It has turned out that overpriced houses on the market which others were interested in buying will not be made available for leasing or for purchasing. It’s sad to say that the chances of millennials buying homes in Canada seem bleaker as the houses are being used as financial investments. There hasn’t been any intervention by the government to see to this problem as at now. In order to calm the ongoing repercussion of the Brexit vote, central banks have chipped in some amount of cash into the worldwide economy, thus making the real estate investment a rigorous financial speculation.
The CBC News reported that there was no housing bubble according to the mortgage specialists in Canada. Vancouver also faced the same issue of ridicule. Even though the government has been making empty promises to sort the housing bubble, there hasn’t been any intervention whatsoever. The growing giveaway of smart money coming in from other countries into Canada is a sign that the real estate market as at now is a good investment, which meant the cost of houses will continue to be firm.
The government has been hesitant in putting a lid on the escalating prices of properties and are lagging behind in doing anything about it. B.C.s were not able to have control over the increasing prices of the houses in most areas even though they had some rules laid down to regulate the economic forces.
Bloomberg reported and said that “Traders, who have consistently been better at projecting the path of interest rates than the Fed itself, are now pricing in a greater probability that policy makers will cut rates in upcoming meetings than raise them.” According to the Governor of the Bank of England, Mark Carney; he mentioned that the economy needs more push, with a provided incentive for low-cost money to be available in the economy. Yellen
According to the Governor of the Bank of England, Mark Carney, he mentioned that the economy needs more push, with a provided incentive for low-cost money to be available in the economy. Yellen has no intention of increasing their rates till 2018 according to market dealers.
Mark Carney said that the economy seems to be taking a downfall and it needs to have financial strategy implemented. The interest rate in most European countries is falling, along with the United States and England. China is likely to follow soon. The currency is now low and practically free and the inflation is far more than the interest rates.
Those with smart currency are trying to have it converted to hard currency which has made the stocks increase even though profit seems low, and the price of houses go up despite the expensive rents. Houses have worth over other assets and it protects, shelters and relieving. The minister of Finance, Bill Morneau is looking for ways to tackle the problem concerning house affordability and encouraging cheap money. The best thing is to use one’s money to purchase things that will be of great worth even if the value is indefinite.
There have been numerous warnings of low rates having an impact on the economy and society at large. Although there is a bubble is likely to pop, it hasn’t yet happened till now. The young Canadians will feel the need to intervene and voice out their opinions about the housing crises eventually. But for now, there will be a flow of cash into property as long as the price continues to escalate.