Are young homeowners doomed if house prices drop?

That’s quite a headline on this CBC article.

…the Canadian Centre for Policy Alternatives suggests that one in 10 homeowners under 40 will be underwater on their mortgages — meaning their debts will be greater than their assets  — if real estate prices crash as expected at some point in the near future.

Right now, real estate prices are overvalued by anywhere from 10 to 30 per cent, according to Bank of Canada estimates. Eventually, most analysts say, the market will correct itself and prices will go down, either due to declining incomes, rising interest rates, or a combination of both.

When that happens, homeowners under 40 will be disproportionately affected — not because they stand to lose more actual dollars, but because they are debt-strapped and will see a bigger drop in their net worth, the study argues.

Realtors and economists say not to worry. Read the full article here.

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paulb
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http://www.paulboenisch.com

HAMster
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HAMster

Ya I was reading some comments on an article (on CBC I think) about government intervention on house prices and the poster was saying it wouldn’t be “fair” to restrict offshore buyers because it would affect Canadians who had taken on huge mortgages… like it’s anybody else’s fault that some dummies overbought their houses.

GreenSalad
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GreenSalad

“I went to church every Sunday growing up and my Anglican preacher would say every Sunday, ‘If you can help, you should,” she said. “And that’s what we want to do.”

http://www.ctvnews.ca/politics/b-c-premier-says-refugees-may-get-warmer-welcome-in-smaller-communities-1.2659387

Well, well Christy…..you can start by helping the young Canadian tax paying REFUGEES who are being forced out and are fleeing Vancouver. I’m sure your Anglican preacher would tell you that “CHARITY BEGINS AT HOME”.

Vanco
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Vanco

Would people on this board decry HAM if they owned homes?

History
Guest
History

http://wolfstreet.com/2015/11/16/foreign-investors-dump-canadian-money-machine/

oh my, how can these hot money holders do this to us? We, the investors in Canadian bonds and stocks, esp. the gold and oil stock punters!!

History
Guest
History

more clues pile up, the Pluto/Uranus square correlate to Pluto/Uranus conjunction. What was then 1968 Tet invasion, by Nort Vietnam Ming, is now the re-patriation of Listed Chinese companies from North American markets.

http://reuters.com/article/idUSKCN0T416920151115

As China Firms Walk Out On Wall St., Spurned Investors Demand Payback (Reuters)

http://theautomaticearth.com/2015/11/debt-rattle-november-16-2015/

The Chinese are going to take their money and go home, at least on the stock markets. Remains to be seen what they have in mind for all that Real Estate.

History
Guest
History

u guys understand the gravity of what I say?

the Financial version of the Battle of Tet, 1968?

Imagine what that will be like as China seeks to exit on the cheap. They understand there will be casualties, or sacrifices, as the French Goo so painfully show. If the French kill their own.. so will China. They now have the message, to leave their own behind, esp if one considers the uber leverage West Coast RE spec.

tedeastside
Member
tedeastside

today in California…

http://il7.picdn.net/shutterstock/videos/10611872/thumb/1.jpg

you could live not 5 minutes from here for less than a dump in crapcouver.
btw hows the weather in BC today

Corrupt in Canada
Guest
Corrupt in Canada
southseacompany
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southseacompany

Meet Bill Morneau:

“Canadian Finance Minister: We’re Watching Housing Closely”, BNN video

http://www.bloomberg.com/news/videos/2015-11-17/canadian-finance-minister-we-re-watching-housing-very-closely

“Canada’s new Finance Minister Bill Morneau joins Bloomberg TV Canada’s Pamela Ritchie in an exclusive interview from the G-20 meeting in Turkey to discuss risks in the Canadian housing market and how he plans to use $25 billion Canadian dollars in infrastructure spending to boost the Canadian economy.”

Oracle
Guest
Oracle

Who cares if Vancouver is unaffordable anymore?

Population growth is making it unliveable. Traffic was a nightmare by Alex Fraser Bridge tonite.

