Housing affordability is getting worse even though prices are falling. How is that possible?

Housing affordability is getting worse even though prices are falling. How is that possible?

Conventional wisdom states that falling prices should improve housing affordability. Though the logic is appealing, Canadian housing markets paint quite a different picture, with housing affordability worsening even though average housing prices have fallen. Unlike many other assets classes, housing markets are complex and heterogeneous, with no two homes (or buyers) being identical. As a…

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Housing starts suffer ‘steep decline’ in February as tougher mortgage rules finally take a toll

Housing starts suffer ‘steep decline’ in February as tougher mortgage rules finally take a toll

OTTAWA — The annual pace of housing starts slowed in February as higher mortgage rates and less stimulative economic conditions helped soften demand, Canada Mortgage and Housing Corp. said Friday. The housing agency said the seasonally adjusted annual rate of housing starts fell to 173,153 units in February compared with 206,809 units the month before.…

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Trudeau’s housing strategy is vintage Harper — it was a bad idea then, and it’s a bad idea now

Trudeau’s housing strategy is vintage Harper — it was a bad idea then, and it’s a bad idea now

Justin Trudeau wants his fans (and leftish voters) to think he’s nothing like Stephen Harper. Stylistically, that’s true. And the current prime minister is as nonchalant about deficits as his predecessor was obsessed by them. But if you think about it, their headline economic policies aren’t so different. Team Trudeau’s favourite sop to the middle…

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