People get on ebay and overbid on shit all the time. Hell, I've done it out of spite a few times! Just ran shit up and left some other dumb ass holding the bag. Other times, I've seen something I wanted and put in such a high initial bid, I knew nobody else would pay it. Are you hysterical assholes gonna net cop all of fukin ebay too? I'm tempted to go buy a nigger hating Dr Seuss book for $300 right now!!!! I'm nigger rich this week anyway!
But the trouble is when the prices are run up like that, some schmoe or schmoeess will take out a huge bank loan way beyond their means or ability to repay it, Lokmeer. So....like any Housing Crash throughout history the story is always the same. All these overextended buyers can't repay the bank. And or course, the bank is in trouble. And if enough of these institutions fail, it sends a ripple effect through the economy.
It's obvious that governments everywhere are letting the situation get out of control.
This most certainly is happening in Canada too & the local newspapers are taking notice as well.
A lot of people are bidding at anything that moves.
Just buy it! Don't worry we can pay it off!
But of course, many can't
I'd say it's looking more like coming Japan style Housing Crash 2.0
Anyways, Houses aren't priced like eBay products.
An individual home is more like hundreds of thousands of dollars or oveer $1 million.
So how are some of these buyers gonna pay up when the bills come due?
I suppose many are hoping to sell to make a quick profit until somebody gets holding the bag just like previous housing crashes.
Look idiot, IF a bank were to loan money on that house, they arent gonna loan more than what its worth! STFU, you hand wringing clown! Have you ever applied for a fukin home loan or have you rented all your life? Shit, I was poor as fuck most of my life but I still knew how a fukin mortgage worked 30 years ago! josephine, you've always gotta be that dumb bitch that speaks up like you know something. YA DONT!
Well Lokmeer I won't speak for the USA then, but in Canada the prices are going haywire.
And I don't see how this is sustainable here.
Canada's gone through this bruising recession, unemployment remains high but prices keeping accelerating more than ever.
And the average buyer's income hasn't risen 30% in 1 year even tho housing prices have in the larger cities
I suppose what the real estate industry are hoping for here is that China will keep buying Canadian real estate.
In which case it'll keep going up in Canada, but they'll pay a huge social cost. there'l sure be alot of people who won't be able to afford a house anywhere in Canada. And that means young families with children - the ones who need it most.
They have to compete with these offshore bidders to buy overpriced homes pushing themselves massively into debt just so they can feed, clothe and house their children.
Personally, I think that is extremely cruel to push young families into debt like that.
In many respects, they don't reallly have a choice if they have a family to feed.
And the Canadian government isn't doing anything to help them.
Ad this runnup in prices will of course affect the rental market.
What I think it's creating is a low vacancy rate because fewer people don't wanna move as new rentals become increasingly in affordable
Imagine that - Canada which has a land mass larger than a big country like the the United States, has less than 40 milion people has no affordable housing anymore.
