Canadas housing bubble is hitting smaller and smaller communities
Jordan heath rawlings. This is the big story. Mike moffitt is an economist and he is the senior director at these smart prosperity institute in ottawa. Hey mike hello. Maybe you could start with the basics for us. How do housing prices in canada right now. Compare with similar countries in the world or compare with even our recent past what we're seeing a house. Price boom across Developed countries so in canada depending on the market prices are up anywhere from five to forty percents We're seeing similar gains in the united states in western europe and is caused by a couple of things I we have a group of individuals calls her white collar professionals who are staying at home They haven't been taking vacations commuting and they are saving a lot of money and they're taking that money and using it to buy all sorts of things so we're seeing huge price increases in the stock market in bitcoin. Things like vintage guitars and hockey cards. So they're putting their money into that and many of them are buying houses. They're buying second homes as investment properties. Which is a boosting the price of those and then we couple that with globally low interest rates which allow people to to finance. The purchase of homes You than they. They would have been able to a year ago. It's just fueling this. Massive boom where again in markets all across canada and in particularly smaller markets like ingersoll and tilson burger markets. Like that. you know. We're we're seeing price increases of of forty percent or more.