower retired income still gets counted towards average incomes), the fact that the lowest tiers of incomes will never be expected to own a home and still get counted towards average income, etc.

[Wigs]

These are the largest non-GTA housing markets in Ontario. It appears that most peaked in February with Ottawa and Niagara peaking in March.
This is the benchmark price for a 3 bed/2bath home aged 50-99 years, a typical family home.


https://creastats.crea.ca/en-CA

Ordered by largest decrease
K-W
peak: $958k, now ~$734k--decrease $223,400

Hamilton-Burlington
peak: $1.068M, now ~$862k--decrease $206,500

London/St. Thomas
peak: $779k, now ~$599.5k--decrease $179,400


Niagara Region
peak: $820k, now ~$687k--decrease $132,600

Ottawa
peak: $728k, now ~$650k--decrease $78,000

[swimmer_spe]

Originally Posted by Innsertnamehere

lol what? 105k is indeed lower as there are such thing as children and stay at home parents, etc. Of course 2+ person households will earn less than 1 person households.

"average affordability" should mean median household prices in the $400's, but even then that ignores realities like working vs. retired incomes (i.e. house prices don't matter if you are retired and own your home outright, but your lower retired income still gets counted towards average incomes), the fact that the lowest tiers of incomes will never be expected to own a home and still get counted towards average income, etc.

Doing the "how much mortgage can we afford" For 2 people earning the $55,700, or $111,400 total, I was getting just over $200k.So, if you are now basing it on a lower amount of $84k, that means it should be under $200k. So, how did you get the $400k?

[rousseau]

The century home divided into four apartments next door is getting painted. The new landlords, a consortium of two couples, actually pointed the brick on the entire house before moving ahead with this. My wife and I don't mind the colour, and we're happy that they went with painting the brick instead of covering it up with stucco or plaster, which seems to be all the rage these days.

There are four brick houses in our immediate vicinity that have been covered up in stucco. Blech!

[travis3000]

Barrie detached homes have dropped about 25% so far depending on area. Condos have dropped less (10%), as have townhomes (15%).

A house that was worth 1.2 million in February is down to 900K now. A 1 million dollar February sale is now down to 800K. A 720K townhouse is now down to 630K. Cheaper homes have taken less of a beating.

IMO the pain is not done. Another rate hike coming in October and possibly another one by December. Rates will climb another 3/4 to full point by the time the bleeding ends. House prices will likely drop another 10-12% on average before bottoming out sometime next year.

[MolsonExport]

Brick is way, way, way, way better than stucco. I loathe stucco.

[Wigs]

Originally Posted by MolsonExport

Brick is way, way, way, way better than stucco. I loathe stucco.

One of my former landlords covered up his building in stucco. It was an old Hotel gutted and converted to apartments, so at least everything was new and clean.

The best was a random passerby I heard below my window (2nd storey) saying to landlord: "Hey man, is this your building?"
Landlord replied: "yes"
Passerby: "It was beautiful brick. Then you covered it in that shit. You ruined it. You fucking ruined the beautiful brick building, buddy "

[Drybrain]

I suppose the owners may be covering the brick if its in poor shape and needs repointing, which can get very expensive when you need to do a whole house.

But christ, stucco over old brick, especially if there is decorative brickwork, is pretty nasty. Here in Nova Scotia the equivalent would be vinyl recladding of buildings that traditionally used cedar shingles. You basically transform a handsome historic building into a literal shack. It IS significantly cheaper than new shingles, and effectively weather-resistant, but it's also ugly as hell.

Painting brick isn't as bad, aesthetically. But if it hinders the breathability of the brick it can be a maintenance problem. If moisture gets under paint or a sealant and can't evaporate out, you get faster deterioration.

[someone123]

Originally Posted by Drybrain

But christ, stucco over old brick, especially if there is decorative brickwork, is pretty nasty. Here in Nova Scotia the equivalent would be vinyl recladding of buildings that traditionally used cedar shingles. You basically transform a handsome historic building into a literal shack. It IS significantly cheaper than new shingles, and effectively weather-resistant, but it's also ugly as hell.

Stucco over brick was popular in the 19th century in Halifax. Some brick buildings had wood siding over brick as well. How good it looks depends on how well it's done and what the building design is. Many of the old stucco-and-brick ones in Halifax have decorative stonework so they are not just plain boxes.

Likely example: https://www.google.com/maps/@44.6544642,...Bx3NdQBWhhqGTNOXiRvdA!2e0!7i16384!8i8192

Old photo (showing how much it has been stripped down, but the brick was always covered): https://archives.novascotia.ca/notman/archives/?ID=197

Another with storm porch: https://www.google.com/maps/@44.6388842,...0GYbXDvhIQNWp4igTUmhg!2e0!7i16384!8i8192

[thurmas]

Winnipeg house prices peaked in May at $450 k now down to $400 k.

[casper]

Muslim's believe it is wrong to charge or pay interest on loans.

As a side note, if you Christian, there are actually some sections of the bible that says the same thing. But as a society we don't pay attention to those sections.

In some countries you can basically get loans where they factor the financing into the upfront principle of the loan and then the loan is zero interest. So the government changed some of the tax rules to better reflect these types of loans exist.

https://www.theglobeandmail.com/business...ld-level-the-field-for-first-time-muslim

What is more interesting than the fact this change is happening is the reaction on social media. There is no shortage of right-wing people objecting to why should Canada change because of immigrants or why should one group get "special treatment". Basically a load of non-sense.

We will have to see where the new conservative leader comes in on this.

[yaletown_fella]

90% of the time, Victorian and prewar era brick looks better unpainted