Mortgage rules hit Calgary housing market with ‘collateral damage’: CREA – May 16, 2018
According to an article written on the CBC which you can view by clicking the link below, the government is making some interesting decisions about the housing market.
As I’ve been saying for years now the housing marketing Canada can’t decline, it can’t become stagnant and the government is forever going to have to allow it to rise otherwise it won’t crash it will collapse. This is what people aren’t understanding. Government action caused this disaster, the reality of the matter is if you’re anti-free market the truth is the free market could have created a housing disaster like this, however it would have been unlikely to get this large, but that’s not what happened this housing bubble was caused by the Canadian government.
If this was a free market housing bubble, first off their wouldn’t have been any condos being built, I don’t know too many Canadians who want condos, most Canadians settle for condos, there are 2 demographics that like condos and those are the uber rich and the soon to be retired, sprinkled in there are the upper middle class. Any group outside this demographic usually doesn’t have any interest in a condo, because condos in reality or over priced rental units.
Now if this were a free market based economy would foreigners purchase condos? Ofcourse they would, but they’d need to have their projects approved on the municipal side of things so as condos were being built and business and other residence weren’t reaping any benefits from the condo, it’s unlikely that anymore would be built. However what’s being sold to Canadians is false concept of demand, Canadians need housing which is true, but if you look at the numbers what most Canadians want is lower priced rental units, which aren’t being built because there’s no incentive to build them.
So all of this stuff is coming to a head and like I said there’s no turning back at this point, the actual sad part of the Toronto situation is if those condo units were filled, Toronto would have a larger problem with flooding which could become the norm in downtown Toronto. In Alberta there exists different rules regarding rental controls, but the Alberta economy is going through a transition right now and well, without jobs their housing market will crash or will be unstable. Recently an article was written about Calgary’s condo problem apparently they’re building condos for future, well building now for future supply lowers prices now.
So the Canadian economy is looking more and more weird and because of all the regulations and entitlements the growing of the government, replacing manufacturing jobs with governmental service sector jobs, the collapse is getting closer and closer, however there’s no telling when it will hit.