Stupidity and Greed. They often come hand in hand do they not? Canada’s Housing Crisis is such a thing. The population of Canada often moves to large urban centers, where the jobs and services are. This creates demand for housing. Those who have homes in Toronto, Vancouver, and Montreal are pleased that their property values are continually increasing. Soon the demand for housing overtakes the supply of housing. The Real Estate and Developer Sector realize the gold mine that has been created for them and those who own homes already. Greed sets in. The existing homeowners realize their home is very much an investment nest egg that will continue to increase in value. The Real Estate Agent will drive the cost of these homes higher so they can get paid more commission. Developers build expensive houses so that they can charge big bucks for them. A cozy group of land speculators developed.
Along comes Premier Ford and His Conservative Fellowship. They see an opportunity to grow the economy, create housing for thousands, incorporate the hunger for profits and housing starts the public and developers have been salivating for for decades. The Liberal Administration’s lack of understanding of the big picture allowed housing bubbles to develop all over this nation. The very concept of affordable housing was ignored as administration after administration continued to let the market, the developers, and the real estate sector lead the way, taking their advice and possible largess as well. Fanned by the pandemic’s platform of rising costs due to a lack of supply(supply chain) the cost of housing goes sky high, beyond the public’s financial reach.
The Federal Government jumps in to control this crisis but calls it an attempt to control an overburdened economy. Interest rates rise, and bankruptcies begin to increase too. Building starts to break ground but is not fast or affordable enough. The greed we saw at the beginning of this process remains. If a developer can charge massive amounts for a larger home, why can they not do so for smaller housing units? Who is going to stop them? The public, who needs a place to live will not. The government, worried about its image will not. Premier Ford will certainly not stop capitalists from making massive profits. How could he, as a conservative and friend to all things corporate?
Where does the public stand? For the next few years out in the cold. It takes time to revamp a system, build housing starts, and decide who will build the needed infrastructure for these new sub-divisions. Still lots of red tape and political wrangling to deal with. Does local government have the time or ability to accomplish the promised 1.5 million housing starts Premier Ford promised? Why is the hold-up, the stagnation, and the increasing crescendo of noise about this crisis yet accomplishments not yet visible?
Politicians Promise Much. Money, expertise, and commitment. Has anyone actually sat down and asked some important questions like…
a. What type of housing units make sense?
b. Where should these units be made?
c. Who should benefit from this construction? Type of construction…lead by public or private concerns.
d. Can urban centers not build up instead of outward?
e. Should the Province detail plans for the type and # of units to be built? High rises, 3-4 story townhomes vs. single units!
f. Are Environmental factors of primary concern to these housing builds?
Have not heard these questions asked? How about asking if politicians, both local and Provincial are getting a share of this housing starts bonanza? You know, the Alexandre Duplessis and Huey Long Effect. Is there a chance of large-scale corruption tied to various public-private developments and what is being done about it?
Transparency demands accountability. Do you see any of this in what is going on?
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
