Housing markets not built to withstand these interest rate levels, says Vancouver realtor

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  • Опубликовано: 2 янв 2025

Комментарии • 130

  • @jeffr2345
    @jeffr2345 2 года назад +30

    If the housing market was not built to withstand NORMAL interest rates, then the housing market was built to fail.

    • @billferguson1368
      @billferguson1368 2 года назад +1

      Don't pay any attention to this guy. Or, his sidekick, Pasalis.

    • @adrienbancroft7895
      @adrienbancroft7895 2 года назад +1

      Bingo

    • @andrewmccoll1582
      @andrewmccoll1582 2 года назад

      He is spot on the money. Are you scared and want to ignore him?

    • @billferguson1368
      @billferguson1368 2 года назад

      This guys flip flops around like a landed mackerel. When it suits him, of course.

    • @rmartin5285
      @rmartin5285 2 года назад +1

      @@billferguson1368 So we have a guy in Ottawa “who doesn’t think about monetary policy” that literally printed hundreds of billions of dollars and quite literally flung the money around. This insane fiscal irresponsibility is going to take YEARS of higher interest rates to damp down the nearly uncontrollable inflation that has resulted. Home owners are completely deluded if they think they are somehow immune to the broader economic disaster that is coming. Tighten your seatbelt.

  • @Hoser584
    @Hoser584 2 года назад +12

    Poor Steve he’s not making, stupid money for listing that were selling in a week , he and his realtor buddy’s have been a big part of the problem , the whole industry knew dirty off shore money was fueling the unsustainable rise in real estate but , bankers mortgage brokers we’re doing so well they kept quiet .

    • @bi6235
      @bi6235 2 года назад +3

      he might have to get a real job for a change as opposed to just being a leach in a huge asset bubble. that's why he's always on TV crying about interest rates going up.

  • @quixomega
    @quixomega 2 года назад +5

    The housing markets aren't built for average interest rates? It's almost like incredibly low interest rates created some sort of market bubble.

    • @parkerbohnn
      @parkerbohnn 2 года назад

      They're bult for 10 to 20 percent interest rates.

    • @kakayou546
      @kakayou546 2 года назад

      Low rates created a housing market

  • @baseline6786
    @baseline6786 2 года назад +5

    Once rates drop. Prices will return to near peak within 3-6months.
    So when will rates pause and then come down some...
    2018 flushed out many of the problem buyers. With the stress test.
    So ppl are able to support these rates short term anyway

    • @RC-fh2lk
      @RC-fh2lk 2 года назад +1

      Exactly

    • @parkerbohnn
      @parkerbohnn 2 года назад

      It will probably take until 2025 or later. Everything depends on what happens to real estate in China.

  • @adrienbancroft7895
    @adrienbancroft7895 2 года назад +8

    So basically our epic ponzi scheme is predicated by of incredibly low rates? Sound sustainable

    • @parkerbohnn
      @parkerbohnn 2 года назад +1

      Not exactly, the Chinese caused the entire fiasco.

  • @RJ_331
    @RJ_331 2 года назад +5

    He's right, I'm not buying at these prices. Van and greater Van real estate is out of control. Sellers still think this is a sellers market, it's not.

    • @donm2067
      @donm2067 2 года назад +1

      I live in the middle of butt hole no where, everyone still thinks their 3 acres is worth 1m$

    • @dranderson6071
      @dranderson6071 2 года назад +1

      Sellers market until immigration decreased. Cheers

    • @RJ_331
      @RJ_331 2 года назад +1

      @@dranderson6071 no it's not lol. Have you not been paying attention to how many listings have been removed due to no interest?

  • @balsindha
    @balsindha 2 года назад +6

    Well, it was clear as a day to anyone who has rhe slightest financial knowledge. Of course your guest was busy pumping it just a few months ago, betting that the ridiculously low rates will stay forever. Now the inevitablenhas happened, there is no end to his whining. Why do you bring him again is beyond me. He is a shill whose only interest is in pushing his sales commission.

    • @adrienbancroft7895
      @adrienbancroft7895 2 года назад +2

      BNN parades the clowns as usual..

    • @bi6235
      @bi6235 2 года назад +1

      couldn't agree more. this agent is a clown. he seems upset as he might have to get a real job now.

  • @dougreed736
    @dougreed736 2 года назад +7

    Justin flation

  • @zomgoose
    @zomgoose 2 года назад +7

    Let it Burn!!! 🔥🔥🇨🇦🇨🇦🔥🔥

  • @donm2067
    @donm2067 2 года назад +11

    I hope the realtors go broke

  • @dirtlump
    @dirtlump 2 года назад +9

    The Real Estate market may not be built to withstand higher rates..... but nor are macro fundamentals for Canadian Families built to withstand runaway cpi inflation ?
    Rates MUST rise against inflation..... Full Stop !
    If you purchased a Home within the last few years you were stress tested for this eventuality...... live with it.