Metro Vancouver will soon become gridlocked. Only way out of this mess is to tax cars so poor can’t afford to. Then what? Caucasians with million dollar detached homes (like Vanco) will be stuck because they can’t afford to drive.

I’m actually enjoying Vancouver implode….the people voted the mess in!

I hope we grow by 1 million people in the next 20 years AND no new highways are built, no new hospitals, no new universities, schools, etc.

Loving it.

Im planning to move out.

wizard sleeves
Guest
wizard sleeves

California: where you can enjoy drought, bushfires, Chinese smog, and also surf in the same day.

Shut It Down Already
Guest
Shut It Down Already

Anybody who says traffic is bad in Vancouver has never travelled. Period.

Westside Realtor
Guest
Westside Realtor

Inflation warming up/turning?

Interest rates (and mortgage rates) going higher?

If this current trend holds then….game over?

Don’t forget this fact..we live in interesting times.

WSR

MikeS
Member
MikeS

Hey wow it’s WSR dropping a truth-bomb again. Been a while!

bestplaceonearth
Guest
bestplaceonearth

not sure whether the young homeowners doomed if house prices drop; but i know for certain this blog’s posters have been doomed for a long time, so price is not matter either way.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

want to see traffic, go to central richmond at noon. the “dim sum rush” is pretty bad. not as bad as LA, but let’s not forget that richmond’s popluation is 200,000.

History
Guest
History

Richmond as busy as Saigon…

space889
Guest
space889
@StupidityCheck – And your beloved democracy loving US and Canadian gov’t supported moderate rebel groups which included the likes of Al Qaeda, Al Mursa, and frontrunner groups to ISIL/ISIS as well as many affliated groups. Say what you want about Assad, the truth stands that before this clusterf started by US/France/etc, very few of the currently displaced 4 millions+ Syrians felt the need to make long, life risk journey to get to Europe, and had a fairly stable life. Very few of them felt the need to join an extremist groups. In fact, they seem fairly content with their life. Then US has to go in and stir shit up, and Harper’s Cons just can’t wait to get in on the bombing, and look at the human crisis now happening. And you are blaming China for actually support the current… Read more »
$1000 for Space's address
Guest
$1000 for Space's address

@spacefuck

I can’t believe how utterly fucking retarded you are. I wouldn’t piss on you if you were on fire.

patriotz
Member

@20:

There are not three alternatives in Syria. There are only two: either Bashar al-Assad’s regime survives, or the Islamists take over. Really serious Islamists, who hate democracy, behead people, and plan to overthrow all the other Arab governments before they set out to conquer the rest of the world.

Reality sucks sometimes, but refusing to see it sucks worse.

http://gwynnedyer.com/2015/the-russians-in-syria-humbug-and-hypocrisy/

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

Rising home prices are keeping Canadians from starting families, survey says

http://www.vancouversun.com/rising+home+prices+keeping+canadians+from+starting+families+survey+says/11523472/story.html?__lsa=d18b-164a

that’s ok. young ppl can live in condos, ride bikes, instagram their breakfast, experiment with facial hair, smoke lots of pot and generally act like they never moved out of residence. (showers are optional). they’ll be happier anyways.

HAMster
Guest
HAMster

#20
yes, why waste good urine?

space889
Guest
space889

@$1000 for Space’s address – Getting violent on this forum for dissenting opinions….

btw, no one is preventing you from going over to Syria and putting a stop to Assad. I hear ISIS is always welcoming new recruits.

DaMann
Member
DaMann

I actually have to post in defense of Space

Assad should have been left alone. Syria was a FAR better place with him ruling. Was it perfect? Hell no, but right now it’s a hell hole and may never get back on track. Same goes for Libya. What people don’t understand is that it’s the Middle East. It’s not the west. Sometimes these places need dictators to keep all these war factions in check. you don’t force democracy, it never works. It has to come from within. The west time and time doesn’t get it.

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