Canada real estate is reliving 30-year-old history – analysis

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While the continuously growing prices in Canada’s real estate sector might come across as a shock for industry players and would-be market participants, an article from way back in 1988 shows that the state of the country’s most dynamic housing markets is nothing new.
Posted by The Globe and Mail real estate reporter Tamsin McMahon on social media, the near-30-year-old report focused on the impact of low mortgage rates on the then rapidly growing home prices in Toronto.
“Politicians and tenants’ groups have declared a housing ‘affordability crisis’ – again – and have called for a tax on speculators’ profits to cool down the frenzy,” the article read. “Dark words are muttered about how foreign money is to blame. Or yuppies.”
Another 1989 BCTV story provides a window on the Vancouver market of that era, which back then saw host to plenty of opposition to increasing foreign investment in the city.
“People like us, a young married couple and we've lived here all our lives, and we can't afford to buy a house,” the report quoted one woman as saying. “We save and we save, and it doesn't matter, because the prices keep going up because the foreign people keep coming in and keep buying.”
In an analysis for The Huffington Post Canada, industry observer Jesse Ferreras said that with just minor changes to the figures involved, one can see that the situation is essentially the same.
“Substitute the numbers for today's prices and such a story could have been published last week,” Ferreras argued.
  • Derek Austin on 2016-04-27 1:03:07 PM

    So this has happened before and the government still can't figure it out , they tell us to be smart, learn from the past yet the government does neither for the people.

  • George on 2016-04-27 10:23:10 PM

    So Derek you want a 'nanny' gov't that not only figures things out for you but also passes legislation that makes your life easier. Sounds like most Canadians - "Just let me be lazy and greedy at the same time"

    Many years of this same kind of voter short-sightedness has led to where we are today and the kind of complaint you are making. Our lawmakers are so busy pandering to special interest groups that we sink deeper into socialism every day. We get what we deserve; a choice between 3 socialist parties.

    Socialism sucks money from our pockets to feed big gov't - and they love the power it gives them. Next time an election comes around, demand more from a representative than pushing for beer in your convenience store.

  • John Deakin on 2016-04-29 12:15:05 PM

    Interesting as the early 90's saw a crash in Toronto prices.....history will repeat itself.

  • Mario Mammone on 2016-05-02 7:03:18 PM

    You make your money in Real Estate when you buy right!

    Cheap money = high prices!

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