    • @ronbonora7872
      @ronbonora7872 2 года назад

      some of the fools who over paid will be going to see the bankruptcy trustee soon!

    • @parkerbohnn
      @parkerbohnn 2 года назад

      Rates must rise to make me wealthy all over again. I've been robbed by criminal falling interest rates for the last 40 years. Paul Volcker made me a very wealthy man.

  • @patsyryan9316
    @patsyryan9316 2 года назад +50

    Been considering going into the housing market but with the number of bad news coming from the sector, I am not confused. Given the present conditions, is it better to invest into Real Estates or into Stocks? Which would yield better output especially with one with less time on his hands.

    • @Mrcarlson_E
      @Mrcarlson_E 2 года назад +7

      Has got to be Stocks but of course, you have to be well informed on the right ones or better still, get a pro to handle it for you (that way, you save time and minimise risks). Made my first million this way earlier this year. One more thing, one can wake you up by 2am to complain about a leaking pipe, the other can't.

    • @paulagoodman7530
      @paulagoodman7530 2 года назад +3

      @@Mrcarlson_E Very sound advise! I have been into both for long and though I won't say I have lost a fortune, I have squandered quite a lot... If it's not a problem, do you mind recommending the pro you worked with? I could definitely use the help of one right now... I look forward to your reply...

    • @mrmoore9481
      @mrmoore9481 2 года назад +5

      Why not both??? diversify!!!

    • @Mrcarlson_E
      @Mrcarlson_E 2 года назад +6

      @@paulagoodman7530 Funny enough, I can honestly relate. It's not as easy as it may sound and takes some level of decisiveness and discipline. I don't know if I am permitted to drop it here, but her name is "Leah Marie Sandock". Was in the news a lot in 2018. You may look her up for more.

    • @lenamcgee2937
      @lenamcgee2937 2 года назад +3

      @@Mrcarlson_E wow I know this little lady. Once attended a fundraiser she was also in attendance in Vancouver,, Great speaker with a funny accent,, She's American though, I doubt she works with foreigners,,,

  • @Alanom2007
    @Alanom2007 2 года назад +10

    This is just the beginning. I hope this market crashes hard.
    Houses are meant for living not investing and laundering dirty money

    • @mildew44
      @mildew44 2 года назад +1

      sadly nothing is preventing from funds buying houses. sad to imagine a large private fund can just buy an entire block of detached houses, and just rent it out.

    • @parkerbohnn
      @parkerbohnn 2 года назад

      All the homes bought with laundered money should be bulldozed by the Canadian government.😁

  • @kentA205
    @kentA205 2 года назад +2

    Having guests that discuss real estate for each province would be very nice as opposed to the highest priced properties in greater B.C. and Toronto. There's a whole country watching BNN :)

    • @polishtheday
      @polishtheday 2 года назад +1

      Yes. I’m now in Quebec but used to live in Vancouver. The housing market is vastly different in the two places. It’s not just prices but also lifestyles, expectations. The for sale signs are the most numerous in February and, yes, the over 60% here who rent normally move on July 1. There are some similarities though. New condos are getting more expensive than an older house because construction costs are going up just like everywhere else. Prices in new towers downtown seem unrealistic considering what you can get for the same amount in an inner suburb. And the government is trying to put the brakes on immigration to some extent. It will be interesting to see what happens. I’m just glad I switched my mortgage to a five year fixed when interest rates were lower. I’d like to sell and rent because it means more freedom but I’m going to stay put awhile because rents are going up too.

  • @parthppatel28
    @parthppatel28 2 года назад +3

    Those lost volumes are greasy investors too. It was a big industry pushing genuine home buyers out of market to own a home!
    Policy makers are right, the market should balance like this I don't know why Steve is surprised. He's surprised his business why away but his business is at the cost of shelter for common man.

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    @curtisjefferson2489 2 года назад +25

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      @lisaroger5371 2 года назад

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    • @garyfrancis605
      @garyfrancis605 2 года назад

      I know little or nothing about investment. I also don't know how to get started

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      @tracyjohnny4575 2 года назад

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  • @leinad5243
    @leinad5243 2 года назад +9

    I though there was a house shortage lol

    • @m.b5777
      @m.b5777 2 года назад +4

      Haha it's a myth. Thousands of homes owned by flippers are empty right now

    • @adrienbancroft7895
      @adrienbancroft7895 2 года назад +3

      How many air b and b investors are within a year of listing their properties? Carnage enroute

    • @parkerbohnn
      @parkerbohnn 2 года назад +1

      More like a shortage of peoples' braincells.

