Housing is a huge drain on Canada's economic activity: Former RBC CEO 

This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.

It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.

The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

I don't understand why he doesn't just plainly say Canadian real estate is a disaster. He obviously knows as well as any other thinking, literate person that this situation cannot and does not end well.

Like food, water, and health care, Home is a "Life's Basic Necessity" and it should NEVER become an "Investment Commodity". The coming Housing Crash in Canada will settle this harsh reality, once and for all.

How can immigration help the average joe? Can’t afford housing, can’t find a doctor and can’t afford to live?

If my rent was half of what I pay. I’ll be spending the money elsewhere driving the economy like consumer goods, renovations, cars, leisure and travel. Literally free land with expensive permits, high interest rates helping the banks earn the money.

Welcome to the Silent Depression.

People are about to default on their mortgages. ER wait times in Southern Ontario are hitting 15 hours, it’s going unreported. There’s no housing and no more hospital beds. Wake up. Everything is under strain. They love talking about the GDP but not the quality of life of their citizens.

For a former CEO of a Big 5 bank, he can afford to get a better microphone.

Housing will be ok???? Not here in BC. buddy. Get rid of devious foreign investors.

It's been a drain for 10+ years.

Fix your sound if you want to work from home in your slippers. That echo is terrible.

Why so desperately protecting extremely high housing prices with ENDLESS low zero rate and DETRUCTIVE QEs? You can do it, just tax principal residence's realized capital gains at 50% like all other assets (also give tax credits for selling at loss). The house owners still making a humble profit. The the taxes collected can be used to BUILD (in PP & JT's words) affordable housings, so the cashed out house owners can still be beneficial to buy affordable downgraded housings no need to move > 2000km away or another country. What's wrong with this?

Gordon Nixon nailed it that Canada doesn’t have an industrial policy based on its competitive advantages

"housing will be ok" says well housed banker

100K is the new 40K. Tax policy needs to change. Rich people need to pay more.

"Housing will be okay." Families of 4 living in 1 bedroom apartments; half of Canadians $200 away from bankruptcy. Sooo...okay for the speculators then and gamblers then? Got it, thanks

“Housing” is not an industry.

But do the liberals care?

So the government was giving 2000 USD for everyone in covid who were unemployed . So when I came to Canada I worked in Tim hortons of Amit Seth’s hospitality just because I rejected to having S** with his sister and wife they shifted me into another branch and said to work in another branch of Tim hortons but after all tests and massages they didn’t responded and trapped my job applications and did not communicate with me into my job applications my calls and texts were all cancelled by them and didn’t send my resignation reply . As they said in interview Seth’s has 75 Tim hortons so I WAS NOT ABLE TO GO IN EVERY 75 TIM HORTONS and ASK them IF THEY SEND ANY JOB TRANSFER BY MY NAME ? So now what long term unemployment because of Tim hortons of Canada and put blame on you 👏🏻👏🏻 Good job Seth’s hospitality , Tim hortons and Canada liberals 😂🙏🏽

I’d be too nervous to take out a mortgage if the interest rate might change over time. Bought a home in 2016 with a fixed 30-year at 3%. How do you budget if you don’t know if it might go up in a few years?

He is/was CEO of many top institutions yet keep saying many times " You know" . Very interesting!

The sound is really bad. It is hard to follow.

Mr. Banker, stop extending and pretending with mortgages people should never have taken on. Let them default. Let the bubble pop. You created this problem! And you continue to deny it and pretend everything is going to be okay. The shallowness is unbelievable!

In what world is a housing crisis indicative of a "strong economy". These older generations have become rich off owning all the land and purposely constraining housing supply built on it. From their view higher house prices mean a stronger economy ... for them, which is all that matters. Meanwhile the younger generations are spending over 50% of their income on housing with no hope in sight. At what point will the scales tip and the talking heads admit the housing crisis is killing our economy and future? I'd argue the recession Canada is in is due to it, but they will never admit that, and they will continue to prop up policies that keep their house prices up. I'm convinced the only way the younger generation will ever be okay is if they revolt. I see no world where the land owners willingly increase supply in a meaningful way.

Productivity is low because the Federal Governmemt is the biggest employer. Canada has huge, almost never ending rules and regulations. Take housing- there is not nearly enough permits issued to supply the over 1 million immigrants and international students. It takes far too long to get through the permiting process and most building timber from our dwindling forests goes to the USA, China and Japan. How can he say housing is ok? When the prices have doubled in the last few years, we have the lowest housing supply in the G9 and the highest immigration in the G9? It is a Federal Government created disaster to benefit the mega rich investor class and the Government through increased taxes and interest. Add to that the inflation created by printing a record 3-5 trillion per year during covid, but still going on. He has to be careful not to speak the truth and offend his elite friends.

Canada needs to upgrade home buying fundamentals. 1. Don’t appraise property by just seeing latest 2-3 comparable, look at the historic market and interest rate factor to current market derive value. 2. Stop giving two options Variable and fixed mortgages. 3. Make bidding process open and effective, so that people don’t over pay by just verbal agreements between agents. 4. Audit all Lenders under-writers and find out how much money they and their family accumulated in last 10 yrs. For a fact in a bank manager gives up their 6 figure income to get a role of Underwriter. Because it’s a world known fact that they makes lot of money under table.

