(Canada) Mortgage costs are less than rate of inflation for first time in 40 years

[u/tbonecoco]

https://financialpost.com/personal-finance/family-finance/mortgage-costs-are-less-than-rate-of-inflation-for-first-time-in-40-years

[u/sel_de_trahison]

There are quite a few financial blogs parroting pretty out of touch rhetoric on Canada housing. (Looking at you, financial times!)

Prices jumped where I live by 42% over the last year, with NO base effect. Most major cities in Ontario are now more expensive than New York city.

Let that sink in.

Whoever is telling you that these prices are sustainable, or that they are tied to any fundamental observation of value: They are absolutely not emphasizing enough that every first time buyer in this market going solo is completely priced out.

I've been saving for 12 years, currently earning 6 Canadian figures, with 150K down ready to go, and I saw what that buys start from a 2 story 4 bedroom detached with 2 car garage 9 months ago -- to now not even a bungalow 20 minutes away from the suburbs, with land along the highway that isn't even developed.

Prices have appreciated faster than prospecting first time buyers in my income range can even keep up. And the prices jumped up at once across the country. That is a MASSIVE red flag for a bubble.

This is becoming a major electoral issue, and it seems to be causing some of our political parties to gain/lose notable support from voters ranging from low to high skilled workers like myself. We're all completely disillusioned about the idea of working in this country in exchange for anything of value at all, when real inflation on the cost of living in Canada is completely off the rails.

[u/PaidByPutinBot123 → u/sel_de_trahison]

and this, for.the first time ever, makes me want to move to USA over Canada. At least I can afford to have a house there. That means a lot

[u/AutoModerator → u/[deleted]]

Rule VI:

All comments must enagage with economic content of the article and must not merely react to the headline. This post was removed automatically due to its length. If you belive that your post complies with Rule VI please send a message to mod mail.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/AutoModerator → u/[deleted]]

Rule VI:

This post was removed automatically due to its length. All comments must enagage with economic content of the article and must not merely react to the headline. If you belive that your post complies with Rule VI please send a message to mod mail.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/AutoModerator → u/[deleted]]

Rule VI:

All comments must enagage with economic content of the article and must not merely react to the headline. This post was removed automatically due to its length. If you belive that your post complies with Rule VI please send a message to mod mail.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.