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The Canadian Real Estate Bubble’s Supply Shortage Myth Is Unraveling
Main Post: The Canadian Real Estate Bubble’s Supply Shortage Myth Is Unraveling
Top Comment:
The definition of demand is quite narrow. The people who need a place to live are still there, they have simply shifted from ownership to renting.
This can be seen in the recent skyrocketing rent rates.
The Canadian Real Estate Bubble’s Supply Shortage Myth Is Unraveling: BMO - Better Dwelling
Main Post: The Canadian Real Estate Bubble’s Supply Shortage Myth Is Unraveling: BMO - Better Dwelling
Top Comment:
"The BIS, the global central bank organ, produced research arguing central banks inflated real estate prices. They released a study attributing the global home price boom to monetary policy. Cheap credit was the primary driver they argue, not a lack of supply. Monetary policy mistakes were made around the world as they basked in easy growth."
Low interest rates cause housing price inflation. This has been obvious for years, but it's not the preferred narrative.
r/canada
Main Post: r/canada
Discussion about the supply and demand of real estate in Egypt
Main Post:
With the huge supply of real estate targeted towards the upper class, like the waves and waves of all the compounds in new cairo and 6th of october, can we safely assume that the prices would significantly decrease over time since there is not enough demand to cover this supply? as in not enough super rich people to invest in all these houses. Can we then go a step further to say that the decrease in prices would be significant enough to allow for people that are not upper class to eventually buy/rent and live in?
Top Comment:
I hate to be the breaker of bad news, but no. It has always been a pattern. Cities have always been built for the richer people, to "invest" but not inhabit. I'd wish it on our great failures of monetary policy leaders for the bubble to burst, but it never has.
Examples of cities we have built years ago and still are not completely inhabited:
6th of October: 25% inhabited Sheikh Zayed: 21% 15th of May: 39% New Cairo: 21% Al Shorouq: 18% Badr: 8% Al-Obour: 28% 10th of Ramadan: 49%
AND we're still building the new administrative capital. Now 6th of October, Sheikh Zayed, 15th of May, New Cairo, all started being built in the Mubarak era. Rich people keep buying, but they're not enough to actually use their property.
I surely hope that bubble gets burst, it's depleting our economy from its resources and capital, but given that it's the "safest" investment rich people have, it doesn't seem like it would anytime soon.
Conclusion; demand is there. But the demand isn't for using the properties, but to invest. It's a bubble waiting to burst.
Supply and demand keeps Hamilton-area real estate prices high
Main Post: Supply and demand keeps Hamilton-area real estate prices high
Top Comment:
It's mental how much some houses are going for. Yesterday I saw a house at Gage and Main sell for $680k. Fully renoed, sure, but squeezed in between Gage and the railroad right at the Main intersection?