I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’ is a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
@@Pri10479or because 65% of my mortgage payment comes of the principle outstanding, making the real cost of housing less than rent and eventually will be fully paid off.
Agreed but builders, developers, Govt , banks, realtors think if they gang up and stick with higher prices then people will have no choice since everybody needs a roof.
The home value you get for your dollar is awful - it's no longer worth it. The combination of high taxes and the government encouraging massive debt to prop up this disaster has created an environment where owning a home and having a family is no longer viable. I want to own a decent home, have a family, take a few vacations, and be able to retire without a massive amount of debt. I'm a 5th generation Canadian and recently left this country for a place that can actually offer me the life I want.
We also left and moved all out. Canada is in a bad shape. Sadly worst place to invest now or get into real estate. They wanna take from the hard working people to feed the useless
Everything needs to drop like a sack of potatoes. Government and society shouldn't reward and correct those with gross negligence and fraud of their finances.
I think rates will go down, prices will not go up significantly, and anybody who's waiting for prices to go up will panic realizing that prices aren't going up, and all that inventory that you said is waiting for lower interest rates is going to be on the market. It doesn't matter how cheap things are when nobody has any money left to spend on it
@@BrandonSchleifer people have a lot of money to spend right now. It’s about the average Canadian, not the poorest. The average Canadian has a lot of money to spend on a house right now. Housing prices will never collapse in Canada. This is a mild correction.
"It doesn't matter how cheap things are when nobody has any money left to spend on it" Therein lies the key. The secret to dealing with the coming disaster is to see it coming. For those who did, there have been choices that were made that will position them well to grab the opportunities that are coming in the future. They started several years ago when money was cheap. We all have heard of the Great Depression. What many of us have not heard is how those who saw it coming and planned in order to be ready when the nation began to recover. What many of us don't realise is that a lot of millionaires were created during the depression. They could do it again if they are smart.
there are always people with money willing to buy at some price.... during the 2008 GFC when USA prices went down 50%, guess who bought all the houses.... that would be hedge funds and blackrock. When rents are the same and prices down, that means cap rates go up which means more investors, not less..... investors that will buy up everything and sell it back to you for higher later on.
@@Joseph-wg5qb i don't know what planet you live on, but here on earth, the majority of people have no disposible income much less buying a property at the current levels.
Why do you keep buying it then? If you can't afford it, don't fool yourself. Don't do it. If you pay that much for food, you are the cause and source of the problem.
Because there's too many damn people, we go out maybe once every couple months as a family of 3 to spend time together or perhaps we are out and can't have time to cook. So even tho it's rare we go out restaurants don't care keep jacking prices
Rapidly falling rates signal a weak economy. The "have's" don't want to become the "have nots", and will sit out on the sidelines. We will probably see a swell in listings as people try to unload their homes. This in turn, will keep the supply/balance in check. With the next CPI probably pointing towards 1%, many will begin to perceive deflation on the horizon. They will simply chose to wait for prices to fall further. We could then enter a dangerous point in the economy. Watch the bond market & stock markets for the early signals.
Yes- 100% agree. The bond market looks bleak for Canada. As a first time home buyer I am thinking I will have to wait for another 3-4 years as I think we will have a slow bleed not drastic. I don't believe it will be smart to buy for another 2 years minimum.
@@rachelk8368 When it comes to timing the market...buy when you have the downpayment and can afford the mortgage. Regardless of what is happening. We bought our first house in 1981 for $43k with 10% down. They were selling for $12k 20-years earlier. We had a 17% interest rate. People said we were nuts and were just waiting for failure to come. That same house today would be worth $650k. The point is, the housing market is just like the stock market, except it has a much longer cycle time. Should it drop, just hang tight until it recovers.
