“Housing prices have hit an all-time high and are rising in all corners 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 can’t afford to. Two-thirds (67%) worry about housing prices in their local community, suggesting they believe they might have to move to another community if they decide they want to buy a new home. Seven out of 10 Canadians (71%) who do not own a home worry about saving up for one, including as many as four in 10 (39%) who worry a lot about this.”
And here’s another twist that, if it happens, would add insult to injury on the out-of-reach front. Betterdwelling.com, citing Desjardins, suggests mortgage rates could increase some 40% by 2024. That would significantly increase borrowing costs and would take many potential buyers out of the market.
The wrap on that post sums it up nicely…
“Since a number of factors go into a forecast, the longer the date, the more uncertainty it faces. Economic conditions would have to worsen and inflation drop for rates to fall. For rates to rise, Canada would have to continue a strong recovery, and/or see higher levels of inflation. Canada is so dependent on housing now, we likely have many people cheering on a crash to keep rates low.”
COVID is a wild card for the economy’s grand reopening
Much of the world has been in the grip of the virus for some 15 months. It dictates the way we live. It dictates the way we work.
There is great optimism today as we work our way to the “other side” of the first modern-day pandemic. That optimism is made possible by very successful vaccines that can only be described as miraculous. We might now take the vaccines for granted, but we should remember that vaccines usually take several years to develop; the life-saving vaccines of today were produced in several months.
COVID cases, deaths and hospitalizations are dropping at rates that are more than encouraging. The vaccines are working.
Given that success, we have our cash and credit cards in hand, ready to take advantage of the grand reopening. And we want to buy experiences more than things.