https://padlet.com/kevingough/rf78wu6bobx7 Money Matters Assignment 2 en-us 2019-03-29 15:35:07 UTC 2023-04-06 22:11:21 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Simplehouse.png vincentbourre97 https://padlet.com/kevingough/rf78wu6bobx7/wish/346605877 In the link posted below is a video regarding the affordability of Canada's housing market. Two Real estate agents discuss what the market is looking like in Toronto and Vancouver. As well as what changes may be in the near future.

The housing market is relatively slow at this moment because of unsure interest rates and new buyers wanting to "wait it out". Homes are taking longer to sell, especially in Toronto were the condo market is through the roof. Buyers feel safer paying a 20% deposit on pre construction  over the course of 2-3 years where, to wait until they can afford a mortgage.

]]> 2019-03-29 15:44:10 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346605877 kevingough https://padlet.com/kevingough/rf78wu6bobx7/wish/346635311 This is a link to RBC's monthly report of the housing market in Canada. It provides information on rising and falling of markets in key areas like Toronto and Ottawa, as well as the trends and whether the market is generally good or bad. 
According to the report, this month is not a good one for the housing market. Resale value has fallen the lowest since last year, and year-over-year price growth is negative for the first time in ten years. This is especially significant right now in Calgary, Edmonton, and Vancouver

]]> 2019-03-29 16:57:49 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346635311 kevingough https://padlet.com/kevingough/rf78wu6bobx7/wish/346638969 This image compares Canada's housing market in two separate ways.  Firstly in the line graph, it compares nominal house prices against the average income for the US and Canada. The bar graph compares both countries again, but uses median (middle) home prices.
The goal of this image is to show that the housing market in Canada is not actually that bad, but I think it does not exactly hit the mark. This is because I believe it makes more sense to compare the average income, as it takes into account everybody's income whereas comparing the median income gives a less accurate representation of what everybody is making and can therefore afford.]]> 2019-03-29 17:08:06 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346638969 kevingough https://padlet.com/kevingough/rf78wu6bobx7/wish/346645667 In this video, Larysa Harapyn  of the Financial Post interviews Murtaza Haider and Stephen Moranis of Haider Moranis about their predictions for the 2019 housing market. While they agree that no prediction is correct, they are cautiously optimistic moving forward that Canada's market will continue to improve in 2019. 
This video was included to show that while it has been a tough few years for real estate, the market is on the rise especially in larger cities with bigger populations, according to Haider. While Moranis is also optimistic, he expresses that movement in the market will likely not be up or down, but more "sideways", meaning that while there is no extreme upward trend there is positivity in the market remaining good.]]> 2019-03-29 17:25:42 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346645667 vincentbourre97 https://padlet.com/kevingough/rf78wu6bobx7/wish/346646581 Below is an interesting chart showing how living situations have changed for millennial's between the age of 20-34. The charts statistics are taken from 2001 to 2016. It just goes to show how the Canadian housing market will affect everyone. ]]> 2019-03-29 17:28:08 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346646581 kevingough https://padlet.com/kevingough/rf78wu6bobx7/wish/346651465 The interview begins with Phil Soper stating his opinion on the mortgage stress test. The Toronto Real Estate Board has stated that the requirement that someone must be able to qualify for a mortgage 2% higher than they are actually borrowing, is something that needs to be eliminated. He says while these complaints are completely understandable, because when an industry is contracting and regulation gets in the way, it is natural for them to want to eliminate it. He thinks that it is beneficial for the long-term economy because having that requirement mitigates the risk of said mortgages.
This video was included to showcase the two different perspectives on the mortgage stress test. While you may agree that having to afford a mortgage 2% higher than what you need is unfair, you must acknowledge the fact that it does mean that the mortgages given will have lower risk factors.]]> 2019-03-29 17:40:09 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346651465 vincentbourre97 https://padlet.com/kevingough/rf78wu6bobx7/wish/346652509 CBC conducts a great report regarding the Federal governments new incentive to "help" first time home buyers with there mortgage.  They break it down in a very simple and understandable way for everyone to be able to grasp the concept. 

A young man is interviewed during the process of the video and gives his opinion on whether or not he believes these steps are enough for to get millennial's into the housing market. With concrete facts and examples provided in the video we can see that it does help but is still not nearly enough to be able to help millennial's. The government has to take bettwer initiative and built affordable housing from the beginning. ]]> 2019-03-29 17:42:39 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346652509 kevingough https://padlet.com/kevingough/rf78wu6bobx7/wish/346656913 This site states in the article's title that the market is "stable but struggling". In 2018, the market suffered a tough year after the condition of housing in 2017 and after a brief stabilization in the summer of last year, September trended towards lower sales. "Actual activity was down 19 per cent year-over-year in December, while the national average sale price dropped 4.9 per cent". This has been attributed to mostly the stricter conditions of mortgages (the mortgage stress test) and steadily rising interest rates. 
This website provides a counterpoint to some of the more positive outlooks for 2019, as it paints a picture of more of a struggle upwards and of general unchanging conditions, at least for this year.]]> 2019-03-29 17:54:41 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346656913 vincentbourre97 https://padlet.com/kevingough/rf78wu6bobx7/wish/346657350 Global News released a report talking about the housing market and it's affordability.  Mainly, Ottawa wanting to help Millennial's buying homes and how they believe that can be achieved.  It is said that the preferred construction for the past 20 years have been condos.  While we should now focus on affordable single detached homes for millennial's to be able to start there families.

The Canadian Mortgage and Housing Corporation has a plan for the future. They want to address the issue of the housing supply for all over the country and recently proposed a plan to see every Canadian with an affordable home by the year of 2030.]]> 2019-03-29 17:55:49 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346657350 vincentbourre97 https://padlet.com/kevingough/rf78wu6bobx7/wish/346662464 This article speaks specifically on Toronto's condo market and how it could get rougher this year. In the past few years the condo market was extremely big.  People opting to pay a pre construction price over the course of a few years and then paying a mortgage when they can afford it.  Although now the market looks to have slowed down.

A entirely new issues is the construction cost. How that has an affect on the market. The pre sales are done before even getting approval for drawings. By the time they are ready to start construction they are way over their heads with cost. 2018 saw more then 4000 unit cancellation. Condo's are now at an outrages price with a poor resale value. Which not only affect resent buyers but new buyers decisions in the first place ]]> 2019-03-29 18:08:06 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346662464 kevingough https://padlet.com/kevingough/rf78wu6bobx7/wish/346663589 2019-03-29 18:11:16 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346663589 vincentbourre97 https://padlet.com/kevingough/rf78wu6bobx7/wish/346671405 2019-03-29 18:32:50 UTC https://padlet.com/kevingough/rf78wu6bobx7/wish/346671405