These current prices on homes in GTA and GVRD at least are based on BOC rate being 0.25% for two years. These cuts will do nothing to stimulate those two markets
LIFE IN CANADA: Average person makes $5,000 per month, (so a couple makes $10,000 per month) yet you have to pay: Mortgage: $8,740 Property Taxes: $892 Total: $9,632 per month. So you are now left with $368 for everything else in life, including food and clothing.
I have 10 years IT experience, and I make only 5000 after taxes! I have two kids, and we are barely making our ends meet. My wife is trying for a job from a year (made over 1000 applications!). I feel kind of strangulated. Leaving this country.
what the did u pay for that house and how big is it? thats a huge mortgage and property tax bill. well beyond that income, which after tax is quite a bit.
Ah….condos are still too expensive, if you subtract the mortgage costs from the taxes,utilities, and the maintenance fee’s you’re being hosed for owning the paint on the dry wall and nothing else….😵💫🤔. Maintenance fee’s always go higher especially in older buildings.
You still pay taxes, utilities and maintenance on a house......I just moved from a house to a townhouse condo and the decrease in my utilities and property taxes more than makes up for the condo fees and I don't have to shovel or pay someone to wash my windows..
Supply problem remains entrenched here in coastal BC though. BC built 15,000 detached houses in 2003. BC Built 6,500 houses in 2023 despite a 40% increase in population. It's become a relatively scarce item yet remains the basic minimum standard for the middle class family to own one or live in one. Condos are more like tulip bulbs - you own very little and are everyone's bktch (strata councils, dipper-run municipalities, no real land for multiple uses etc), float on the market ups and downs like a leaf on the wind. But of course, you have to have 250k income to afford a detached house now - which is crazy. I like the other comments that recommend leaving Canada for the US red states or at least moving to Alberta.
I think the thing you missed was the fact people renting their homes are dealing with more rules and harder to evict non payment combine that with capital gains tax on home ownership and ts not as profitable to invest and investment groups have driven real estate now for years - As the profit leaves so do they and the rapid jumps in value
@@GreenBeanGreenBean is getting ready, loading my cash reserves, and getting my credit lines zeroed and ready to go. I'm not waiting til 2025 to continue buying, even tho it will be a great year to buy
So condo prices should plummet at least 40% (even if it seems crazy and will bring crisis) as all homes out there there is when the economy will start to recover. If BoC continues to work for the system to save the price as it’s now it will make the bubble enormous and eventually will blow sooner or later.
condo prices will be moving on up 40% as the rate cuts tilt everyone back into cashflow positive and supply drops off a cliff..... but it won't happen right away... that is a late 2025 story. When BoC is at 2.5% and you can get a mortgage for mid 3s....watch out above.
higher rates for longer is what saved the market from crashing an extra few years delay that movement pacing or speed needs to be or will be 100% expedited to catch up to real values. Low rates is what will destroy the market or artificially quicken pricing to real values or where they should or really are @ this time just not reflective in the market. Prices will play catchup but many will be in bad shape and good or great deals will be dime a dozen. So you pick and choose the best deal relative to the timing. It's not just pricing of the homes also mortgage rates comparable each quarter- 2 quarters as well. Many that jump the gun will buy more or less expensive while paying more/100K mortgage as well redistributing the value proposition within the market itself.👇
Im still baffled about how people are even thinking and talking about buying a house. I mean, who has that kind of money? Im an expert IT Guy and barely making just enough to live with two kids! This wont sustain in the long run. I mean families like us burst out someday. This country is no more habitable! And this is how it is, and it cannot be reversed. I am an immigrant, and I wouldn't settle in a country where basic need like housing and healthcare system is shattered. I have options!
I believe that in Canada, it has become a privilege to own a home...if you hold enough wealth to buy a house, you can think about buying a home..otherwise you can just pay off someone's mortgage. Housing prices are way out of range, especially for new buyers...😊
People are starting to factor in future taxes increases on all federal, provincial and municipal. Unless price goes down significantly y'all gonna get shafted pretty hard, might be paying 80-90% taxes when all is said and done. Of course bloomers with 0% tax profit from this.
