The Bank of Canada is Going To Negative Interest Rates: Hot Manitoba housing market, while the Manitoba population growth slows down to only adding 1,466 people – March 20, 2021,
So a lot of signals are pointing to a negative interest rate economy for Canada, so between the 4th Quarter of 2020 and the first quarter of 2021, so far Manitoba has only added 1,466 people, yet for some strange reason, there’s a housing market boom happening in Manitoba.
Buy early maybe? Sure, no problem, but this causes a lot of the people who can’t buy early to have to pay more later, if the Bank of Canada continues to subsidize the Canadian housing market with these artificially low-interest rates.
The problem with these low-interest rates is that people are assuming that the Canadian dollar is going to become worthless in the future, which is great assumption. The problem with this subsidized housing market is that it’s a get-in early pyramid scheme, meaning those who wait have no market to save them because Canada’s central bank has made it clear, that they’re on board with whatever mandate the current government tables.
With Justin Trudeau, is not even tax and spend, it’s spend-and-spend, and if all else fails spend some more. Justin Trudeau has also been brutal on Canada’s regulatory environment, making once profitable private industries unprofitable, so if this continues, all signs point to a depreciated loonie in a deflationary economy.
So it’s understandable why Manitoba, which currently isn’t seeing a surge in population growth would be seeing a red hot housing market. Unfortunately, all signs point to negative interest rates coming to Canada, because as you can clearly see, the foundations and fundamentals of Canada’s current debt-fueled economy aren’t supported via tax-collection, it’s only supported with the belief that eventually, somewhere down the line Canada will get its act together.
In the meantime, the new normal is described in the special interest fueled housing sector, which expects that people who aren’t experiencing much wage growth to expect to pay more for less, whether or not the demand is fueled purely by speculators who benefit from Canada’s central bank policies.
Potential homebuyers ‘have to adjust expectations’ in hot Manitoba housing market | cbc.ca
Interesting times ahead!