Quote:
Originally Posted by westopher
Housing prices are less relevant to the affordability crisis in canada than % of income spent by the average homeowner.
Housing prices can drop substantially due to the increase of mortgage payments necessary, and it does nothing to remedy our affordability crisis. It just changes who profits.
Supafamous is correct in a way, that nothing more than a massive supply influx can change that.
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The point of contention isn't if massive supply increase will changes prices, it's whether or not the demand here was fundamentally sound in the first place. Supafamous seems to think it's sound (i.e. won't decrease) but I don't.
We are still very early and we won't find out for another 2 to 3 years. If prices are still the same at that time with interest rates being more normal (not sub 3%), then he will be right. I have my doubts though.
As for sellers not wanting to sell for a loss and will just hang on to their properties, that's very true. Until they can no longer afford the payments of course.