Quote:
Originally Posted by Fuzz
This all sounds like it is reducing housing demand...so success?
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Overall housing demand is still high.
Obviously the demand will fall, as resale homes will slow down, which should ease new construction. Housing starts in Aug were 3% lower than July.
The question is however, with so many issues in the supply chain, what percentage do housing starts have to drop before it makes a REAL difference to the point of where you can safely say long lead times and lack of raw materials are no longer causing unnecessarily high prices. Appliances as an example are still very much a problem.
Understanding of course that even with all these interest rate increases, immigration is high, there are massive amount of unfilled jobs, and the economy hasn't blown up yet, which with the high number level of immigration one does wonder if it might happen. Wage suppression will start happening again as a lot of positions will be filled by foreign workers which will allow companies to spend more on other things outside of wage increases to fill positions.
From where I'm sitting, demand in the non over inflated housing market is still strong. I would not use Vancouver and Toronto as a basis of anything, as the real estate there is over priced, and who knows how much increases were driven by laundering or other shady stupidity.
Yes, prices have fallen overall in all markets, but when you start at 5, it increases to 10 and drops back down to 7, who is really complaining? Just the people that bought at the peak of the market without properly making sure they can pay their over inflated house price. And how many people is that really?