Comments on: Canadian Real Estate Prices To See An “Unprecedented Decline”: TD

By: Bsm

Bsm — Tue, 06 Sep 2022 00:37:16 +0000

My learnings so far from media….
Reasons for increase in real estate prices
First low interest rates.
Second people wanted bigger homes for work from home option
Third it was supply demand of real estate property
Fourth, General understanding is to Buy a home now because price will keep increasing and you will not be able to buy it.
Once the gas runs out and the BOC woken up, interest rates raised, prices corrected, now advidors in media are encouraging to get money from parents to buy home.
Financial institutions forecasting drop in prices…

People/investors had more money to buy homes they chased the property for quick gain and not for living, I could still see lot of dark empty houses which are kept away from hard working people to buy it at reasonable prices.

What next??? Let’s wait and watch.

By: Waqas

Waqas — Sat, 03 Sep 2022 22:06:15 +0000

In reply to Ron Bruce.

It doesn’t scare investors away. In fact it’s a better opportunity for investors. Foreign investors usually buy on cash so the interest rates are meaningless.
A recession lasts 12-18 months and it’s an opportunity for them to get a 50% return in 18 months.
Golden opportunity for the rich (as always)

By: Pink Unicorne

Pink Unicorne — Thu, 01 Sep 2022 20:17:15 +0000

In reply to Ike. Look at a map with population density. Canada is a small country with a vast uninhabitable hinterland with a real estate addiction and ageing problem. It's like getting bone cancer after a cerebral palsy as a kind of terminal condition buy 1 get 1 free.

By: Dman

Dman — Thu, 01 Sep 2022 17:46:17 +0000

But It’s Just Recalibration. Unless you bought in January. I talked to a banker the other day. They are calling variable mortgages in to tell them it will be 65 years to pay off unless they increase payment.

By: Bob

Bob — Thu, 01 Sep 2022 15:33:02 +0000

it’s so funny to hear about housing shortage, when a lot of so called investors, in huge debt, but owning 3,4,5 properties and screaming about that shortage, hopefully BOC soon enough raise rate to 7 or 8% to correct inflation and after those investors will sell properties for any costs and housing market will automatically improve inventory, will be no shortage.

By: Ike

Ike — Thu, 01 Sep 2022 10:07:57 +0000

Canada is a big country with many real estate markets that differ in their supply and demand situations.

So to generalize the entire country like this just makes me skip the article

By: Shandawg

Shandawg — Wed, 31 Aug 2022 21:43:10 +0000

In reply to Ron Bruce. Could it be we will see a mass exodus from investor havens like BC, Ontario? As all the gold has been picked ?

By: Ron Bruce

Ron Bruce — Wed, 31 Aug 2022 20:52:02 +0000

If you’re moving foreign money into Vancouver and Toronto real estate, there was a promise of significant returns on investment. So are interest rates scaring investors away, or has the hype faded and forced the Canadian taxpayer into finding affordable housing/rent? Warehousing citizens is Canada’s new economy. Innovation, intellectual property and new disruptive technologies to compete on the global stage are far behind the warehousing of people.

By: Cory D

Cory D — Wed, 31 Aug 2022 17:11:37 +0000

Haven’t prices already dropped 22% since Q1 2022? Why are they “predicting” something that’s already happened?

By: PB walleye

PB walleye — Wed, 31 Aug 2022 16:20:32 +0000

The Bank is wrong. Expect a correction greater than 25%, price drop. Interest rate’s normalizing at 5-7%. Will significantly change the correction. Canada hasn’t seen 5-7% rates since 2008 (14 years). Expect ( opinion), 50% crash in sales, prices by 2025. The market will decide.