[Video] How Long Will The Canadian Real Estate Correction Last, With BMO Senior Economist Robert Kavcic
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Does anyone believe they’re raising interest rates so they can lower them soon after. This is here to stay and they’ve finally killed the housing market. It needs to correct by 50% in Canada for people to buy again.
Folks, what are you complaining about? what did you think? things are going to be going your way all the time? everyone takes their turn, good or bad. It’s part of the cycle, lot of people want to see house prices to go down (including me), ok it goes down but interest rate is too high, prices are up everywhere, now what? The question is always about resiliency or tolerance level. Did you build enough to weather the storms? Don’t try to put all the blame on somebody else because YOU make your own choices (good or bad). I think it’s going to get worst because of the pandemic, the printing of money, the ukraine/russia war, supply chain, and people attitude of need to spend spend spend because they got so tired of staying home for 2.5 yrs at home and with that guess what, people flood the economy with more money and don’t ‘care’ attitude because it’s about me, me, me. Well, too bad because when you have a hot economy and at the same time inflation going through the roof then the ‘only’ measure that boc is using is higher interest rate. They have no choice as they are against bigger forces and that is why I think they will need to raise the interest rate way more, otherwise there is a risk of stagflation even if they know that this might create a recession. They want you to save but you are not:)
More, No idea how people are going to keep their houses when mortgage renewal knocks on their doors, again in everything, some will gain, some will lose, you can complain as much as you want, housing this, housing that, homeless this, homeless that, prices this, prices that. Again it’s about the resiliency or tolerance level of your household and the choices you made…buckle up people!
If lenders start cross checking income reported during mortgage application with CRA the housing will fix itself.
If some regularity body looks into mortgage files approved by banks in last two years, the truth will come out and rationality will prevail.
The most insightful discussion that I have heard so far. It naturally overlays with my assertions formed earlier in Q3.2020 during the height of free money distribution hysteria. If anyone listens to the discussion carefully, there are a few essential cues for the listeners to position themselves properly for the days ahead. The interview was nicely done, no doubt.