Comments on: Canadian Real Estate Affordability Got Worse With Higher Rates, What Gives?

By: Randy

Randy — Tue, 07 Mar 2023 16:05:21 +0000

Still don’t understand the goal here, housing has gone crazy thanks to all these people buying million dollar houses. These same people have the means to pay even more than the over priced listing and have the means to outbid any other interested party by 50 to 500k ? Or more ? Where did all this extra money come from ? Obviously raising interest rates won’t have any effect on this massive group of buyers. So with these interest hikes plus these people outbidding the normal person, any chance of the house with a white picket fence is gone .. for at least 5 to 6 years. By then the damage done, through renewals, credit consolidation, will ruin 25% of home owners. No correction to the things causing us pain, food prices, utilities, Helco credit. Tax on top of tax, carbon tax, property tax increases, word to the wise, move in with your parents and forget this whole mess. It’s not worth it, It appears our country is headed into third world country status. Money by the wheelbarrow to buy milk, homeless, we can’t have it all when only the top 1% can afford it. This is the stuff that spurns mass unrest, is that next ?

By: FckPtn

FckPtn — Sun, 05 Mar 2023 00:20:40 +0000

Everyone’s been clamoring for interest rate hikes and now that it’s finally hit, we’re suddenly surprised that it wasn’t the answer? It’s as if higher interest costs make it harder for would be home buyers to finally get into the market.

By: Pat

Pat — Sat, 04 Mar 2023 22:31:13 +0000

In reply to M W.

Their reason for selling is getting their investments underwater and losing money months by months,

Alot of investors were already losing money months to months but the appreciation made it still worth it.

Now on top of that they are bleeding 10s of thousands a months.

And alot can’t afford it as it was their retirement plan so they feel immense pressure to stop the bleeding already.

By: M W

M W — Sat, 04 Mar 2023 21:26:27 +0000

In reply to Average Man. Not going to happen until sellers have a reason to drop the prices. They need to lose their income or have a big expense hit them en masse. People aren't going to sell their houses unless they need to.

By: Pb

Pb — Fri, 03 Mar 2023 22:38:02 +0000

it’ll be easier to buy once the market get’s flooded with listings from panicking mom and pop investors trying to save some of their retirement money by selling asap, causing a massive correction like we’ve never seen before.

By: Joshua Oberon

Joshua Oberon — Thu, 02 Mar 2023 22:07:14 +0000

Smart column, thanks. Consider also that “price stagnation and higher wages working together” is the ideal, and we’ll need to wait and see if wages can actually experience an upward movement to the extent needed. Wage growth will have to be substantial, and expectations of a sluggish economy in future quarters may defer this a bit. Oh, and lest we forget, robust immigration bogeys will add no small headwind for wage growth – a lot of new folks to assimilate into a less than robust economy perhaps. Good luck!

By: Average Man

Average Man — Thu, 02 Mar 2023 22:06:21 +0000

In reply to Ray. It's almost like prices would have to drop...

By: Bout Ngor Bout

Bout Ngor Bout — Thu, 02 Mar 2023 21:37:07 +0000

I’m clever because I’m just listening three years almost

By: Ray

Ray — Thu, 02 Mar 2023 21:02:26 +0000

With higher rates and stress tests put on top. Hardly anyone will qualify for a 7% to 8 % mortgage.
Either by unaffordabilty or ability to qualify. Many are screwed