Wouldn't surprise me if we see a slowing down in new inventory. Older listings that were unsuccessful will unlist, and will relist again in the spring. The average seller thinks that lower rates will spark fomo again, but these expectations will be met by stubbornly high fixed rates, it will also be affected by resurging inflation. In the spring, you will have tons of new listings again, higher expectations and higher unemployment. You will have higher sales, lower prices. Think of the psychological effects it will have on sentiment if inflation starts rising again in an already weakening economy. That will change sellers expectations, it will make asking prices more reasonable as people get used to higher rates. Too many sellers are pricing their properties like rates will be low for the foreseeable future, they won't. Expectations will have to adjust, simple. Also remember, average people are some of the last to figure it out, so it's why things are so slow, the sheep are scared to make a move without the herd. Once the herd gets moving in the spring, you will see a sharp increase in transactions.
Lots mortgage renewals are coming due and MANY Canadians will not be able to afford their renewal. Just sold my house in south Barrie yesterday, under asking and I'm okay with it. Uncharted territory ahead, I'll park my funds and see the market swing in 6 months with hopefully 2016 prices come back around.
15:54 "K, pull up the property". Good idea. One can see why. And the full asking price history is quite something - may have been asking 810k in Feb 2024.
Building permit value is down 83% here in Kelowna as per news this week. Unfortunately I think we are going to start seeing mass layoffs in construction very soon. Fixed rates are stuck around 4.5% and could go up because of what’s happening in the States. Canada’s worst nightmare of push inflation is on track every time they drop rates.
So when all these people that had 2-3% mortgages have to renew at 4-5% mortgages what happens? The bond market is not playing game with what the powers that be want. This is a very very unusual set of circumstances. The cheap money is done. There will be a vast sucking sound of money from mortgage holders to bond holders (me). Hopefully those houses give you comfort because I love the transfer of cash from them to me.
We need a massive recession to get an appropriate capitulation. I live in a small town and we're priced 20% above peak, we were trending down, but since the first rate cut prices went back up. Nothing sells and I see nothing but recycled listings, but that's the price. Everyone's got the "I don't need to sell", smug attitude.
@@jeffotoole4509 I've had a beef with the market since 2010, all of a sudden having a decent place that was somewhat affordable price tag went right out the window and everyone went super elitism on housing. "Oh, you can't afford this place? Too bad fvck you I need you to fund my lifestyle" A decade later and Canada is a lost nation from that attitude.
@@donm2067 yep it’s a big problem that’s for sure. It has imbedded itself in everyone’s brains. People used to start businesses and get better jobs. Now we trade rental properties and put in 70k kitchens. It’s pretty disgusting how it has all gone. This is showing real weakness though. The government is throwing everything at it but it’s still not working. The problem is that people have been so conditioned to do what I had said so people can’t see any other way. I am very content watching all this go down from here.
waterfronts are listed 60% over evaluations. lots of room to move with those whales and their money pits. every million is $900/month in taxes ? what is the monthly mortgage on 1000000 dollar property @4.76% ? $6800 insurance has to be >$2500/year hydro has to be $500/month
Not low enough yet. When will people stop with the delusions. Market correction is a market correction. These properties need to drop another 30% at least to start moving.
Wouldn't surprise me if we see a slowing down in new inventory. Older listings that were unsuccessful will unlist, and will relist again in the spring. The average seller thinks that lower rates will spark fomo again, but these expectations will be met by stubbornly high fixed rates, it will also be affected by resurging inflation. In the spring, you will have tons of new listings again, higher expectations and higher unemployment. You will have higher sales, lower prices.
Think of the psychological effects it will have on sentiment if inflation starts rising again in an already weakening economy. That will change sellers expectations, it will make asking prices more reasonable as people get used to higher rates. Too many sellers are pricing their properties like rates will be low for the foreseeable future, they won't. Expectations will have to adjust, simple. Also remember, average people are some of the last to figure it out, so it's why things are so slow, the sheep are scared to make a move without the herd. Once the herd gets moving in the spring, you will see a sharp increase in transactions.
Cute dog
Lots mortgage renewals are coming due and MANY Canadians will not be able to afford their renewal. Just sold my house in south Barrie yesterday, under asking and I'm okay with it. Uncharted territory ahead, I'll park my funds and see the market swing in 6 months with hopefully 2016 prices come back around.
Someone just put up a ad for sale in my building 20% over market value with no agent. Smh
Interesting to see how market conditions are shifting!
15:54 "K, pull up the property". Good idea. One can see why. And the full asking price history is quite something - may have been asking 810k in Feb 2024.
Here in Quebec, MAJORITY of sales was a FAST one and are almost ALWAYS in multiple OFFERS situation ; they still sold WAY OVER the price... and FAST !
Sales are up price is down. Sales are down price is stagnant or up. Simple. In a down market buyers are looking for deals.
Building permit value is down 83% here in Kelowna as per news this week. Unfortunately I think we are going to start seeing mass layoffs in construction very soon. Fixed rates are stuck around 4.5% and could go up because of what’s happening in the States. Canada’s worst nightmare of push inflation is on track every time they drop rates.
Houses in my area have been on market for months now.
Come on, Mark.
So when all these people that had 2-3% mortgages have to renew at 4-5% mortgages what happens? The bond market is not playing game with what the powers that be want. This is a very very unusual set of circumstances.
The cheap money is done. There will be a vast sucking sound of money from mortgage holders to bond holders (me). Hopefully those houses give you comfort because I love the transfer of cash from them to me.
I’m warming up to you theory’s unfortunately
We need a massive recession to get an appropriate capitulation. I live in a small town and we're priced 20% above peak, we were trending down, but since the first rate cut prices went back up.
Nothing sells and I see nothing but recycled listings, but that's the price. Everyone's got the "I don't need to sell", smug attitude.
@ I love the I don’t have to sell smug. That’s the biggest problem I have with all this.
@@jeffotoole4509 I've had a beef with the market since 2010, all of a sudden having a decent place that was somewhat affordable price tag went right out the window and everyone went super elitism on housing.
"Oh, you can't afford this place? Too bad fvck you I need you to fund my lifestyle"
A decade later and Canada is a lost nation from that attitude.
@@donm2067 yep it’s a big problem that’s for sure. It has imbedded itself in everyone’s brains. People used to start businesses and get better jobs. Now we trade rental properties and put in 70k kitchens. It’s pretty disgusting how it has all gone. This is showing real weakness though. The government is throwing everything at it but it’s still not working. The problem is that people have been so conditioned to do what I had said so people can’t see any other way.
I am very content watching all this go down from here.
you mean way under inflated price? so they actually came to their normal value?
Average prices always skews the report. Median prices are probably a better scale to use.
only the homes that are not priced for the market.
waterfronts are listed 60% over evaluations. lots of room to move with those whales and their money pits. every million is $900/month in taxes
? what is the monthly mortgage on 1000000 dollar property @4.76% ? $6800
insurance has to be >$2500/year
hydro has to be $500/month
Property tax is $1000 per month
Not low enough yet. When will people stop with the delusions. Market correction is a market correction. These properties need to drop another 30% at least to start moving.