I hope that sellers and buyers can come to a respectable agreement between themselves. And strive for a fair and honest outcome. A win win leaves a better taste in your mouth. Working in the best interest of your clients doesn't mean rip the other party off. Lets get that straight. Good luck everyone. I think its going to be .5 thats my vote. They already taken so many mortgage holders and increased their rates to a point of unaffordable. They want more money!!!!! Its like a going out of business sale!! Woo hoo.
i want to get on the market to some extent. i want my forever home. sadly i am new to this, disabled, a first time buyer and a uk resident looking to immigrate to canada. i have really picked the hardest choice. good lord i am so confused. lol.
I know that real estate agents are desperate for the hot market to come back, but rate cuts so far have shown that they've brought sellers back to the market, not buyers and i'm expecting that trend to continue. Economic weakness means continued weakness for housing activity, and besides the pandemic, unemployment hasn't been this high since 2017.
rate cuts (or increases) does not affect the market the next day... stop with the day trading mindset. These effects won't be felt for 6 months (spring time 2025).
@@GreenBeanGreenBean That's incorrect. The FULL impact of the rate cuts won't be felt for ~6+ months, but some of the impacts are felt immediately or soon thereafter. Some individuals will change their economic activities based on the sentiment shift from rates going down. Such as home sellers listing their home, or buying more consumer goods because they feel more wealthy from lower rates.
@@ElectronicWasteland-p2x 100% incorrect... the immediate impact of rate cuts or increases is minimal..... it literally took many a hike from the 0% to 5% for the bite to finally kick in. Most people with locked in mortgages won't feel the impact for years..... which is most of the market. It will spur a few more buyers initially but people usually wait a while before large purchases.... ain't nobody buys a new car the next day because of a 25 bps rate cut. Period.
@@GreenBeanGreenBean You seem to be extremely confused what economists mean when they say the "full effect" of rate hikes isn't seen for months. It's not like there's no effect then all of a sudden you get 100% of the economic impact at month 6. It's more like maybe month 1 you'd get 5% impact, month 2 like 10%, and on and on. It's not a binary thing so stop intentionally oversimplifying. Also with borrowers as indebted as Canadians are and with so much debt in variable rates even without taking sentiment into account, rate impacts are felt immediately for many people, and can affect their spending habits at their very first adjusted mortgage payment.
it is quite simple you will experience lower highs and lower lows for 15-30 months along side consolidation that takes place within the ranges however the biggest issue is going to be the amount of capital people loose or continue to loose during this dynamic relative to income/cash negative circumstances. More listings will come on the market at the same time to apply down pressure on the lower rates as good deal 7 weeks ago example will be standard deal 2 months following etc. Hence the lower highs and lower lows across the pricing movements rotation. Also factoring in purchasing power relative to cost of borrowing every 100k mortgage. DONT BUY HERE! US will experience a boom cycle! Better off buying there in a good zone getting a 10-25% discount next 6-12 months and then riding that profit for the 2 ish years then refinancing the profit from that home and then coming back here @ that time if you are looking in the central GTA or Vancouver area especially.
YO DUDE you are full of it! Things are tanking. NO way will I subscribe to your channel you are not speaking the truth. We are going into the big D not the little R so how about you wake up and speak the truth
How has the average earnings-to-house price ratio changed over the past 30 years in both big cities and smaller towns? Additionally, could you provide information on the number of households earning between $100K to $125K, near $150K, and above $200K? It appears that earnings haven't increased at the same pace as real estate prices, regular expenses, or inflation. Given this disparity, is there concern that the real estate market may not have sustainable growth left due to affordability issues?
US inflation is resurging, good chance ours will too. I wouldn't bet on a full point by the end of the year, although .5 tomorrow is likely. Also, real bond rates have been going up, not down, regardless of what the overnight bank rate is.
