💯 it’s not a supply problem. It’s a problem that Canadians put all their eggs in one basket and their houses become their retirement plan. They just keep buying houses at ridiculous prices.
Discussion
Keep in mind, when the Canadian dollar is debased it comes directly on the backs of wage earners. The USD debasement is exported across many countries internationally. This could be one factor in why Aussie and Canadian real estate have outperformed US since 2008.
I think it’s more that US had its crash and people came to the realization that real estate isn’t a sure bet. Americans are also more likely to hold a variety of assets. Beavers love their houses and it’s made a lot of people a lot money. Recency bias.
Sorry, I don’t really understand what you mean.Are you taking about the outperformance in relative terms or in real terms? Or do you mean that the Canadian market has outperformed because the usd is stronger and Americans are biting Cad properties?
Can RE prices have outperformed US prices significantly. I think part of the reason for that is because the effect of the expansion of the CAD supply due to low rates is felt only in Canada. I’m theorizing that skyrocketing real estate prices are a strong indicator of debasement as Canadians end up monetizing their house as their SOV rather than Canadian dollars.
Oh, I see. The majority of those printed dollars have definitely found their way into the real estate market, rather than into the expansion of productive assets.
The oecd has stated that Canada will be the laggard over the next 15-20 years due to our lack of investment in infrastructure etc. our productivity gains have dwindled and will continue to hinder our prospects of growth moving forward.