Canada is a failed state

Is the real estate market cracking in Canada?
My property tax assessment dropped around 20%, average was around 10%. Valued July 1st 2023. Eight months have passed since, wonder how much more it has dropped.
Left coast, rural, about 20Km from a medium sized city.
Won't PL but this is a large chunk of change, about twice what I paid for my first house in the mid-nineties.
Some recent homebuyers must be in negative equity depending on their downpayment and when they purchased.
It would be nice if others chimed in about their property tax. Are you seeing the same thing?
Anyone looking to buy, I would say 'hold'.

I read car repos are up in the US which is one of the first bad signs. Spent your Covid gibs on a new car like every savvy investor? Repossessed? There should be a glut of good, cheap used cars on the market soon you should be able to pick one up.

US credit card debt is at an all time high, retail numbers are down but that is expected in a typical January. Problem is they were also down in December. Groceries and the general cost of existing (not called living anymore according to the youngsters sitting in their car ranting on Xnitter) is so high, people's spending habits have changed.

Sorry about the US info but it is more easily accessible.
 
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I don't think its over in Canada, but
Moosebonker said:
Is the real estate market cracking in Canada?
My property tax assessment dropped around 20%, average was around 10%. Valued July 1st 2023. Eight months have passed since, wonder how much more it has dropped.
Left coast, rural, about 20Km from a medium sized city.
Won't PL but this is a large chunk of change, about twice what I paid for my first house in the mid-nineties.
Some recent homebuyers must be in negative equity depending on their downpayment and when they purchased.
It would be nice if others chimed in about their property tax. Are you seeing the same thing?
Anyone looking to buy, I would say 'hold'.

I read car repos are up in the US which is one of the first bad signs. Spent your Covid gibs on a new car like every savvy investor? Repossessed? There should be a glut of good, cheap used cars on the market soon you should be able to pick one up.

US credit card debt is at an all time high, retail numbers are down but that is expected in a typical January. Problem is they were also down in December. Groceries and the general cost of existing (not called living anymore according to the youngsters sitting in their car ranting on Xnitter) is so high, people's spending habits have changed.

Sorry about the US info but it is more easily accessible.
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See 2008,

Whats happening is that mortgages are being renegotiated with higher interest rates currently.

This means that people who bought houses at interest rates that they could afford recently (ie, who bought over the past 5 years and largely in the midst of the pandemic when there was more 'easy money') are finding that they can no longer afford a renegociated mortage with a higher interest rate.

The fed increases the interest rate to curb back inflation, and this is one of the potential and likely consequences.

What the Canadian fed hoped was that they could curb back inflation with this method, and that it would be curbed back enough in the short run that we wouldn't face this effect too strongly.

You're not going to see people selling their homes because most people can't afford to buy new ones (lack of housing) and rent is insane.

What its causing and going to cause is more homeowners being forced to sell their homes (see former middle class boomers, retirees on fixed incomes, etc), and either moving to family members or going homeless. Theres basically no single room apartments left that are affordable.

The negative equity from when they purchased is what defines this entire thing if someone bought a house recently. When it comes to yuppie millineals and gen xers who found themselves earning 200k from a programming job for a few years while most of their nation burned and are now in this trap, I don't have much pity. When it comes to boomers who bought 2nd homes, zero pity. When it comes to people on fixed incomes, who this will hit the hardest, regardless of generation, I have immense pity.

I don't know if the real estate market is crashing, but yeah- its cracking. A competent government would step in
 
