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Where are all the $100,000 after tax income earners that can afford these stupidly high home prices? Must be all the Trudeau billionaire immigrants from palestine and syria etc. Perhaps the ones on all the most wanted police lists all across the country for murder and violent crimes. Remember, a vote for Trudeau liberals and NDP will bring more of them into the country.
June 11, 2024 | Canadian Home Prices Moving Lower For Math Reasons
It is wildly unpopular to say this, but Canadian home prices need to move much lower. And yes, I, too, stand to lose net worth as they do.
Immigration is unlikely to prevent mean reversion here. Immigrants need places to live, to be sure, but historically, it took an average of 7 years before immigrants were able to buy a home in Canada. And that was when prices were more affordable than today.
At the moment, home affordability is at its worst since mortgage rates were north of 18% in 1981. The driver of unaffordability today is not interest rates (historically average); today, unaffordability is driven by prices being impossible multiples of household income (i.e., 5 to 12 times the average household income versus long-term norms of 2 to 4x).
Where I live, one hour north of Toronto, new listings are up about 66% since the end of February. Properties are sitting on the market, and would-be sellers are still asking prices paid when mortgage rates were under two percent compared to the 5% range today.
Recently, “reduced” and “new price” listings have been popping up. This lovely custom home on my walking circuit in a premium area across from the lake was built on spec during the pandemic. So far, as shown below, the price has been reduced by 22% to $1.69m from $2.195m two years ago.
A vacant lot around the corner has been marked down 58% to an ask of $495K from $1.195m three years ago (see listing history here). This lovely home in the same neighbourhood sold for $1.8m in February 2022 and is now listed 17% lower at $1.49m after months on the market (see price history here).
The trouble is that even at the $1.49m asking price, with a 20% (299k) downpayment, the mortgage payment would be $7,387 a month, $8,195 a month, including property taxes. That requires $98,340 a year in after-tax income to cover the mortgage and property taxes (as shown below), let alone all life’s other expenses. Less than 10% of Canadian households earn more than $100k a year before tax, never mind after (see Is a $100k salary enough for a comfortable life anymore?).
The reality is that most homeowners today would be hard-pressed to qualify for a conventional mortgage at current asking prices and interest rates to buy their current homes.
Yes, the Bank of Canada has started easing base rates in the banking system and is likely to respond to a weak economy and rising unemployment with more cuts in the months ahead. But that’s not all that’s needed here.
Canadian Political Free-for-All | Political Discussion ForumsShare
Amazing how it was warmer than present day, only a few thousands years ago, but our idiot politicians and newsmedia tell us we are going to burn up and wipe out now when it is cooler.
Hopefully Canadians, and the rest of the world, will kick these idiots out at the next election.
In a new study, scientists use the new “ostracod-clumped isotope thermometer” to reconstruct a much warmer Late Pleistocene/Early Holocene Mediterranean climate.
Today’s average summer and winter temperatures are 22°C (21.4°C) and 8°C, respectively, at Central Italy’s Lake Trasimeno.
Around 11,000-12,000 years ago, when CO2 hovered in the 220-230 ppm range, summer temperatures averaged 25°C, sometimes rising to 27°C. This is at least 3°C warmer than today.
As CO2 concentrations rose into the Early Holocene (9,000 to 10,000 years ago), the ostacod-clumped isotope thermometer indicates summer temperatures at this location dipped to 23°C (22.5 to 23.2°C).
During this same period winter temperatures averaged 12°C (11.8°C), which is “4°C warmer than today.”
Many citizens are no longer listening to the global warming bullshit from their politicians, newsmedia, corrupt scientists and other various conpeople.
The figures for the registration of new electric cars in Germany are looking increasingly awful. In May 2024, the Federal Motor Transport Authority (KBA) reported that it had registered only 29,708 vehicles with electric motors.
May e-car sales in Germany plummet more than 30% compared to a year earlier. AI image Chat GPT.
That is 30.6% down on the result for the same month last year.
CO2 emissions of new German cars also rose 3.3%…indicating the green transition has stalled and is reversing.
