{"id":35922,"date":"2018-07-12T07:08:58","date_gmt":"2018-07-12T12:08:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35922"},"modified":"2018-07-12T07:08:58","modified_gmt":"2018-07-12T12:08:58","slug":"canadas-housing-market-ready-to-implode","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35922","title":{"rendered":"Canada\u2019s Housing Market- Ready to implode!"},"content":{"rendered":"
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Canada\u2019s Housing Market- Ready to implode!<\/a><\/span><\/h3>\n<\/div>\n
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Despite what the mortgage companies and loan-sharks tell you: All\u2019s NOT hunky-dory with the Canadian real estate scene. Even the government, at all levels \u2013 Federal, Provincial, Municipal \u2013 are trying desperately to put on a brave face on the impending market correction. However, the numbers never lie.<\/p>\n

Here\u2019s why many analysts believe that Canada is heading for a housing bubble crash that could be much bigger than what our neighbours to the South experienced in 2008-09!<\/p>\n

Facts and figures<\/strong><\/p>\n

When Royal Bank of Canada (RBC) pushed out its Housing Affordability indicators for Q4-2017<\/a> a short while ago, it indicated that there was some improvement in the average Canadian\u2019s ability to afford a home. This was the first good news in over two years. RBC\u2019s Canada-wide affordability indicator stood at 48.3% in Q4 2017, compared to an average of 39.4% since 1985.<\/p>\n

So, what do these facts and figures mean? Well, in simple terms: Higher is bad. Lower is good!<\/p>\n

48.3% means that, for the average Canadian household, 48.3% of their household budget will be consumed on home ownership spending. That includes utilities, property taxes (not to mention HST\/GST<\/a> and other taxes) and yes \u2013 especially mortgages! Back in 1985, only 39.4% of a household\u2019s income went towards affording a home. To put things in perspective then, Canadian\u2019s spend 48.3 cents, on the average, out of every dollar they earn on housing affordability.<\/p>\n

Posing a rhetorical question: \u201cAre we at a turning point for affordability?\u201d, the RBC report offers us this gloomy outlook for Canada\u2019s real estate market:<\/p>\n

\u201cNo… Rising interest rates will put upward pressure on home ownership costs, and recent policy measures are more likely to reduce household and market risks than provide material affordability relief\u201d<\/i><\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Canada\u2019s Housing Market- Ready to implode! Despite what the mortgage companies and loan-sharks tell you: All\u2019s NOT hunky-dory with the Canadian real estate scene. Even the government, at all levels \u2013 Federal, Provincial, Municipal \u2013 are trying desperately to put on a brave face on the impending market correction. However, the numbers never lie. Here\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,1956,20604,2340,2449],"class_list":["post-35922","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-canadian-housing-market","tag-derailed-capitalism","tag-housing-market","tag-housing-market-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35922"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35922\/revisions"}],"predecessor-version":[{"id":35923,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35922\/revisions\/35923"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}