- Average home price is up $65000 in Canada this year
- CMHC suggests that a household should spend about 30% of their income on housing to be realistically affordable
- Long term assests can only be worth what people can afford to pay for them
- According to RBC families in Canada are spending over 50% of their income on housing while enjoying historical low interest rates
- The Canadian economy has lost over $100,000,000,000 ($100 billion) in economic output
- Highest unemployment in almost a century
- The inflation of assets in our economy outpaced the output of the entire economy
Inflation is coming according to the experts. Most are calling for it to hit over 5% in the next year. This will be a direct result of the debt being accumulated by government and the rate at which they are adding currency to the market. Traditional economic theory tells us that to control inflation, interest rates must rise. Clearly Canadians will not be able to afford rising rates.
All of this points to a change in the current Real Estate market. These are unprecendented economic conditions and there is no doubt that predicting it is difficult. That being said, if you are thinking about selling your home in the near future, there are a lot of good reasons to take advantage of the current seller's market and do it now.
#WeDoYourHomeWork
-Parry Lagler