Rates will likely be settling at 2.5-3% when dust settles.. Just use common sense. It has to all be able to work with a 1.3 mil home with 5-10% down on a mortgage.
Yield curve is negative and the boc is trapped. Damed if you do and damed if you don't. Dca followed by a true full on bust in a few years.the Canadian economy has been a shitshow for tge past 20 years
and what does it tell you if they have to "shock" the market? RE has peaked. We will have a new government and they will dramatically decrease immigration/ refugees/ PRs as we cannot afford to give everyone money when they don't contribute. The best thing to do as an investor is to sell now and if you have a house you can't afford downsize or sell before everyone else does next Spring.
Inflation is here to stay, but it will swing both ways on its way to higher for longer. Rates have moved in 30yr cycles since the 1700s The end of the last cycle was downward which ended in 2021.
It’s simple people are broke and nobody can afford anything let alone buying a house .!!! Interest rates could go to zero and it wont make a difference. The only people it would help is people like me that own multiple income properties. I own a construction business for new homes and the market is flat .!! I’ve been in business since 1998 and I’ve never seen it like this.
In the future you will have a bunch of folks wishing they bought in 2024. The reality is when rates went up some people lost and some people won. On the way down some will win some will lose. Timing the bottom to buy if fools Gold. BUY when its right for YOU!
…..Said no one ever. The housing market is a scam. The gig is up. The gov’ts & greedy corporations are trying to turn the channel so we don’t catch on that the everything bubble is about to explode
I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’ is a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Canadian real estate had peaked, there no opportunity left in Canada,why someone sacrifice his or her life for just debt payments
Because having more debt makes you poor , then you can avail of the maximum government benefits 😂
@@Pri10479or because 65% of my mortgage payment comes of the principle outstanding, making the real cost of housing less than rent and eventually will be fully paid off.
Just as in nature a contry that does not naturally reproduce is a dead nation.
I have been hearing the same thing since 1980s.. imagine I bought houses at that time not even care about being peak or over valued 45 yrs ago.
Agreed but builders, developers, Govt , banks, realtors think if they gang up and stick with higher prices then people will have no choice since everybody needs a roof.
The home value you get for your dollar is awful - it's no longer worth it. The combination of high taxes and the government encouraging massive debt to prop up this disaster has created an environment where owning a home and having a family is no longer viable.
I want to own a decent home, have a family, take a few vacations, and be able to retire without a massive amount of debt. I'm a 5th generation Canadian and recently left this country for a place that can actually offer me the life I want.
100% its a shame what has been done to Canada… we are leaving also. Good luck to you 😊
2.5 years before I can leave this downward swirling toilet bowl of a country.
Byeeeeeeeee
We also left and moved all out. Canada is in a bad shape. Sadly worst place to invest now or get into real estate. They wanna take from the hard working people to feed the useless
@@francisbailey7645toilet bowl is a good way to describe this place
"Purchasing power" is such a sneaky term for "ability to sink yourself with more debt". I'll remain on the sidelines.
Rate cuts are not going to help the real estate market
Everything needs to drop like a sack of potatoes. Government and society shouldn't reward and correct those with gross negligence and fraud of their finances.
I think rates will go down, prices will not go up significantly, and anybody who's waiting for prices to go up will panic realizing that prices aren't going up, and all that inventory that you said is waiting for lower interest rates is going to be on the market. It doesn't matter how cheap things are when nobody has any money left to spend on it
@@BrandonSchleifer people have a lot of money to spend right now. It’s about the average Canadian, not the poorest. The average Canadian has a lot of money to spend on a house right now. Housing prices will never collapse in Canada. This is a mild correction.
"It doesn't matter how cheap things are when nobody has any money left to spend on it" Therein lies the key. The secret to dealing with the coming disaster is to see it coming. For those who did, there have been choices that were made that will position them well to grab the opportunities that are coming in the future. They started several years ago when money was cheap.
