Yep, it's different in Canada. Why? Canada actually had LESS income and GDP growth while household debt growth was MORE than the Americans over the last 30 years.
While some areas in Canada could very well be looking at a potential "soft landing", some cities are holding too much baggage and are destined for more than a "soft landing".
Hey Kevin as a I told you before "Its Different Here in Canada." My Financial Geniuses Friends here in Saskatoon are telling me theses even without having a basic knowledge in Finance. They just going to mention the mines, oil and gas drilling and etc. and then it is easy for them to tell that there will be another 10% increase in RE prices in the next 2 years.
ReplyDeleteYes because it is Different Here!!!!!!
A 10% increase would put the average bungalow and two storey near 400k. This is at a time when the average family income is well under 100k. Some people just don't get it.
ReplyDeleteWhile I believe that Saskatoon will not be hit as hard as other cities, ( Vancouver) first time buyers are being put into a vulnerable position as they need more leverage to enter the housing market because wages are barely beating inflation.
I think is just basic law of our civilization even going back to the times of the ancient Babylon, if people live above way beyond their means it won`t end well. It`s just a matter of time. Kevin, even though the fundamentals of the banking system of the US compare to us here in Canada is not the same, I firmly believe that the principles is still the same wherever you go. People should live within their means and this is not what happening right now......
ReplyDeleteSaskatchewan is not immune as our economy is firmly tied up with the price of commodities in the world market.