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Trends in the Housing Market — Canada’s $2 TRILLION Debt Problem , With Nic Green!

1,721 views · Published 15 December 2016 · 40:47 · Indexed 25 October 2026

Channel: Mike Martins · 2016 · News & Politics

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In this December 14, 2016 edition of Trends in the Housing Market, I sit down with Nick, who works in real-estate valuation, construction consulting, statistics and financial analysis, for a long discussion about what is really happening inside Vancouver’s housing market.

This is a different episode because instead of simply going through the headlines, we dig into the mechanics behind the market: household debt, mortgage qualification, interest rates, foreign investment, affordability, construction, rental properties, immigration, property taxes and the possibility of a housing correction.

One of the biggest numbers we're discussing is Canadian household debt reaching approximately $2 trillion, while the household debt-to-after-tax-income ratio approaches 167%. The concern is simple: housing prices have risen much faster than ordinary incomes, leaving households increasingly dependent on mortgages and other forms of credit.

We also debate whether Vancouver is heading toward a major housing crash. Nick takes a more measured position. He believes detached homes could remain soft, particularly higher-end properties, but argues that lower-priced housing still has substantial pent-up demand. He also explains an important difference between Canada and the United States during the 2008 housing crisis: Canadian borrowers generally cannot simply walk away from a mortgage without serious financial consequences.

I take the more bearish side. My concern is that too many local families have already been priced out, household debt is becoming unsustainable, interest rates could eventually rise, and governments are beginning to introduce regulations intended to cool the market.

We even discuss similarities appearing in Australia, London and other English-speaking housing markets, along with the growing concentration of property ownership and what that could mean for the middle class.

This is an opinion and discussion program recorded in December 2016. We're trying to look forward and ask the question that matters:

Where will this housing market be one year from now—and where will it be five years from now?

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