It’s not overvalued as supply far outstrips demand. Mostly because of BCs policies and Vancouver’s limited ability to add more stock because of the river ocean and mountains
They need to build new cities in Canada, rather than tearing down and rebuilding existing cities. It's a serious waste of resource. If they didn't tear down so much and built elsewhere we would have 2x everything.
I think you mean demand far outstrips supply. Very little for sale right now in Vancouver we are now back into a strong sellers market on Townhomes and condos but i know some are not going to want to hear this. Detached has now moved up to a high balanced market and i would expect it to move into sellers territory later this Fall.
BOC mandate is a lot more than that. How about keeping Canada out of a deep recession like this new TD report points out. Buying a home will be the least of your problems when you don't have a job.
Why do the bears think BOC policy is to control house prices? Never has been never will be. Like they can’t lower because house prices haven’t dropped 30% yet! …..so I can get out of my parents basement 😂😂😂
I have to agree with your comment 100% Only in Canada do people cheer on high interest rates. As sure as we are going to be getting rain this Spring in Vancouver rates are going to be dropping later this year and even more in the first half of 2025 . Don't shoot the messenger! BOC reduced rates too much during Covid and have now over increased coming out of Covid with 11 hikes. Inflation for the most part is tamed... the higher rates are to blame for it not falling below the 2% target.
Market seeems pretty strong, hard to find land in Burnaby or even decent home. Seen a lot by the hospital which is a great area, but this particular street isn't the best. 20 offers and way over ask. Condos, plenty of options and prices are stable and maybe down a bit.
I've not noticed recently entry level homes are slightly but surely going up. If you can afford to buy primary residence I would buy it now and lock in short term fixed rate. Once interest rates start to come down even by 1% home prices will juice up. Supply will never catch up to demand in this region due to unprecedented population growth & growing wealthy investors competing for shrinking pie.
There’s got to be a decent sized group of developers on the verge of insolvency. Did you happen to read the recent article in the globe and mail about GDP written by Andrew Coyne ? Very sad if this is where our country is headed …
It's not my prediction.. it's the consensus of all the top economists and banking reports including this new one from TD's top economist. Rates are coming down for sure. Most are saying this Summer or Fall.. i think it will be in the Fall with several cuts then early 2025 they will start to really drop.
Where are you getting this news?? Tic ToK? or is this just your own expert opinion? pretty much every major financial institution is calling for rates to drop later this year and pick up the pace in early 2025. They're not going back down to 2020 levels 1.2% variable but i could see them fall to 3.5% in the next 18-24 months. This is what most of Canada's top economists like David Rosenberg are calling for. Just helping you guys read the room here but so many of you have made up your own minds and i feel are going to be proven wrong over the next 12-18 months
We need a recession to defeat expectations, unions are expecting 6+ % wage increase...people need to hurt before interest rates need to go down. We need to look at USA first before canada lower the rate
Grocery prices are still elevated despite the claimed 2.1% inflation rate. I'm sure some retailers are using the inflation narrative to gouge as long as possible.
Prices of food, etc. are never going lower (at least not overall). That’s not what the BoC needs to see to lower rates. What BoC/CBs need to see to reduce rates is that prices aren’t increasing beyond ~2%/yr.
A lower inflation rate doesn't mean prices for groceries will come down. Inflation rate is the value at which the price will continue to climb year over year. What you see today at the grocery store is here to stay in terms of pricing.
Do you even understand what inflation is? LOL. When inflation goes down, current prices don't go down. They just go up slower. LOL. Please educate yourself.
@@stevenvanderheide6472 And if the CAD gets hammered we will see more inflation because of the lack of purchasing power. In an interest rate pickle I’d say.
Hi Owen ! I love your vlog, but I think you are wrong on interest rates. We have to get accustumed to the new higher inflation environment in Canada. There are many countries where inflation is high and interest rates are high as well. Take Turkey for example : the interest rate there is 45% and the inflation rate is 65%. That probably won't be that high in Canada. But the 2-3% interest rate in Canada is over and probably will never come back. Better plan for a more "normal" 6-8% interest rate average. I might be wrong. But that's my best guess based on what I see in the economy and financial system here and around the world.
I'm just confirming what all of Canada's and US top economists, banks, and analysts are predicting.. Rates are coming down guys! Some are saying late Spring i don't think it will be until Fall but who knows when the exact month of the 1st cut??? As the TD report points out as well as the other 10 reports i have seen the past month. If rates don't start to come down later this year Canada will be headed for a deep deep recession. Buying a house will be the least of peoples problems if you don't have a job!
