TSX:AX.PR.E - Post by User
Post by
Torontojayon Oct 29, 2024 6:44am
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Post# 36286272
Canada is imploding
Canada is imploding From all the recent trends that I'm seeing it's very clear that Canada is about to hit rock bottom in the months ahead. Tiff Macklem has recently told the media that now that inflation is back to target they need to stick the landing. I hate to burst his little bubble but the plane has crashed a long time ago. When a central bank drops rates by 50 bps it should always be considered bad news. This is precisely the stage where they begin to panic because they are no longer concerned about inflation but rather the economy.
Canada is double screwed because as variable rate mortgages are coming down, fixed rate mortgages are moving higher. The majority of homeowners renew in 2025 and 2026 with plenty of supply hitting the market keeping a lid on home prices. Rents have been stagnant for over a year now and the condo market in the gta is plummeting.
For those of you who are too young to remember, home
prices in Canada took about a decade to recover from the highs of the late 1980's/early 1990's.