Yup. When rent and mortgage payments become to Hight people lose disposable income. High real estate prices screw everytbing ip.

In Toronto, you can work a job and still be poor, or in debt. If you can even find a job...

Housing is why the Canadian economy is stuck. I guess the Canadians prefer real estate over broader growth such as GDP per capita growth. The U.S. welcomes bad Canadian policies.

I think the answer for Canada is "things are going to get bumpy. " Housing isn't in line with the population and income. Just wait as AI, automation, and global slow downs continue to see what really happens in Canada. It will be interesting, yes? No? Maybe?

Funny how we act stupid like we didn’t see this coming. We deserve it for our real estate cult

Normal isn't coming back, Jesus is!

People buy too much real estate with too much leverage. Even when the interest rates were lower it was important to not buy too much and to put a big deposit and to repay quicker than the minimum repayment amount. If you do it that way you are fine. I saw too many people borrowing far too much to buy too big a house instead of buying first a condo or a rural property to build up equity before to move on to something slightly bigger. It's not about appetite, it's all about digestion...

They want to fight inflation but they increase the one thing canadian spend and it is housing. Save 20$ on grocery but lose 500$ on housing. Thank you bank of Canada haha

I'm favoured, $230K every 4weeks! I can now afford to give back to the locals in my community and also support Charity Organizations. God Bless America🇺🇸🇺🇸🇺🇸

As a BEC share holder Gord want's excusive compensation but Canadian Kid's that want a job get no hours. Quit hiring off shore workers Gord I get to vote on your job.

In canada real estate, government and immigration consulting are the growth industries and they are all related.

The guest Doesn’t make much sense. Need immigration and housing is fine, which is nonsense . The hi immigration will continue to force housing higher and rents higher. Canada's productivity has been awful for decades, as has r&d by companies.

canada does not have economic activity. do not want productivity quality of life etc.... there is a large block that just wants to resign & have communism which is stagnation. just enough to control govt - & govt produces very very little...

Interview from the can? Symbolic of the Canadian economy I think.

Low supply...about half the inventory of pre-pandemic supply of single family homes on the market. Low supply = high prices of housing

Get a real pair buddy. Canada is in recession. Wait until auto makers collapse

Economic growth driven by a strong housing market was a good thing? - For some it was like winning the lottery, for others it has been catastrophic. It's not just the debt-servicing that is producing a drag on Canada's economy, it is the fact that we've put so much emphasis on an inert asset class and let innovation and productivity atrophy.

The state must not be a joint-stock company. A person must not be a raw material. Housing and healthcare must not be an industry. And above all, inheritance rights must be abolished so that everyone WITHOUT EXCEPTION can inherit anything, but only up to a SINGLE LIMITED AMOUNT. All evil in the world is based on hereditary accumulation. So we finally remove it!

Useless segment.

The guy ran a government sanctioned bank. It’s a scam economy. Let’s hope the fan spreads the shite through major cities the most. Actually I expect huge pain and suffering in major urban Canadian areas. Vultures be ready. The deals are going to be epic

My take is homes have interest rates that use to be the norms but it is the high price that is a buss kill for me to moving up. No value in it, way overpriced.

Speaking in front of that echo chamber. that square amphitheatre, that 'room cavern' makes your audio boom loudly ! Very 'drumming' sounding ! s that the reason?

The only store that exists for me is Amazon.

Can you believe he was a CEO of a big Cana Bank?

Mr. Nixon needs a better studio to cut down echo.

Amongst the G7 nations, Canada is probably considered to be the morons when it comes to financial and economic savvy....For example, how is carbon taxing your primary industries make any sense.....sigh

10 years no refugee or job visa More jobs. In agriculture, industrial sectors More affordable housing and use huge lands. More money , in education University education of local students must be free and grants Use local graduate for grow economy

The sound quality the Banker thinks is acceptable is really symbolic of the mind set that got us here.

The former RBC CEO looks like he is in a prison cell.

I dont have any disposable income... because I pay market rent

Wow watching that guy talk in circles really cured my insomnia, thanks !

You know you know you know

Just accept that most are Pon Zitizens who have a little stake in the game so protect the Pon Zinvestors who are the ones really benefiting from this mess...

faq this turdeau thing...

What if I told you recessions perfectly healthy

You should ensure your guests have proper equipment for sound.

A mic? How bout a mic?

👉 Deflation 👈 you'll never get accurate numbers

Thanks. Is the sky going to be blue tomorrow?

Interesting. Thanks Gord Nixon. And Gord needs a better microphone.

Why do I keep listening to these "experts" spouting word salad, trying to tell me how my reality? Sick and tired on the Corporate non-speak from talking heads.

Climatard 😂

Chinada..keep pumping up that housing bubble 😑

O rly?🦉

Canada will get what it long time deserved economic recession, real estate investor defaults, and real estate crash.

Of course it is the average person cannot afford an 800 to a million-dollar home people have people's income hasn't gone up that much just cuz you lend them the money for the host doesn't mean they can afford it it's if you're not making two to $4,000 a week you shouldn't be buying an 800 to 1 million dollar home you dont have a cushion