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lol
 
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Lynx Air is a budget domestic airline. The introduction of budget airlines forced Air Canada etc to drastically reduce their rates. Expect the remaining lines to increase fares. According to the article: "Despite substantial growth in the business, cost reductions and efforts to explore a sale or merger, the challenges facing the business have become too significant to overcome" (Carbon Tax anyone?)
Canada's Lynx Air files for bankruptcy protection, to cease operations on Feb 26
Reuters (A)
Feb 22
Canadian budget airline Lynx Air has filed for court protection from creditors and will cease operations on Feb. 26, it said on Thursday, as it struggles with rising operating costs, high fuel prices and increasing airport charges.
Despite substantial growth in the business, cost reductions and efforts to explore a sale or merger, the challenges facing the business have become "too significant to overcome", the company said.
The Calgary-based airline, which launched its inaugural flight in April 2022, said flights will continue to operate until 12:01 a.m. MT (2:01 a.m. ET) on Feb. 26.
Lynx will seek protection under the Companies' Creditors Arrangement Act, a Canadian Federal Act that allows large corporations to restructure their finances and avoid bankruptcy, while allowing creditors to receive some form of payment for amounts owed to them.
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DiscoRodeo said:
You're not going to see people selling their homes because most people can't afford to buy new ones (lack of housing) and rent is insane.
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I can think of a few cases where this is not true:
  1. anyone that owns investment properties -- there are plenty of people who bought up since 2019 and now need to dump them because even with rent increases they can't afford the mortgage payments
  2. anyone who is willing to move around -- willing to move to Saskachewan or rural Maritimes and able to work remote? willing to GTFO and go back to India or fuck off to the US?
  3. anyone who bought outside their means -- bought a 4 bedroom house you could just barely afford in a nice area and all of a sudden mortgage is too expensive? sell and move to the shit area, every city has one where house prices and rents are lower
 
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Lord Xenu said:
Lynx Air is a budget domestic airline. The introduction of budget airlines forced Air Canada etc to drastically reduce their rates. Expect the remaining lines to increase fares. According to the article: "Despite substantial growth in the business, cost reductions and efforts to explore a sale or merger, the challenges facing the business have become too significant to overcome" (Carbon Tax anyone?)
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ULCC is an unviable business in Canada due to low passenger volume, large distances, and unsubsidized user pay airport infrastructure (something that very few other countries do).
 
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Baraka Obama said:
I can think of a few cases where this is not true:
  1. anyone that owns investment properties -- there are plenty of people who bought up since 2019 and now need to dump them because even with rent increases they can't afford the mortgage payments
  2. anyone who is willing to move around -- willing to move to Saskachewan or rural Maritimes and able to work remote? willing to GTFO and go back to India or fuck off to the US?
  3. anyone who bought outside their means -- bought a 4 bedroom house you could just barely afford in a nice area and all of a sudden mortgage is too expensive? sell and move to the shit area, every city has one where house prices and rents are lower
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Yeah, Im mostly thinking of semi middle class people for 1)

If you have the money to spare sure you can sell at a loss, or if you didnt need it in the first place- sure you can do that

For 2, if you have remote work and are in the laptop class you can move to Saskachewan or rural communities, but most can't

For 3 though, theres no shit areas to move to anymore. 30 Indians in a house really fucks with the market
 
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DiscoRodeo said:
For 3 though, theres no shit areas to move to anymore. 30 Indians in a house really fucks with the market
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Looking at listings now.

City I live in you can move from my area to the not even that shit area, just a real pain in the balls to commute from, houses are half the price.

City I grew up in your can move from the nice area to the painful commute area for half the price, then you can really slum it and move a few streets over to the rough area (notorious for stabbings and not being safe to go out at night) and pick up a postwar box for half that.

You know the secret to Indian immigration? They can't drive here. Most of them have to move to Toronto or Vancouver because of that, without good transit the first couple years are fucked. So yeah I'm sure there's no options left in either of those cities, and Toronto specifically has almost a blast radius of expensive real estate extending a 2 hour drive away.
 
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Baraka Obama said:
Looking at listings now.

City I live in you can move from my area to the not even that shit area, just a real pain in the balls to commute from, houses are half the price.

City I grew up in your can move from the nice area to the painful commute area for half the price, then you can really slum it and move a few streets over to the rough area (notorious for stabbings and not being safe to go out at night) and pick up a postwar box for half that.

You know the secret to Indian immigration? They can't drive here. Most of them have to move to Toronto or Vancouver because of that, without good transit the first couple years are fucked. So yeah I'm sure there's no options left in either of those cities, and Toronto specifically has almost a blast radius of expensive real estate extending a 2 hour drive away.
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Are there any such places left that do not have meth/fent problems, native problems or French people looking to mock you?
 
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DiscoRodeo said:
Yeah, Im mostly thinking of semi middle class people for 1)

If you have the money to spare sure you can sell at a loss, or if you didnt need it in the first place- sure you can do that

For 2, if you have remote work and are in the laptop class you can move to Saskachewan or rural communities, but most can't

For 3 though, theres no shit areas to move to anymore. 30 Indians in a house really fucks with the market
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The whole point of buying rental real estate is not to make money from rent but it's a storage method for your investments. You make your money via capital appreciation when you eventually go to sell / when you need a large number of funds in your old age.
 
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