Comments on: Canadian Real Estate Market Entered Bear Territory, Expect It To Get Worse: BMO

By: Robert Miele

Robert Miele — Tue, 30 Aug 2022 01:42:58 +0000

Economy will crash in late September .If your deals aren’t closed by then people will walk .There may be many rent to buy deals for first timers to get a down payment and buy at a later date .Depending on a motivated owner

By: RW

RW — Mon, 29 Aug 2022 16:34:04 +0000

In reply to Zabra Dezuru. It's literally the opposite. They're removing their state-injected liquidity that was suppressing rates, and the market is now determining the price of interest. Variable rates are supposed to be in line with market expectations. They weren't because Tiff was comfortable setting a trap for the public. State intervention is what breaks the market.

By: Edward HC Graydon

Edward HC Graydon — Thu, 25 Aug 2022 20:24:55 +0000

A bear market occurs when a market experiences prolonged price declines. “It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment,” writes Investopedia.

By: Michael

Michael — Thu, 25 Aug 2022 18:14:04 +0000

I sold my homes in Nov. 2021, I knew after inflation started picking up that the BoC would have to raise rates and match our Southern Neighbours. Interest rates aren’t coming down in the next four to six years as the BoC would have to bring down inflation rates, I don’t see that happening unless the the BoC raises rates to 9.5% atleast at our current 7.6% inflation rate. Winter is coming and energy demand will rise & OPEC+ pushing prices higher, probably pushing inflation even higher. Ladies and Gentlemen it was an awesome 25 years in the real estate industry. See you in 2026. Now it’s time to invest in hard money. Don’t let your cash evaporate in thin air.

By: Edward

Edward — Thu, 25 Aug 2022 16:16:54 +0000

The million dollar question (or in much of Canada, the multi million dollar question), is when the BofC re-stimulates.

By now it should be clear that although supply plays a role, the overwhelming driving force behind home prices in Canada is the central bank. When rates are low or falling, prices rise… when rates are rising they fall. This is because 1) relative affordability function based on the cost of debt, but primarily because 2) INVESTOR DEMAND… this is they key… when rates are falling (or below inflation), capital flows into houses, increasing demand, increasing prices.

Not many places in Canada provide cash flowing real estate.. investors enter the market counting on appreciation. At this point in the game the central bank essentially controls the market. Let’s see how long they allow home prices to fall before they think “oh shoot, GDP is contracting, we need to pump this sector again”

By: Mark O'Neill

Mark O'Neill — Wed, 24 Aug 2022 19:10:18 +0000

It’s telling that the banks and the Real Estate Boards describe the situation as about to get ‘worse’ when, in fact, it will be much BETTER from the perspective of previously priced out buyers.

By: J

Wed, 24 Aug 2022 17:10:17 +0000

Queue the RE bulls comments of “400k new immigrants next year” blah blah.

I’m sorry, but people will think twice before coming here to pay 500k for a studio.
The greatest bubble ever is deflating – in six months, it will collapse as the onion layers of leverage is peeled away.

By: Zabra Dezuru

Zabra Dezuru — Wed, 24 Aug 2022 16:49:16 +0000

The Bank of Canada CAN NOT allow this and should lower rates immediately.

The government should create a homeowner recovery benefit since they are messing with interest rates and causing this.

By: V

Wed, 24 Aug 2022 05:18:00 +0000

Shouldn’t have been borrowing 100k from mommy and daddy to buy a house. Ooops!