A Canada Mortgage and Housing Corporation (CMHC) sponsored group told Parliament that home prices should stop rising because the increase mainly helps older homeowners, especially those over 55..Last Wednesday, the prime minister said, "house pricing cannot continue to go up.” However, he did not support setting limits on prices..“We can no longer tolerate the gap between home prices and local earnings growing any larger,” a University of British Columbia group Generation Squeeze wrote in a submission to the Commons Finance committee. .“Federal housing policy must be recalibrated to advance the goal of ensuring home prices stall so that earnings can catch up.”.According to Blacklock’s Reporter, Generation Squeeze said cabinet must “require home prices to stall.” .It complained of “runaway home prices driving up wealth inequity and crushing affordability for younger generations.”.Earlier, the same group got $450,000 from the CMHC to write a 2022 report. This report suggested a yearly equity tax of $5.8 billion on homeowners..The report Wealth and the Problems of Housing Inequity Across Generations was not accepted when it was presented..“Although rising prices are bad for younger generations, they have simultaneously created wealth windfalls for many homeowners, especially older Canadians who have been in the market for longer,” Generation Squeeze wrote the Finance committee. .“Compared to 1977, the combined value of principal residences in Canada jumped by over $3 trillion. Two-thirds of this additional housing wealth is owned by those over 55.”.On September 13, Prime Minister Justin Trudeau said that houses in the country cost too much..“Prices have come far too high,” said Trudeau. .“It’s not fair.”.“House pricing cannot continue to go up,” said Trudeau. .“Everywhere they are too high.” .In August, the average price of homes in Canada increased by 2% from the previous year, reaching $650,000. This information comes from the Canadian Real Estate Association's report released on Friday..Provincial averages ranged from $956,000 in British Columbia (up 5%) to $832,000 in Ontario (unchanged), $498,000 in Québec (up 5%), $440,000 in Alberta (up 4.5%), $402,000 in Nova Scotia (up 7%), $367,000 in Prince Edward Island (unchanged), $358,000 in Manitoba (up 4%), $328,000 in Saskatchewan (down 0.5%), $295,000 in Newfoundland and Labrador (up 3%) and $294,000 in New Brunswick (up 3%)..Romy Bowers, the CEO of CMHC, in 2021 Access to Information records said there was a “need for home prices to stall.” Bowers did not repeat the comment publicly..“Intellectually, she seems oriented toward the need for home prices to stall, but she did point to a range of caveats,” said an October 8, 2021, email circulated among managers at the CMHC. .“Intellectually, she indicates that her own personal view is that real estate being 14 percent of GDP is not a strong path for Canada.”
A Canada Mortgage and Housing Corporation (CMHC) sponsored group told Parliament that home prices should stop rising because the increase mainly helps older homeowners, especially those over 55..Last Wednesday, the prime minister said, "house pricing cannot continue to go up.” However, he did not support setting limits on prices..“We can no longer tolerate the gap between home prices and local earnings growing any larger,” a University of British Columbia group Generation Squeeze wrote in a submission to the Commons Finance committee. .“Federal housing policy must be recalibrated to advance the goal of ensuring home prices stall so that earnings can catch up.”.According to Blacklock’s Reporter, Generation Squeeze said cabinet must “require home prices to stall.” .It complained of “runaway home prices driving up wealth inequity and crushing affordability for younger generations.”.Earlier, the same group got $450,000 from the CMHC to write a 2022 report. This report suggested a yearly equity tax of $5.8 billion on homeowners..The report Wealth and the Problems of Housing Inequity Across Generations was not accepted when it was presented..“Although rising prices are bad for younger generations, they have simultaneously created wealth windfalls for many homeowners, especially older Canadians who have been in the market for longer,” Generation Squeeze wrote the Finance committee. .“Compared to 1977, the combined value of principal residences in Canada jumped by over $3 trillion. Two-thirds of this additional housing wealth is owned by those over 55.”.On September 13, Prime Minister Justin Trudeau said that houses in the country cost too much..“Prices have come far too high,” said Trudeau. .“It’s not fair.”.“House pricing cannot continue to go up,” said Trudeau. .“Everywhere they are too high.” .In August, the average price of homes in Canada increased by 2% from the previous year, reaching $650,000. This information comes from the Canadian Real Estate Association's report released on Friday..Provincial averages ranged from $956,000 in British Columbia (up 5%) to $832,000 in Ontario (unchanged), $498,000 in Québec (up 5%), $440,000 in Alberta (up 4.5%), $402,000 in Nova Scotia (up 7%), $367,000 in Prince Edward Island (unchanged), $358,000 in Manitoba (up 4%), $328,000 in Saskatchewan (down 0.5%), $295,000 in Newfoundland and Labrador (up 3%) and $294,000 in New Brunswick (up 3%)..Romy Bowers, the CEO of CMHC, in 2021 Access to Information records said there was a “need for home prices to stall.” Bowers did not repeat the comment publicly..“Intellectually, she seems oriented toward the need for home prices to stall, but she did point to a range of caveats,” said an October 8, 2021, email circulated among managers at the CMHC. .“Intellectually, she indicates that her own personal view is that real estate being 14 percent of GDP is not a strong path for Canada.”