We all have heard of the Great Depression. What many of us have not heard is how those who saw it coming and planned in order to be ready when the nation began to recover. What many of us don't realise is that a lot of millionaires were created during the depression. They could do it again if they are smart.
Rates will be at levels on the upside you can't even imagine in 2025. Annihilation of the masses.
there are always people with money willing to buy at some price.... during the 2008 GFC when USA prices went down 50%, guess who bought all the houses.... that would be hedge funds and blackrock. When rents are the same and prices down, that means cap rates go up which means more investors, not less..... investors that will buy up everything and sell it back to you for higher later on.
@@Joseph-wg5qb i don't know what planet you live on, but here on earth, the majority of people have no disposible income much less buying a property at the current levels.
When did $200 dinners out with two adults, three kids, and no drinks become normal?
Why do you keep buying it then? If you can't afford it, don't fool yourself. Don't do it. If you pay that much for food, you are the cause and source of the problem.
Because there's too many damn people, we go out maybe once every couple months as a family of 3 to spend time together or perhaps we are out and can't have time to cook. So even tho it's rare we go out restaurants don't care keep jacking prices
@@masquereseau5635 didn't say I couldn't afford it
Ya that's why I don't go out to restaurants much anymore
A housing crash is the only way to get prices down to affordability.
guessing your not a home owner
It would have to be a crash of at least 75%.
@@talalztube Guessing you are current day owner, putting yourself in massive debt, hoping to flip.
@@talalztubeat this point it's either you or me and it sucks the government had created this kind of conflict
Or move somewhere else😅
Rapidly falling rates signal a weak economy. The "have's" don't want to become the "have nots", and will sit out on the sidelines. We will probably see a swell in listings as people try to unload their homes. This in turn, will keep the supply/balance in check. With the next CPI probably pointing towards 1%, many will begin to perceive deflation on the horizon. They will simply chose to wait for prices to fall further. We could then enter a dangerous point in the economy. Watch the bond market & stock markets for the early signals.
Yes- 100% agree. The bond market looks bleak for Canada. As a first time home buyer I am thinking I will have to wait for another 3-4 years as I think we will have a slow bleed not drastic. I don't believe it will be smart to buy for another 2 years minimum.
@@rachelk8368 When it comes to timing the market...buy when you have the downpayment and can afford the mortgage. Regardless of what is happening. We bought our first house in 1981 for $43k with 10% down. They were selling for $12k 20-years earlier. We had a 17% interest rate. People said we were nuts and were just waiting for failure to come. That same house today would be worth $650k.
The point is, the housing market is just like the stock market, except it has a much longer cycle time. Should it drop, just hang tight until it recovers.
Your hopes are not reality… Canada is BROKE and will take 50 years to fix it. You are better off to leave if you can. Good luck 😊
@@Hectorsgirllori That''s what people said in 1988-89
@@mikep4869 do some research !!
These current prices on homes in GTA and GVRD at least are based on BOC rate being 0.25% for two years. These cuts will do nothing to stimulate those two markets
LIFE IN CANADA: Average person makes $5,000 per month, (so a couple makes $10,000 per month) yet you have to pay: Mortgage: $8,740 Property Taxes: $892 Total: $9,632 per month. So you are now left with $368 for everything else in life, including food and clothing.
Bro average people make nowhere near 5k a month
More like 3800 per month is avg
I have 10 years IT experience, and I make only 5000 after taxes! I have two kids, and we are barely making our ends meet. My wife is trying for a job from a year (made over 1000 applications!). I feel kind of strangulated. Leaving this country.
what the did u pay for that house and how big is it? thats a huge mortgage and property tax bill. well beyond that income, which after tax is quite a bit.
@@vijju-j8u $5,000 per month is good enough for 4. Healthcare and schools are free in Canada. Be grateful for that.
@@JaiHustleseven worse just think how bad the economy will collapse
Ah….condos are still too expensive, if you subtract the mortgage costs from the taxes,utilities, and the maintenance fee’s you’re being hosed for owning the paint on the dry wall and nothing else….😵💫🤔. Maintenance fee’s always go higher especially in older buildings.
