“Then one day the government woke up and realized that what was once the Veterans’ Housing Shoppe was now backing the mortgages of anyone, for nearly anything. Five per cent down? No problem. Forty-year mortgages, investment properties and highly leveraged $2-million mansions by the water? Yes, yes and yes. Bring ‘em on. The lax standards, combined with low interest rates, opened the way for easy money to flow. Average home prices in Canada have doubled over the past decade. A federal institution whose mission was to make houses more affordable has managed to do the opposite–make them unaffordable.”
- from ‘CMHC outlived its mandate – now it’s just meddling’, Derek DeCloet, G&M, 25 Oct 2012
Opinions previously held only by lunatic bears-on-blogs are being expressed mainstream.
All part of the swell of sentiment change washing over the RE markets nationwide.