It started off slow now it's speeding up and prices are set to drop along with sales. Wait until the interest rate adjustment hits...
>Toronto's suddenly dipping housing market appears poised to decline at a higher rate, according to early June numbers from one real estate expert.
47 percent.... what a doozie >home sales plunged by 47 per cent year-over year for the week of June 10-16, while condo sales dropped by 24 per cent. Those declines are even sharper than his numbers from the first week of June, when the numbers declined by 44 and 22 per cent, respectively.
This is exponentially worse than the US bubble exploding.
Homes in Leaside that were listed for $1.8M are only selling for $1.2M - 33% DROP in 2 fucking months
Ethan Campbell
Jordan Peterson.
Adrian Nelson
>0099
Massive correction underway. it will only speed up.
Ryan Morgan
I hate doing the canada threads. Lost a bet this morn in brit/pol now here I am. >once i reach page 10.... I'm free
Kayden Hughes
there won't be a housing crash. The rest of the economy crashed already driving up prices for building materials transportation construction and labor which keeps driving up housing prices
Evan Torres
These houses were only $300-400K ~2005....... Canada's entire economy is dependent on bubble housing prices since anyone who can afford to spend uses their home equity line of credit
>DOTR is coming
Wyatt Powell
soon hopefully. the alternative is the chinese money never stops, makes up for the drop - and then quality of life still goes down while suffering goes up.
Julian Bennett
GOOD! HOPEFULLY THIS WILL DESTROY CANADA.
Trudeau gets a no faith vote, new government has to form... LET IT BURN.
Liam Moore
chinese money is a meme its mortgage insurance
Jason Carter
I know that but I wasn't going to do a comrehensive financial thread here.
I was gonna do a seperate thread on it later but post what you got if you want to get it out there.
Benjamin Myers
let me find my oc pasta
Luis Gray
unleash the beast my dude
Cooper Green
The least canadian PM
Jayden Reed
good news for those too big too fail:
>New ‘bail-in’ regime for Canadian banks will ease burden on taxpayer in case of crisis
>The federal government previously stated that bank deposits would be protected from any bank recapitalization and wouldn't be subject to the bail-in regime
taxpayers, temporarily spared. Depositor; you're now on the chopping block bucko
Canadian housing has nearly tripled in 10 years. A single detached house has gone from about $200K CAD to over $800K CAD.
CMHC has $20B in assets and $946B in liabilities >50:1 leverage
Banks have lent out a trillion dollars in mortgages for hyperinflated crackshacks while removing any risk of default for them by offloading them to the CMHC (mortgage insurer). At one point, the CMHC allowed 40 year mortgages (in 2008 60% of all new mortgages were 40 year terms), with 0% down (cashback mortgages were a thing with 7-10% cashback), and no maximum loan value. In 2008, over 90% of mortgages were insured by the CMHC (read:
>the entire Canadian housing market is subprime
CDIC = FDIC
Insures up to $100K.
CDIC has $3.4B in assets CDIC has $679B in liabilities >200:1 leverage
Both CMHC and CDIC are backstopped by the government.
A 20+% correction would wipe out the CMHC and at least one major Canadian bank as they have uninsured mortgages (already happening with Home Capital, the Canadian CountryWide). A bank being wiped out would wipe out the CDIC.
The CDIC and CMHC being wiped out would require the Canadian government to issue hundreds of billions of loonies in new debt, sending the loonie to sub-50 cents, possibly to 20-30 cents or even hyperinflating.
>The Day of the Rake is nigh
Daniel Miller
>What's happening now? The CMHC has been reigned in to a max loan value of $1M, max amortizations of 25 years (from a high of 40), 5% downpayment on the first $500K, 10% on the next $500K (7.5% on $1M).
People have been using "alternative lenders" who loan $2-3M on self-declared income or with fake documents. Now these lenders are blowing up and not making new mortgages, hence prices have stagnated or dropped (as in Van, already down 15% this year).
