Canada's Housing Market Crisis

During the early 2000 's, the United States housing market experienced growth at an unprecedented rate, leading to historical highs in home ownership. This surge in home buying was the result of multiple illusory financial circumstances which reduced the apparent risk of both lending and receiving loans. However, in 2007, when the upward trend in home values could no longer continue and began to reverse itself, homeowners found themselves owing more than the value of their properties, a trend which lent itself to increased defaults and foreclosures, further reducing the value of homes in a vicious, self-perpetuating cycle. The 2008 crash of the near-$7-billion housing industry dragged down the entire U.S. economy, and by extension, the global economy, with it, therefore having a large part in triggering the global recession of 2008-2012.

b) Lack of supply- Along with the presence of higher demand in the housing market of the country already, the lack of supply of affordable housing in Canada has aggravated the crisis even more. Due to the presence of excess demand in the market, the quantities of housing, especially the private sector profit-maximizing ones have increased the price of their housing facilities, which in turn has contributed significantly to the already existing problems of homelessness in the country.

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

Canada, is well known for being immigration friendly over the course of history and it is an ideology that Canadians value. Immigration offers an opportunity for Canadians to seal in crevasses within the Canadian economy and stabilizes it from leaks which causes inflations and recessions. However, as opportunity presents itself, trade-offs are likely to follow. Today, Canadians are facing challenges regarding unemployment rates as well as increases in the cost of living. According to Collacott Martin, a senior at Fraser Institute who represented Canada in the department of external affairs, the housing prices are rising due to an increase in population among large cities in Canada. Collacott, predicted that newcomers of Canada cost between

This article, Why Immigration is a chequebook issue, is written by David Olive, a writer in the business section of the Toronto Star. This article was written in October of 2015, which is just when the oil price, the backbone of Canada’s economy, began to fall. This implies that Olive’s article was created in order to bring up the issue of immigration and how it may have an impact in this crucial time of Canada's economy. Olive’s stance on the issue of immigration is that immigrants will make Canada more advanced economically and technologically. Throughout this article, Olive uses a positive tone toward immigrants, explaining how they will benefit Canada, through saying that immigrants are accountable for Canada's “unlikely high standard

Within the past decade, Canada - specifically ontario, has seen and experienced a rapid increase in its housing market. Although some speculate a crash nearing, its strong growth in Ontario has become one of this decade’s largest issues. During the year of 2016 the average price of a home in the metropolitan area was $688,011, however, prices have increased by 33% in 2017 making the average home worth $916,000 dollars. This issue presents many difficulties as it affects Canada’s economy, it’s residents, immigrants, and more. Although some have tried to pass bills in order to reverse the increase, the presented plans are much worse. Take for example, Kathleen Wynne's proposed “foreign buyers tax”. With a plan as such being passed, all of

This survey was introduced to observe the way society lives in today's world, and how they live paycheck to paycheck. The Canadian Payroll Association had a conclusion after this survey that most Canadians are not happy with the way they live. Because of the weak economy, Canadians believe that they are not going to be able to retire at an early age, there just won't be any money saved. Statistics prove that the economy in the housing market is the biggest factor most families face in today's world because society dictates that we need things in life to survive. People are living above their means, and that’s why the credit card companies are getting richer.

Every year, newcomers arrive in Canada carrying colourful expectations and excitements. Their contribution to our population, national growth, and workforces are important. Currently, we are experiencing a decline in population. As a result, the capability of national growth decreases. As educated, financially qualified and employable immigrants enter Canada, our labour market earns a chance to improve. The distribution of potentials benefits immigrants and citizens, regarding our multiculturalism and economy. Canada needs immigrants as much as immigrants need Canada. Therefore, annual immigration levels in Canada must be increased. “Canada is an association of peoples who have, and cherish, great differences, but work together because they can respect themselves and each other,” (Massey).1

The housing industry in the United States has not had any recent documented cases of wage inequality. This does not mean that it has not or is not happening. All countries across the world are actively taking steps to prevent wage inequality in the hosing industry. Many different areas must be examined and perhaps reconstructed in order to maintain the current positive wage arena in the housing industry (Australia’s

There are various issues that revolve around Canadian politics. These issues can include various subjects, such as economics, multiculturalism, health care, immigration, and foreign policy. An important issue in Canada that is discussed in this essay is Canada’s constant changes to its immigration policy in order to improve its economic goals and the labour market. These issues are changing by different policies that the Canadian government are putting into place, which creates a more strict system in choosing who can immigrate into the country. Three articles that thoroughly analyze Canada’s immigration policy in order to implement these changes are the following. The first article is named: “New Directions in Immigration Policy: Canada’s

Housing affordability can be defined as the ability to access appropriate housing at tenure or price which is not a significant burden upon household income. (1, 2) Australia has seen a significant decline in housing affordability; average house prices have increased by 147% between 2001 and 2011. This was not matched by increases in income. (1) This decline can be attributed to economic growth, population growth, more accessible finance and incentives for owners and investors. These factors create an incentive to buy and store wealth in housing, resulting in overinvestment and house price inflation. (2, 3) Consequently, this results in depletion of affordable housing for low-income households and increases pressure on social housing stocks. (1, 4) Supply and demand has a significant effect on housing affordability. (1)

The Canadian senior housing market is very broad, both economically and physically. Financial and medical needs have shaped the various different types of senior housing, resulting in benefits and disadvantages of each type. The senior housing market has had many changes over the past few years, due to the influx of baby boomers retiring. These retired baby boomers have started to rapidly shape the housing market not only for seniors, but for society in general. Senior housing choices influence the activity of the housing market, affecting both supply and demand.

To begin, a brief history recap of the financial crises in 2008 will be given. Following that will be a breakdown of how the financial systems were set up in Canada and the U.S. We will then, in detail, discuss the Canadian and the U.S financial markets, in particular, the housing market and how each country was affected by the 2008 financial crisis. Lastly, we will proceed to evaluate the overwhelming differences between Canada and the U.S; from their core financial system to mortgages that allowed the Canadian market to remain excluded from the dire consequences of the US market recession, which followed shortly after the financial crisis.

The Big Short is a movie that discusses the housing market crash in 2008. As you may know, the banks, the mortgage brokers, and the consumers were all affected by this collapse. On each level of the system, there were things that went wrong and that could have been changed that could have prevented the failure of the housing market.

After researching the foreign markets, our department proposes that Canada would be our direction to go with to expand our business. The selection that we made is due to many factors. One of the factors involved is that Canada’s housing starts for 2012 is down by only percentage points. (Centre for the Study of Living Standards, 2012) This allows us to believe that the economy is still strong in the Canadian foreign market. There is new construction going on in Canada and there is potential for the market to go back up.