  • @Tina-di4lx
    @Tina-di4lx 2 года назад +6

    Too bad. That’s what happens when a government allows the housing market to super inflate
    I don’t care. I hope it goes straight into the toilet.
    It’s time for a correction.
    Nobody’s selling right now that’s why inventories are low.
    Sellers still have jobs and they will hang on for recovery.
    Those home owners who over bought. They deserve what ever may come as interest rates correct.

  • @tillyburton5402
    @tillyburton5402 2 года назад +1

    the only disruption is the government is not making money on the transfer tax, that how they know that there is a down turn in sales.

  • @2l84t
    @2l84t 2 года назад +3

    Housing market not built to withstand loss of easy money is more like it.

  • @camclarke9952
    @camclarke9952 2 года назад +3

    But there ok too triple in value?

    • @donm2067
      @donm2067 2 года назад

      prices have tripped in 5 years

  • @sebastienloyer9471
    @sebastienloyer9471 2 года назад +3

    Walmart and Canadian Tire are selling tent's cheap.
    Here is your New housing market.

    • @adrienbancroft7895
      @adrienbancroft7895 2 года назад

      Try and buy a decent van or camper van online? Suprise suprise you cant

  • @parkerbohnn
    @parkerbohnn 2 года назад +1

    We need interest rates in double digits not at 5,000 year lows like today.

  • @hellojmsy2963
    @hellojmsy2963 2 года назад +6

    Ok markets are not but buyers should be able to with stand these extreme prices !!! I wish there is another one full point hike again so you guys start shitting in pants

  • @leinad5243
    @leinad5243 2 года назад +7

    Agents halfta get a real job

    • @donm2067
      @donm2067 2 года назад +1

      with zero marketable skills besides a pulse, I wonder what they will be? Walmart greeter, pizza maker?

    • @bi6235
      @bi6235 2 года назад

      that's why he's always on TV crying about interest rates normalizing.

  • @kqh123
    @kqh123 2 года назад +4

    Saretzsky has been going hard in the media appearance paint

  • @andrewmccoll1582
    @andrewmccoll1582 2 года назад +2

    HAHAHA! I guess they are built on the shakiest pillars of sand after all. "The housing market is so solid it can't withstand interest rates at 2.5%". People from the 80s would roll on the floor.

  • @stevepedersenhoike4399
    @stevepedersenhoike4399 2 года назад +43

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  • @gordoncavanaugh8744
    @gordoncavanaugh8744 2 года назад +4

    My thoughts are that the increase in the interest rate hit the investor pools hard. Yet, the demand is still there for home occupation. The lower sale volume is therefore more descriptive of how large the investor pools have become. Pools that buy blocks of housing for appreciation and the ability to achieve high rents. This is shadow inventory that can come spilling back onto the market as investors tend to be more risk adverse than home owners as investors would want to cut their losses. Investor pools that have bought blocks of housing are less likely to lower rents than someone with a basement suite. If the investors reduce the rent for one, then every other tenant will want a rent reduction too. The investor pools have to accept a higher vacancy rate and longer lease up periods as it would be worse to lower the rent.
    If the construction trades slow down then there will be a spike in unemployment and vacancy rates. Construction workers are mostly transient and tend to be the ones paying the high market rents. So, I'm not that concerned about the market prices but the high rents being paid are alarming. You can leverage a purchase but you can't leverage your rent.
    Unlike mortgage rates, a rise in unemployment and the vacancy rate would have an immediate impact on many home owners not being able to meet their mortgage payments. Miss one or two payments and the lender will adjust your mortgage. Miss three or more and you're into foreclosure. And you don't need many homes to go into foreclosure to change the dynamics of the market place. If just one, two or three percent of home owners can no longer meet their payments that is pretty serious as it can overwhelm the orderly liquidation of housing.
    The real estate market is only 2 or 3 percent of the total stock of housing. It's actually quite small relative to the total inventory of housing. However, the rental market is much larger as it covers more of the total stock of inventory. I just think that too many home owners rely on rental income to meet their mortgage payments. And that's what alarms me.
    Keep an eye on the unemployment and vacancy rates as they are predictive for the health of the real estate market.

  • @kakayou546
    @kakayou546 2 года назад

    Obviosuly prices would adjust when the amount people can borrow changes, but there arw bunch of other factors at play such as inflation, jobs, quality of jobs, how the usa is doing

  • @qc3096
    @qc3096 2 года назад

    Prices almost the same. What s the use of it.

