any market built on credit is a house of cards. One major difference in Canada is that the government's been cheating and gluing them together on purpose (CMHC + abnormally low interest rates) instead of allowing a free market. Now, the same government, is literally using a glue gun to try and remove that dependency by heating it up and peeling away at its layers. lolQrewpt wrote: ↑Jan 8th, 2018 8:28 pmIt's refreshing to read your post, I think you hit the nail on the head. So many people seem so non-chalant over debt and dismissive of the downside.
We've had declining rates and appreciating prices for so long that it seems unfathomable that it could be any other way.
Year over year the vast majority of housing is not even put on the market, so even if a small percentage of people at the margins are affected and are forced to sell, it's quite possible they can move the market and have potential to cause a cascade as "equity" evapotates on those dependant on it for their Helocs.
I think if it all goes to plan, RE wont be a sexy market anymore and speculators will move away, essentially normalizing it (2-3% annual gains). Also, if the CRA and FINTRAC do their thing to keep busting money laundering in Vancouver, you'll see the rats head for the ocean, the more Canada becomes a less hospitable place for that sort of activity. (but i have my doubt any politician has the country's best interests at heart, over the interests of their own pockets)