Comments on: Canadian Real Estate Prices Get Another Forecast Revision Lower From RBC

By: J

Wed, 31 Aug 2022 17:55:42 +0000

They’re expecting a lot of capital to flow into North America from Europe and Asia – but the entire world is inflating. Interest rates aren’t coming down for a good few years (3-5 years) unless the BoC wants to devalue the CAD for more exports.

If they do achieve the mythical soft landing of a space shuttle on a carrier deck, the bottom would be 3-4 years. How far down will prices go? best guess is 43% +/- 3 (pulling numbers out of my ass here).

By: dave frazer

dave frazer — Wed, 31 Aug 2022 16:40:21 +0000

Another doward revision by another bank. They are just guessing, no one really knows where the bottom will be , or they would not be constantly revising forecasts. Its a case of wait and see. Bottom might be spring 2023 if propertys starts to sell, but its unlikely to be in 2022. The market might fall a long way before then and if it does not move in spring 2023 expect another drop.

By: the Canadian Lynx

the Canadian Lynx — Wed, 31 Aug 2022 14:44:34 +0000

imho: The real estate prices are still high in Victoria and Sydney, on Vancouver Island. A lot of highend luxury homes are for sale in Victoria, Oak Bay, and other areas. Very few condos are under $500K, and of them, most were built in 1978 or 1980’s. Sellers are still trying to capitalize on the unusual price run-up during the pandemic. I don’t see any “distress” sellers out there. Not yet, anyway.

There’s a nice floating home in the shape of a boat, for sale, in Victoria West or Esquimalt. I think they reduced it to under $250K. It’s an alternative living type of home, and the least expensive on the MLS for that type of living-on-the-water-home.

By: Yoroshiku

Yoroshiku — Tue, 30 Aug 2022 17:51:59 +0000

More than a few GTA real estate owners trying to sell right now are in some denial about what’s happening to real estate prices. Some are expecting bidding wars to begin anew any day now.

By: GTA Landlord

GTA Landlord — Mon, 29 Aug 2022 16:44:25 +0000

Rents are trying to rush and capture the payments, as they try to keep up with inflation. Most people don’t understand they’re rushing into renting an expensive place that will see their peers leave to more attractive spaces soon.

By: GTA Landlord

GTA Landlord — Mon, 29 Aug 2022 16:42:22 +0000

In reply to RW. It is delightful to see random companies like NarCity trying to capitalize on this area like they have a clue. Here's the best place to buy fried butter, but also insolvencies are down. Like a NarCity journalist could even explain the insolvency process. haha.

By: Trader Jim

Trader Jim — Mon, 29 Aug 2022 16:40:22 +0000

IFRS-9 standards are intentionally vague so they can tell investors one thing while on the institutional side they tell them the downside is more likely.

In theory it sounds great. In reality, how do they model the RWA for a 50-50 probability? Is getting punched in the face a 50-50 issue (you get punched or don’t), or is the fact almost no one is likely to punch you make it a 0.0009% chance of happening? No real standards, which is why you need to contrast it with their outside statements from management.

By: RW

RW — Mon, 29 Aug 2022 16:36:45 +0000

The worst case scenario: Because society would collapse if banks told you what they’re actually telling their wealthiest clients. Good on Better Dwelling for publishing their institutional commentary. It’s always two different pictures, and I noticed you put a fire under other media orgs to start sharing those comments too.