  • @parkerbohnn
    @parkerbohnn 2 года назад +1

    I've been selling off in bits and pieces and putting it all into Fort Wayne and Indianapolis, Indiana real estate.😁

  • @jaymar1615
    @jaymar1615 2 года назад

    But no homowners or investor complained when the rates where ultra low....that was normal right

  • @Solairethedarksoul
    @Solairethedarksoul 2 года назад

    I’m not selling my place. My mortgage went up by $500 and it’s going to change my family’s spending habits. I’m going to go with a fixed so I can still pay down my principal and every extra dime I have I’m going to pay it off as much as I can. I’m worried about what happened in the 80s with 20% rates.

    • @parkerbohnn
      @parkerbohnn 2 года назад

      I sold off everything here and plowed it all into Fort Wayne and Indianapolis, Indiana homes. Megabucks coming in my future.

  • @vernscrote2237
    @vernscrote2237 2 года назад

    managed to sell my place in Calgary in early June....was SOOOOOOOOOO relieved, could see this drop comin a mile away

    • @dranderson6071
      @dranderson6071 2 года назад

      Prices have increased. Sales decreased. Cheers

    • @parkerbohnn
      @parkerbohnn 2 года назад

      @@dranderson6071 Alberta is like death and taxes. In Alberta real estate falls every year forever.

  • @mmm8547
    @mmm8547 2 года назад

    too funny. these are still pretty low interest rates. Even after BOC hikes to 3.25 or whatever by end of year. An enormous correction like this is long overdue. And no inflated housing markets aren''t built for "high" interest rates, like 2.5 overnight rates, lol.

    • @parkerbohnn
      @parkerbohnn 2 года назад

      The lowest in about the last 5,000 years. I make about 2 million dollars a year in interest. Back in the early 1980's I made about 15 million dollars a year in income in interest alone.😁

  • @Bigjohn928
    @Bigjohn928 2 года назад

    We need more rate high to cool the demands..peoples still buying tiny houses over 1.5 million like there’s no tomorrow!

  • @PSingh-uw1mp
    @PSingh-uw1mp 2 года назад

    So we need perspective of a person, who gets 2-5% per house sales.

  • @savvyinvestor
    @savvyinvestor 2 года назад

    This guy doesn't know what he's saying just basing off old trends. They just cut the video at the end while he's talking. You have no indicators for a rebalancing yet there's not enough data and rates havent been high long enough yet

  • @icemanlol119
    @icemanlol119 2 года назад

    Cheap interest rates is like cockroache hotel you check in but can’t check out, the government will shoot them selves in the foot with this one.

  • @leinad5243
    @leinad5243 2 года назад +1

    Fak where have bnn pumpers gone?

  • @dranderson6071
    @dranderson6071 2 года назад

    When you bring in massive amounts of immigrants real estate stays hot. New buyers can wait but they'll pay more.

  • @bi6235
    @bi6235 2 года назад +2

    really enjoy watching this agent aka housing bubble leach hold back his tears. he might have to get a real job now.

    • @cashmeoutside.
      @cashmeoutside. 2 года назад +2

      I take it you don’t know who steve saretsky is

    • @bi6235
      @bi6235 2 года назад

      ​@@cashmeoutside. is he batman?

    • @cashmeoutside.
      @cashmeoutside. 2 года назад +1

      @@bi6235 check out his stuff, notably The Loonie Hour. he's actually a knowledgeable dude who does his research and shares macro insights the way he sees them. he doesn't just perma-shill housing the way some others do. i've learned a fair amount from him

  • @jaymar1615
    @jaymar1615 2 года назад

    Good

  • @truthteller6743
    @truthteller6743 2 года назад

    Real Estate Margin Calls are coming...

  • @filenew
    @filenew 2 года назад

    It will likely be a long slow drag in the housing sales until the income catches up or the mortgage rate falls as the rental price skyrockets.

    • @jaymar1615
      @jaymar1615 2 года назад

      Incomes will never catch up....prices will continue until they meet the poper income levels

    • @parkerbohnn
      @parkerbohnn 2 года назад

      Income will never catch up to the mortgage rate because the landed immigrants are too lazy to work two jobs instead of one. In fact its a miracle if they even get any job the loafers! My taxes support the entire lot of them.😁

  • @lucygabrielle5112
    @lucygabrielle5112 2 года назад +1

    My advice for all new and beginning investors try to aim to make profits because there’s no joy in losses either.
    Mr john darry is the best man to help you

  • @mrxiong2567
    @mrxiong2567 2 года назад

    hahahahahahaha. So, then... a housing crash is the only option?

  • @dynamics9000
    @dynamics9000 2 года назад

    wow this is a wonderful video... thumbs up ! subbed and liked .... a fellow creator
    !,.,.,.

  • @emporergrimes
    @emporergrimes 2 года назад

    Get a new job real estater