@@OwenBigland So is Turkey.. in a deep deep recession. But as long as real estate is going up 65% per year, paying 45% interest rate on your loan is still a good deal. Net gain is still +20% per year ! Even for those who don’t have a job, it’s better to keep your real estate and not sell. Personally, I would be very scared to sell right now and have to pay more a few months later for the same house. I’m very lucky I don’t have to move at the moment. Anyway, thanks for all your great content ! 🙏
Yes you do sound like a typical real.estate investor Owen 😂. Historically these rates are still low and the economy and real estate need to make the adjustment instead of going down to crazy low rates that are not sustainable. Get a side hustle right? 😂
@@OwenBigland You are correct they are low but my concern is if the trend continues for an extended period of time. It doesn't seem like the BoC wants to cut rates even though that seems to be a factor in why they haven't hit their target inflation rate yet
Oh.. there coming down probably starting this Summer and picking up the pace in Fall and early 2025. BOC & Fed have already been indicating they are going to be cutting. Where on earth are some of you getting these rates are staying high or going up predictions? Why do you think the stock markets are at all time highs? Earnings? It's because Wall st can read the room and is anticipating rates to start coming down later this year. Stock markets are forward thinking.
No problem... you'll be fine by end of 2025. Won't be at 1.3% we're never going to see those rates ever again but could see a sub 4% variable for sure. Every major economist and financial institution in Canada is calling for rates to be much lower by the end of 2025. I think we are going to get 2 small reductions later this Fall and for that pace to pick up a fair bit in the early half of 2025. I'm seeing new reports coming out every day now calling and predicting major cuts to come. Today it's Desjardins calling for a 3.75% on overnight rate by end of 2024 and more cuts in early 2025. It amazes me how many commenters here who don't see this coming??? I'm perplexed and who is telling them rates are not coming down or even going up? There in some kind of doom echo chamber and not following the true sources for this kind of reliable forecasting. It's not a surprise that the condo and townhouse market have now moved back into a sellers market. Buyers are correctly forecasting these rate hikes.
I’ve talked to a few people lately that are over leveraged and they are sweating. We need a deleveraging event and I’m all for it.
I mean you can just easily say I need to buy a principal residence….😅
BOCs mandate is to control inflation, not prop up overvalued real-estate
It’s not overvalued as supply far outstrips demand. Mostly because of BCs policies and Vancouver’s limited ability to add more stock because of the river ocean and mountains
They need to build new cities in Canada, rather than tearing down and rebuilding existing cities.
It's a serious waste of resource.
If they didn't tear down so much and built elsewhere we would have 2x everything.
I think you mean demand far outstrips supply. Very little for sale right now in Vancouver we are now back into a strong sellers market on Townhomes and condos but i know some are not going to want to hear this. Detached has now moved up to a high balanced market and i would expect it to move into sellers territory later this Fall.
BOC mandate is a lot more than that. How about keeping Canada out of a deep recession like this new TD report points out. Buying a home will be the least of your problems when you don't have a job.
Shelter isn't crashing yet, they need to raise
Why do the bears think BOC policy is to control house prices? Never has been never will be. Like they can’t lower because house prices haven’t dropped 30% yet! …..so I can get out of my parents basement 😂😂😂
I have to agree with your comment 100% Only in Canada do people cheer on high interest rates. As sure as we are going to be getting rain this Spring in Vancouver rates are going to be dropping later this year and even more in the first half of 2025 . Don't shoot the messenger! BOC reduced rates too much during Covid and have now over increased coming out of Covid with 11 hikes. Inflation for the most part is tamed... the higher rates are to blame for it not falling below the 2% target.
Why would you not consider housing and food as part of inflation? It has an impact on your monthly expenses
Food has gone up due to inflation I agree on the house but food no
Market seeems pretty strong, hard to find land in Burnaby or even decent home. Seen a lot by the hospital which is a great area, but this particular street isn't the best. 20 offers and way over ask. Condos, plenty of options and prices are stable and maybe down a bit.
Thanks for the great discussion!
I've not noticed recently entry level homes are slightly but surely going up. If you can afford to buy primary residence I would buy it now and lock in short term fixed rate. Once interest rates start to come down even by 1% home prices will juice up. Supply will never catch up to demand in this region due to unprecedented population growth & growing wealthy investors competing for shrinking pie.
There’s got to be a decent sized group of developers on the verge of insolvency. Did you happen to read the recent article in the globe and mail about GDP written by Andrew Coyne ? Very sad if this is where our country is headed …
Crazy 🤪. House prices will go thru the roof if they cut so deep. Ridiculous. I doubt many cuts are coming...my crystal 🔮 ball.
I have one fixed at 2% for 5 years. Kinda get lucky there. One fixed at 2.3 and another one at 7.02 %:(
Can't reduce rates in a vacuum Fed won't be cutting any time soon!
nice prediction you got there
It's not my prediction.. it's the consensus of all the top economists and banking reports including this new one from TD's top economist. Rates are coming down for sure. Most are saying this Summer or Fall.. i think it will be in the Fall with several cuts then early 2025 they will start to really drop.
it really comes down to the data they get over the next few quarters. Bad data they will stay@@OwenBigland
If you include government tax increases our inflation is much higher.
lol ZERO rate cuts in 2024
Where are you getting this news?? Tic ToK? or is this just your own expert opinion? pretty much every major financial institution is calling for rates to drop later this year and pick up the pace in early 2025. They're not going back down to 2020 levels 1.2% variable but i could see them fall to 3.5% in the next 18-24 months. This is what most of Canada's top economists like David Rosenberg are calling for.
