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Originally Posted by blankall
Really depends a lot on the area that the houses are located in. I think we'll definitely see slides in outlying areas, that tend to be more linked to local salaries and actual affordability. Affordability for working families has definitely taken a hit.
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A familiar refrain. Mostly wrong though.
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I don't think we'll see that major crash though. The housing shortage issue only gets worse every day. The drop off we'll likely see will probably see things get closer to the way they were pre-pandemic. Then things will slowly start to creep up again as salaries go up. We'll also likely to see fixed rates drop below prime again, as the bond market changes.
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Bond rates are contingent on prime, not the other way around.
And let's keep some perspective here. The prime rate is now only 3.75%. Hardly the stuff of panic. But whoo, people suck at finances.
Regardless, it takes years to quell inflation. Years, boyos. Last time this idiocy happened it took
two decades before rates normalized in Canada.