“Housing prices have hit all-time highs and are rising in every corner of the country with no end in sight, making home ownership increasingly difficult for many Canadians. Three quarters (75%) of those who do not own a home want to own one but cannot afford it. Two-thirds (67%) are concerned about home prices in their community, suggesting they believe they may need to move to another community if they decide to buy a new home. Seven in 10 Canadians (71%) who do not own a home are concerned about saving up for one, including four in 10 (39%) who are very concerned about it. ”
And here’s another twist that, if it happened, would offend the injury on the out-of-reach front. Betterdwelling.com, citing Desjardins, suggests that mortgage rates could go up a little 40% by 2024. That would significantly increase the cost of borrowing and remove many potential buyers from the market.
The wrap on this post sums it up well …
“Since a number of factors go into a forecast, the longer the date, the greater the uncertainty. The economy would have to deteriorate and inflation would have to decrease for interest rates to decrease. For rates to rise, Canada would need to continue a strong recovery and / or experience higher inflation. Canada is so dependent on housing now that we probably have a lot of people cheering for a crash to keep prices down. “
COVID is a wild card for the big reopening of the economy
Much of the world has been in the grip of the virus for about 15 months. It determines the way we live. It determines the way we work.
There is great optimism today as we work our way to the “other side” of the first modern pandemic. This optimism is made possible by very successful vaccines that can only be described as miracles. We may take vaccines for granted now, but we should remember that vaccines typically take several years to develop; today’s life-saving vaccines were manufactured in months.
COVID cases, deaths and hospital stays are falling at rates that are more than encouraging. The vaccines are working.
Given this success, we have our cash and credit cards in hand to benefit from the grand reopening. And we want experiences buy more than things.