Just helping you guys read the room here but so many of you have made up your own minds and i feel are going to be proven wrong over the next 12-18 months
@@OwenBigland Werent they calling for rate cuts march and april a few months ago?
We need a recession to defeat expectations, unions are expecting 6+ % wage increase...people need to hurt before interest rates need to go down. We need to look at USA first before canada lower the rate
Grocery prices are still elevated despite the claimed 2.1% inflation rate.
I'm sure some retailers are using the inflation narrative to gouge as long as possible.
Prices of food, etc. are never going lower (at least not overall). That’s not what the BoC needs to see to lower rates. What BoC/CBs need to see to reduce rates is that prices aren’t increasing beyond ~2%/yr.
A lower inflation rate doesn't mean prices for groceries will come down. Inflation rate is the value at which the price will continue to climb year over year. What you see today at the grocery store is here to stay in terms of pricing.
Do you even understand what inflation is? LOL. When inflation goes down, current prices don't go down. They just go up slower. LOL. Please educate yourself.
Boc has to follow feds. That's probably why they haven't dropped rates yet.
Exactly. If the BOC cut before the fed the CAD would get hammered.
@@stevenvanderheide6472 And if the CAD gets hammered we will see more inflation because of the lack of purchasing power. In an interest rate pickle I’d say.
Hi Owen ! I love your vlog, but I think you are wrong on interest rates. We have to get accustumed to the new higher inflation environment in Canada.
There are many countries where inflation is high and interest rates are high as well. Take Turkey for example : the interest rate there is 45% and the inflation rate is 65%.
That probably won't be that high in Canada. But the 2-3% interest rate in Canada is over and probably will never come back. Better plan for a more "normal" 6-8% interest rate average.
I might be wrong. But that's my best guess based on what I see in the economy and financial system here and around the world.
I'm just confirming what all of Canada's and US top economists, banks, and analysts are predicting.. Rates are coming down guys! Some are saying late Spring i don't think it will be until Fall but who knows when the exact month of the 1st cut??? As the TD report points out as well as the other 10 reports i have seen the past month. If rates don't start to come down later this year Canada will be headed for a deep deep recession.
Buying a house will be the least of peoples problems if you don't have a job!
@@OwenBigland So is Turkey.. in a deep deep recession. But as long as real estate is going up 65% per year, paying 45% interest rate on your loan is still a good deal. Net gain is still +20% per year !
Even for those who don’t have a job, it’s better to keep your real estate and not sell.
Personally, I would be very scared to sell right now and have to pay more a few months later for the same house. I’m very lucky I don’t have to move at the moment.
Anyway, thanks for all your great content ! 🙏
Yes you do sound like a typical real.estate investor Owen 😂. Historically these rates are still low and the economy and real estate need to make the adjustment instead of going down to crazy low rates that are not sustainable. Get a side hustle right? 😂
everyone loves the drunken party but noone wants to face the hangover
They are not getting lower . We’re getting screwed
Mortgage delinquency rates continue to increase as well, not a good sign
Come on.. give us the full story, might have gone up but Delinquencies are at record lows in BC and Ontario almost non existent .04% in BC.
@@OwenBigland
You are correct they are low but my concern is if the trend continues for an extended period of time. It doesn't seem like the BoC wants to cut rates even though that seems to be a factor in why they haven't hit their target inflation rate yet
Eat Zee Bugggs
Central Big Five schedule 1 banks Rule Canada and do whatever they want
Rate are no coming down anytime soon.
Oh wow, you can see the future.
That’s for the update my crystal ball is still in the shop
Doomers all seem to have (faulty) crystal balls
Oh.. there coming down probably starting this Summer and picking up the pace in Fall and early 2025. BOC & Fed have already been indicating they are going to be cutting. Where on earth are some of you getting these rates are staying high or going up predictions? Why do you think the stock markets are at all time highs? Earnings? It's because Wall st can read the room and is anticipating rates to start coming down later this year. Stock markets are forward thinking.
I need them to fall before December 2025
No problem... you'll be fine by end of 2025. Won't be at 1.3% we're never going to see those rates ever again but could see a sub 4% variable for sure. Every major economist and financial institution in Canada is calling for rates to be much lower by the end of 2025. I think we are going to get 2 small reductions later this Fall and for that pace to pick up a fair bit in the early half of 2025. I'm seeing new reports coming out every day now calling and predicting major cuts to come. Today it's Desjardins calling for a 3.75% on overnight rate by end of 2024 and more cuts in early 2025.
It amazes me how many commenters here who don't see this coming??? I'm perplexed and who is telling them rates are not coming down or even going up? There in some kind of doom echo chamber and not following the true sources for this kind of reliable forecasting.
It's not a surprise that the condo and townhouse market have now moved back into a sellers market. Buyers are correctly forecasting these rate hikes.
Rate cuts