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Originally Posted by blankall
This article was from over 2 years ago. Since then housing prices have increased dramatically. Up about 60-70% in Toronto. If we could somehow rewind housing prices by 2 years without devastating the economy, I'd be more inclined to agree with you.
The article also uses 1985 as a reference point. 1985 was at the very lowest point of our last housing crash, and a point where the government was purposely making it difficult to borrow capital. So basically, 2 years ago things were very comparable to one of the most historically difficult times to buy housing in Canada's history.
Now that prices have risen another 60-70% where's the comparable? It doesn't exist. This is a situation that has no comparables in Canadian history. The younger generation is faced with a situation without any comparable. Let that sink in.
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1985 wasn't even close to the worst. In 1981, mortgage rates broke through 20%. Thousands of people simply walked away from their homes because they couldn't afford the renewal.
Let that sink in.