What happens when credit tightens?
What happens when credit tightens?
Last edited by Luckyinfil on Feb 25th, 2018 5:34 pm, edited 1 time in total.
Reason: Title edit
Reason: Title edit
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Feb 25th, 2018 5:34 pm
Feb 25th, 2018 6:02 pm
Feb 25th, 2018 7:51 pm
Astroid hits us and we all die... so wont matter.
Feb 26th, 2018 12:05 am
Feb 26th, 2018 12:14 am
Feb 26th, 2018 8:01 am
Feb 26th, 2018 9:23 am
Feb 26th, 2018 10:00 am
Feb 26th, 2018 10:38 am
Feb 26th, 2018 10:53 am
I am pretty sure your concern is same as your buddy's OP, how to get prices on level of 10 years back. Unfortunately even if all 4 full-time dedicated bears will keep creating new threads here it is not going to happen, you have to move on and accept reality.Qrewpt wrote: ↑ The OP raises a good point and everybody turns on him with sarcastic rhetoric about how detached houses will be 200k. So if you don't believe that our household debt is an issue then why, how will we deleverage while maintaining RE prices and sustaining the economy.
Won't deleveraging will occur? My concern is suffering the consequences brought on by reckless borrowers.
Feb 26th, 2018 11:14 am
This is just more rhetoric instead of answering the questions raised in the post directly.
Feb 26th, 2018 11:18 am
But the OP, as usual, offers no context to the graph and is just trying to be provocative to stir the pot.Qrewpt wrote: ↑ The OP raises a good point and everybody turns on him with sarcastic rhetoric about how detached houses will be 200k. So if you don't believe that our household debt is an issue then why, how will we deleverage while maintaining RE prices and sustaining the economy.
Won't deleveraging will occur? My concern is suffering the consequences brought on by reckless borrowers.
Feb 26th, 2018 11:27 am
What OP and many find difficult to understand that the relationship of household debt and home prices is not as simple as they think. There is certainly a relation, but it is not linear, but much more complex and multidimensional.Qrewpt wrote: ↑ The OP raises a good point and everybody turns on him with sarcastic rhetoric about how detached houses will be 200k. So if you don't believe that our household debt is an issue then why, how will we deleverage while maintaining RE prices and sustaining the economy.
Won't deleveraging will occur? My concern is suffering the consequences brought on by reckless borrowers.
Feb 26th, 2018 11:32 am
Yea there are 900k individuals making over $100k in Ontario. Last year was a record setting year in terms of house sales and in the city it was still only 9000 houses. It's not terribly hard to see that the upper echelon of income earners can fulfill these sales. Banks will definitely tighten up a bit but I don't they they are worried about a dual income couple pulling in a quarter million a year.IndyBeak wrote: ↑ What OP and many find difficult to understand that the relationship of household debt and home prices is not as simple as they think. There is certainly a relation, but it is not linear, but much more complex and multidimensional.
So is reckless spending a concern - definitely.
Are people buying much more than they can afford - certainly, but not all.
What everyone should realize is that there is no scarcity of people who can easily afford a million Dollar home in GTA. And as long as we have rich people in decent supply, current prices will find enough buyers. You don't need the entire 6 million population of GTA to have 200K plus household salaries.
Interestingly, if the prices indeed crash and a detached could be bought for 200K, I could easily buy one more while easily affording my current mortgage as well. And I am not even upper middle class financially.
Feb 26th, 2018 11:42 am
Feb 26th, 2018 11:58 am
Feb 26th, 2018 12:20 pm
Feb 26th, 2018 12:42 pm
Feb 26th, 2018 12:53 pm
Well, considering that graph only includes debt and not assets or net worth, it doesn't say very much. I have enough cash on hand to pay off my mortgage, but why would I when my savings account pays more in interest than my mortgage rate? So according to that graph, I have debt but positive net worth. Pretty pointless in a low interest environment.
Feb 26th, 2018 1:01 pm
Finporn in it's best...Click-bait title saying it's HAPPENED, while the agency saying it COULD happened (double caution on the way - warn it expect...)