Once a massive across the board drop occurs, lots of people who are leveraged to the tits with negative/0/5% downpayment 30/35/40 year mortgages will be underwater (they will owe more than they can sell their house for).
>Canadian mortgages are all Adjustable Rate Mortgages (ARMs) that reset every 5 years
When renewal comes up, which is soon for a lot of 2010-2012 mortgages on 40 year terms with negative/0/5% downpayments, they will be forced to come up with hundreds of thousands of cash to bring their mortgage Loan-to-Value back down to 80-95%. 99% of people won't be able to come up with the money, so the bank will write off the mortgage with the CMHC mortgage insurer, who will pay the bank the loan back then take possession of the house and do a fire sale, and then go after the homecuck for the balance which will be hundreds of thousands for life. Bankruptcy can't discharge CMHC debt since it is Crown debt.
In fact, banks can call in mortgages at any time for any reason (lol). So if they see prices dropping, they will pre-emptively call in mortgages and write them off to stay afloat. Once this occurs, it's a race to the bottom as banks are forced to call in more and more mortgages to stay afloat (in order to maintain their Tier 1 capital ratios with marked market values of the houses on their books)
>A significant price drop will put millions of homecucks underwater >Banks call in mortgages >Homecucks can't come up with margin >CMHC bails out banks and dumps toxic houses on market collapsing prices
Ryan Flores
...
Chase Fisher
>NINJA lenders Home Capital Group, the "CountryWide" of Canada that does jumbo ($2-3M) NINJA (No Income No Job or Assets) and liar loans (self-declared income), has a $20B mortgage book.
In 2015, they were forced to cut ties with nearly 50 brokers due to massive fraud (homecucks using forged documents or lying about their income). They estimated $2B in mortgages on their books are fraudulent. They don't know which ones. In fact, the number is likely to be far higher. The Ontario securities regulator recently accused the former CEO/CFO of material fraud by lying to the public (the # of fraudulent mortgages is in fact far higher).
As a result, people have been withdrawing nearly all their savings from Home Capital's High Interest Savings accounts. These are term deposits and must be paid out immediately; the run on Home Capital has resulted in their HISA account going from $2B to under $400M in just under a week. As a result, they obtained a $2B credit line from a government pension fund at 22.5% interest and drew down $1B today to stay afloat.
They are essentially bankrupt. They cannot borrow at 22.5% and loan at 3%. Their stock dropped 65% on Wednesday last week and over 30% today. The Canadian bank regulator (OFSI) is "staging" them (seeing how bad their books are). It's rumoured they are terminal, and the OFSI is forcing them to liquidate. This will result in hundreds of thousands of million+ cuckshacks flooding the market, crashing prices.
Luis Adams
>D-does this mean that sooner I can afford to buy a house in Canada?
Ian Price
When the bubble pops I will buy me some land in Canada.
Charles Moore
Turks stay out.
Grayson Anderson
Why not choose the USA?
Asher Peterson
I always thought that it was slightly suspicious that Trump was doing deals that gain a shit-ton of money for America, maybe it is all to stave off a Canadian-led housing crash?
Isaiah White
>Implying turks can afford to have multiple homes I just want some land in a rural area with a farm or something like that.
Not gonna be there very often. I want this as a protection for an emergencies like pandemic, war, collapse of our financial system.
Grayson Rogers
Canada is less populated. Also see
Noah Bailey
>The Canadian dollar weakened against its U.S. counterpart on Tuesday, erasing recent gains as a drop in oil prices offset stronger-than-expected domestic wholesale trade data.
Its funny because 3D printing will make housing cheap as fuck.
who would buy a stick house at that point
unless of course.... they ban single dwelling homes .....
Colton Peterson
Don't forget imaginary jobs. Why hire people when you can pretend to hire chinese and get 5k per month. Why start a business when a home increases in value $500 per day.
