The price of the average home in Canada increased by a record $147,000 compared to last year. Is housing going up forever? How are first-time home buyers supposed to enter such a hot market? On today’s podcast, Ben Rabidoux, founder of North Cove Advisors and Edge Realty Analytics, returns with his insights on the Canadian housing market and predictions for 2022. Ben also gives his thoughts on inflation, the impact on consumers if interest rates go up, and whether consumer debt levels will rise substantially in the coming months. Tune in for a great discussion!

Links Mentioned in the Show:

Podcast 94 What Happens to Debt When House Prices Fall: https://youtu.be/ETkZEc5FLYk

Podcast 266 Real Estate, Personal Debt, and Recession Indicators: https://youtu.be/0TMRQ0f0_WQ

Podcast 292 Debt, Frozen Real Estate, Cancelled HELOCs, and a Guaranteed Recession: https://youtu.be/fek4xUoIkrc

Podcast 333 Mortgages, Consumer Debt and Delinquencies – What’s Real & What’s Fantasy: https://youtu.be/b-JYXZZ7eDQ

Edge Realty Analytics: https://edgeanalytics.ca/

Ben Rabidoux on Twitter: https://twitter.com/BenRabidoux

Employment chart, Statistics Canada: a001-eng.htm"> https://www150.statcan.gc.ca/n1/daily-quotidien/211105/cg-a001-eng.htm

Labour force characteristics chart, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701

Canadian Real Estate Association Chart: https://www.crea.ca/housing-market-stats/mls-home-price-index/hpi-tool/

Current and capital accounts chart, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Hoyes Michalos Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/

Time Stamps:

2:21 – The most important trend in the housing market today: inventory levels are plunging

5:43 – At what point will house prices start to fall?

6:54 – How did real estate prices get so high?

8:49 – If high prices for single family homes are partially a supply issue, why are we not building more single family houses?

12:09 – Why immigration numbers don't tell the full story about population growth

14:51 – Will inflation and interest rates increase in 2022?                         

19:25 – Ben disagrees with Doug's deflationary prognostications for 2022

21:37 – Has employment bounced back to pre-pandemic levels?                      

26:08 – Ben's predictions for 2022

28:52 – Are mortgage borrowers going variable or fixed on their mortgages now?

32:14 – Will debt levels increase in 2022?