You still pay taxes, utilities and maintenance on a house......I just moved from a house to a townhouse condo and the decrease in my utilities and property taxes more than makes up for the condo fees and I don't have to shovel or pay someone to wash my windows..
Supply problem remains entrenched here in coastal BC though. BC built 15,000 detached houses in 2003. BC Built 6,500 houses in 2023 despite a 40% increase in population. It's become a relatively scarce item yet remains the basic minimum standard for the middle class family to own one or live in one. Condos are more like tulip bulbs - you own very little and are everyone's bktch (strata councils, dipper-run municipalities, no real land for multiple uses etc), float on the market ups and downs like a leaf on the wind. But of course, you have to have 250k income to afford a detached house now - which is crazy. I like the other comments that recommend leaving Canada for the US red states or at least moving to Alberta.
Canada will be the first G7 country to feel the currency debasement crisis that will eventually end in a global monetary reset.
I think the thing you missed was the fact people renting their homes are dealing with more rules and harder to evict non payment combine that with capital gains tax on home ownership and ts not as profitable to invest and investment groups have driven real estate now for years - As the profit leaves so do they and the rapid jumps in value
even the next .5% cut wont be enough. i called 6 cuts before this all started . spring 2025 will be the next frenzy.,
yep feb or jan of 2025 is the kickoff, when the BoC rate will be in the low 3s trending to 2.5.
@@GreenBeanGreenBean is getting ready, loading my cash reserves, and getting my credit lines zeroed and ready to go. I'm not waiting til 2025 to continue buying, even tho it will be a great year to buy
@@GreenBeanGreenBean my Palantir options have been and continue to print $$ so you are right, Canadians have tonnes of cash ready to go.
So condo prices should plummet at least 40% (even if it seems crazy and will bring crisis) as all homes out there there is when the economy will start to recover. If BoC continues to work for the system to save the price as it’s now it will make the bubble enormous and eventually will blow sooner or later.
condo prices will be moving on up 40% as the rate cuts tilt everyone back into cashflow positive and supply drops off a cliff..... but it won't happen right away... that is a late 2025 story. When BoC is at 2.5% and you can get a mortgage for mid 3s....watch out above.
higher rates for longer is what saved the market from crashing an extra few years delay that movement pacing or speed needs to be or will be 100% expedited to catch up to real values. Low rates is what will destroy the market or artificially quicken pricing to real values or where they should or really are @ this time just not reflective in the market. Prices will play catchup but many will be in bad shape and good or great deals will be dime a dozen. So you pick and choose the best deal relative to the timing. It's not just pricing of the homes also mortgage rates comparable each quarter- 2 quarters as well. Many that jump the gun will buy more or less expensive while paying more/100K mortgage as well redistributing the value proposition within the market itself.👇
So what happens when housing prices don’t go up or even drop. It will be the biggest housing crash ever!!!
We can only hope. They have to drop 50% just to approach affordability.
Im still baffled about how people are even thinking and talking about buying a house. I mean, who has that kind of money? Im an expert IT Guy and barely making just enough to live with two kids! This wont sustain in the long run. I mean families like us burst out someday. This country is no more habitable! And this is how it is, and it cannot be reversed. I am an immigrant, and I wouldn't settle in a country where basic need like housing and healthcare system is shattered. I have options!
What's stopping you
I would love a deflation in prices.
I believe that in Canada, it has become a privilege to own a home...if you hold enough wealth to buy a house, you can think about buying a home..otherwise you can just pay off someone's mortgage.
Housing prices are way out of range, especially for new buyers...😊
People are starting to factor in future taxes increases on all federal, provincial and municipal. Unless price goes down significantly y'all gonna get shafted pretty hard, might be paying 80-90% taxes when all is said and done. Of course bloomers with 0% tax profit from this.
