sammyg68

Some Housing Schadenfreude

Hi just finished reading Garth Turners Book Greater Fool, I currently do live in Canada, and was wondering what will happen to our housing market as I wanted to enter it for the first time, so thats why I purchased his book, He does repeat himself alot in the book thats for sure, but he also makes alot of great points like income for the average household in Canada has not changed in more hen a decade, but housing pricing have gone through the roof, double are even triple in some places. What I would like to know where is the money coming from to afford these houses. The banks lended cheap money to people who should not of gotten a mortgage in the first place. And I also believe with our aging population here in Canada more of the baby boomers will be selling there homes added more homes to be sold on the market with less buyers, this can drive prices down. Tighter lending practices were also put in place this summer changing from 40 year zero down, to 35 years with a min. of 5% down, this brings downward presurre in the market as well. Plus once the speculators leave the market this also causes prices to drop. So Garth has made some great points in his book and I agree with him 100% that housing prices in Canada will decrease its just hard for people who own real estate to accept it.