[lbo-talk] "Fannie Mae and Freddie Mac are to blame!"

[ken hanly]

 There is at most a percentage point or two between rates in U.S. and Canada. However up until 2005 the average house was much cheaper in Canada. This has now changed drastically This year the cost of the average Canadian home is 360,000 while the U.S. is about 180,000. Our home ownership rate will probably go down. Many think that there is a bubble ready to burst soon in the Canadian market. The fact that Canadian home ownership is as high or higher than the U.S.surely does not show that the U.S. policies did not increase home ownership from what it might have been without those policies. Surely those policies helped more people qualify for mortgages than would have been the case had they been in Canada. The lower house prices in Canada could very well account for the minor difference in home ownership.

http://en.wikipedia.org/wiki/Homeownership_in_the_United_States

The average cost of a Canadian home is $360,000 while in the U.S. the average price has fallen to $180,000.

http://beta.images.theglobeandmail.com/archive/01324/houseprices_1324699a.jpg
 

________________________________
From: Jordan Hayes <jmhayes at j-o-r-d-a-n.com>
To: lbo-talk at lbo-talk.org
Sent: Wednesday, October 19, 2011 7:38:59 PM
Subject: Re: [lbo-talk] "Fannie Mae and Freddie Mac are to blame!"

Nathan S. writes:


> My own preference would be that renting be as respectable
> as buying ...

I'm not sure I've seen the disrespect that you have, but: sounds good to me.

---

It's probably worth pointing out that the level of home ownership in the US hasn't changed all that much since the 60s, and most of the "recent" change happened starting in the mid 90s; this was mostly as a result of FICO taking over as the main metric for mortgage qualification rather than some old white man at the bank.  Even the tippy-top of the blowoff (since reversed) of 2005-2007 was only a percentage point or two.  This "drive to home ownership" didn't have as much of an impact as what conservatives will tell you about Barney Frank.

(note to ken hanly: Canada's home ownership level is higher than the US's; somehow despite the lack of mortgage interest deductability (unless you're rich!) y'all seem to buy houses.  And Spain's rate is way above almost everyone)

http://en.wikipedia.org/wiki/File:US_Homeownership_Overall_2009.png

/jordan 
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