I hope that sellers and buyers can come to a respectable agreement between themselves. And strive for a fair and honest outcome. A win win leaves a better taste in your mouth. Working in the best interest of your clients doesn't mean rip the other party off. Lets get that straight. Good luck everyone. I think its going to be .5 thats my vote.
They already taken so many mortgage holders and increased their rates to a point of unaffordable. They want more money!!!!! Its like a going out of business sale!! Woo hoo.
i want to get on the market to some extent. i want my forever home. sadly i am new to this, disabled, a first time buyer and a uk resident looking to immigrate to canada.
i have really picked the hardest choice. good lord i am so confused. lol.
Sadly house insurance costs have increased…
I know that real estate agents are desperate for the hot market to come back, but rate cuts so far have shown that they've brought sellers back to the market, not buyers and i'm expecting that trend to continue. Economic weakness means continued weakness for housing activity, and besides the pandemic, unemployment hasn't been this high since 2017.
rate cuts (or increases) does not affect the market the next day... stop with the day trading mindset. These effects won't be felt for 6 months (spring time 2025).
@@GreenBeanGreenBean That's incorrect. The FULL impact of the rate cuts won't be felt for ~6+ months, but some of the impacts are felt immediately or soon thereafter. Some individuals will change their economic activities based on the sentiment shift from rates going down. Such as home sellers listing their home, or buying more consumer goods because they feel more wealthy from lower rates.
@@ElectronicWasteland-p2x 100% incorrect... the immediate impact of rate cuts or increases is minimal..... it literally took many a hike from the 0% to 5% for the bite to finally kick in.
Most people with locked in mortgages won't feel the impact for years..... which is most of the market.
It will spur a few more buyers initially but people usually wait a while before large purchases.... ain't nobody buys a new car the next day because of a 25 bps rate cut. Period.
@@GreenBeanGreenBean You seem to be extremely confused what economists mean when they say the "full effect" of rate hikes isn't seen for months. It's not like there's no effect then all of a sudden you get 100% of the economic impact at month 6. It's more like maybe month 1 you'd get 5% impact, month 2 like 10%, and on and on. It's not a binary thing so stop intentionally oversimplifying.
Also with borrowers as indebted as Canadians are and with so much debt in variable rates even without taking sentiment into account, rate impacts are felt immediately for many people, and can affect their spending habits at their very first adjusted mortgage payment.
@@ElectronicWasteland-p2x your entire argument is people go buy a car the next day after a 25 bps cut.... this is not the case.
Stop being wrong.
Yield curve is negative and the boc is trapped. Damed if you do and damed if you don't.
Dca followed by a true full on bust in a few years.
Im liking REITs right now, undersold and a lot of upside with rate cuts. Look at H&R , SRU, riocan. Loading up on them now
Whats the neutral fixed rate in general? Like whats the fixed rate generally when the economy is functioning as expected.
In reality in a healthy economy? Around 5%. In infinite government and mortgage debt land, 1%.
it is quite simple you will experience lower highs and lower lows for 15-30 months along side consolidation that takes place within the ranges however the biggest issue is going to be the amount of capital people loose or continue to loose during this dynamic relative to income/cash negative circumstances. More listings will come on the market at the same time to apply down pressure on the lower rates as good deal 7 weeks ago example will be standard deal 2 months following etc. Hence the lower highs and lower lows across the pricing movements rotation. Also factoring in purchasing power relative to cost of borrowing every 100k mortgage. DONT BUY HERE! US will experience a boom cycle! Better off buying there in a good zone getting a 10-25% discount next 6-12 months and then riding that profit for the 2 ish years then refinancing the profit from that home and then coming back here @ that time if you are looking in the central GTA or Vancouver area
especially.
Where are the stats that inflation (excluding RE) is at 0%?
Inflation is at 1.6% ??? Yeah , and I have a bridge to sell , it's located in Brooklyn.
Encouraging more debt while municipalities jack up development charges and add pointless 'green' regulation is a very toxic combo
Once again the BofC has delayed far too long on taking significant action. It is affecting the entire economy not just housing.
I think a change of government and policies with physical prof positive changes are being made will be the only possible market shock
YO DUDE you are full of it!
Things are tanking. NO way will I subscribe to your channel you are not speaking the truth. We are going into the big D not the little R so how about you wake up and speak the truth
say no to drugs, which you are clearly on.
@@GreenBeanGreenBeanOK bean fart
@GreenBeanGreenBean debatable, but insults only lose arguments suggest low I.Q levels.
Tom, glad to hear your rational forecast- recession inevitable. Canadian dollar will continue to fall and could spark inflation ( ie import of food).
How has the average earnings-to-house price ratio changed over the past 30 years in both big cities and smaller towns? Additionally, could you provide information on the number of households earning between $100K to $125K, near $150K, and above $200K? It appears that earnings haven't increased at the same pace as real estate prices, regular expenses, or inflation. Given this disparity, is there concern that the real estate market may not have sustainable growth left due to affordability issues?
US inflation is resurging, good chance ours will too. I wouldn't bet on a full point by the end of the year, although .5 tomorrow is likely. Also, real bond rates have been going up, not down, regardless of what the overnight bank rate is.
Thanks.. Let's wait and see what would happen.. What about the election, possible global wars and related immigration effects?
Until builders and banks become accountable all this crash will do is reset the clock until another crash.
It’s not going to change anything. Housing prices tripled in the last 8-10 years. Most people can’t buy anymore 😮
Canadians don't have any money! Loans and debt may be purchasing power but no one who would need to use that feel that way.
the bank of canada is very much aware of the risk of making money too cheap and too easy
I’m waiting for the house market to go up so I can get out of this scam soon 🔜
Rates will likely be settling at 2.5-3% when dust settles.. Just use common sense. It has to all be able to work with a 1.3 mil home with 5-10% down on a mortgage.
Deflation is a fantasy at this point.
Yield curve is negative and the boc is trapped. Damed if you do and damed if you don't.
Dca followed by a true full on bust in a few years.the Canadian economy has been a shitshow for tge past 20 years
and what does it tell you if they have to "shock" the market? RE has peaked.
We will have a new government and they will dramatically decrease immigration/ refugees/ PRs as we cannot afford to give everyone money when they don't contribute.
The best thing to do as an investor is to sell now and if you have a house you can't afford downsize or sell before everyone else does next Spring.
and then there will be another new peak higher down the line.... as has happened again and again and again.
Inflation going back up hommie
Inflation is here to stay, but it will swing both ways on its way to higher for longer. Rates have moved in 30yr cycles since the 1700s
The end of the last cycle was downward which ended in 2021.
It’s simple people are broke and nobody can afford anything let alone buying a house .!!! Interest rates could go to zero and it wont make a difference. The only people it would help is people like me that own multiple income properties. I own a construction business for new homes and the market is flat .!! I’ve been in business since 1998 and I’ve never seen it like this.
Leave Canada for a better life
Please consider using a pop filter
Need mortgage rates back in 2%-3% range to get the market out of graveyard
Bull market starting at some point in first half of 2025. Locked in
50 basis points on Wednesday and 50 in December is now what I’m hearing vs 25 in December 🧐
To the moon baby..... Stimulate ......
You kinda look like Moriarty from Sherlock 😛
I've heard that a few times!
stop the nonsense, who can afford a home at this price as a wager earner?
In the future you will have a bunch of folks wishing they bought in 2024. The reality is when rates went up some people lost and some people won. On the way down some will win some will lose. Timing the bottom to buy if fools Gold. BUY when its right for YOU!
…..Said no one ever.
The housing market is a scam. The gig is up. The gov’ts & greedy corporations are trying to turn the channel so we don’t catch on that the everything bubble is about to explode