There are a lot of homebuyers on the sidelines, seller prices need to adjust to factor in the new interest rates, the spike in food, utility and living prices. People are ready to buy, but prices still reflect the pandemic days of low interest rates, free money, and more affordable cost of living. A correction is coming this year.
It's as I thought. Investor demand is gone. No more short term gains are visible. Investors are not buying, but most are also not selling, yet. I know a lot of investor landlords who are having multiple difficulties. Empty units because asking rent isn't attainable. Derilec tenants. Tenants not paying due to pending RTB hearings. And of course, refinancing sticker shock. I see inventory climbing in Langley. The coming months should be interesting.
Answer me this. With Canada’s national debt doubling since Trudeau came to power, that plus the elevated interest rates which will result in much much higher debt service payments which can only result in either higher taxes or reduced services. Throw in the end consumer who is already challenged with their own debt servicing issues plus the elevated cost of living and just getting by, and you have a consumer that is tapped out and begging for mercy. I don’t see this ending well.
Pressures are accumulating in the economy and we don't know where it will burst. The real estate market is the largest wealth accumulation available to a common citizen. Of course, everyone's eyes are on the real estate. But, I do not think prices will fall, but it depends on how you look at it. If prices stagnate, that is effectively a falling price because of inflation if nothing else. If prices grow matching the inflation rate, now THAT is the real stagnation. And maybe this "backward stagnation" is happening, but rest assured it will jump up quickly after a while. I just recently looked at some home prices in Kelowna BC, and for example, a house I was looking at cost 55.000 back in 2003, brand new. The same house was sold for 360.00 just 2-3 years later. Then it stagnated in price for a while and eventually was sold 14 years after for 630.000. So it took 14 years to barely double in price. But then after that, it took only 3 years and it was sold for 1.15 million. I've tracked some other properties, and condos in South Surrey BC... one property was built in 1997 and was sold for 96k I believe. Then was sold almost double after 10 years, then the 2007-2008 crash happened, and after that it stagnated around 200k for a good 10 years. Finally was sold in 2015 for 211k, and then in 2016 summer was sold for 350k. There are many examples like this. I believe things will ramp up but we are probably looking at a 5-7 year very slow movement upward, if any. However, I think in 2035 we will see everything doubling again.
Steve sneezed so interest rates are going up.
I thought it was if Tiff sees his shadow?
There are a lot of homebuyers on the sidelines, seller prices need to adjust to factor in the new interest rates, the spike in food, utility and living prices. People are ready to buy, but prices still reflect the pandemic days of low interest rates, free money, and more affordable cost of living. A correction is coming this year.
It's as I thought.
Investor demand is gone. No more short term gains are visible.
Investors are not buying, but most are also not selling, yet.
I know a lot of investor landlords who are having multiple difficulties.
Empty units because asking rent isn't attainable.
Derilec tenants.
Tenants not paying due to pending RTB hearings.
And of course, refinancing sticker shock.
I see inventory climbing in Langley.
The coming months should be interesting.
Or super boring.
Middle class can no longer afford a home.
Maybe there is just less of them?
Answer me this. With Canada’s national debt doubling since Trudeau came to power, that plus the elevated interest rates which will result in much much higher debt service payments which can only result in either higher taxes or reduced services. Throw in the end consumer who is already challenged with their own debt servicing issues plus the elevated cost of living and just getting by, and you have a consumer that is tapped out and begging for mercy. I don’t see this ending well.
Pressures are accumulating in the economy and we don't know where it will burst. The real estate market is the largest wealth accumulation available to a common citizen. Of course, everyone's eyes are on the real estate. But, I do not think prices will fall, but it depends on how you look at it. If prices stagnate, that is effectively a falling price because of inflation if nothing else. If prices grow matching the inflation rate, now THAT is the real stagnation. And maybe this "backward stagnation" is happening, but rest assured it will jump up quickly after a while. I just recently looked at some home prices in Kelowna BC, and for example, a house I was looking at cost 55.000 back in 2003, brand new. The same house was sold for 360.00 just 2-3 years later. Then it stagnated in price for a while and eventually was sold 14 years after for 630.000. So it took 14 years to barely double in price. But then after that, it took only 3 years and it was sold for 1.15 million. I've tracked some other properties, and condos in South Surrey BC... one property was built in 1997 and was sold for 96k I believe. Then was sold almost double after 10 years, then the 2007-2008 crash happened, and after that it stagnated around 200k for a good 10 years. Finally was sold in 2015 for 211k, and then in 2016 summer was sold for 350k. There are many examples like this. I believe things will ramp up but we are probably looking at a 5-7 year very slow movement upward, if any. However, I think in 2035 we will see everything doubling again.
Baggies gonna baggie
Unprofessional sneeze. No longer hiring you
Did you ever hire me? #ProfessionalsDontSneeze
Interest rates will go up because of Trudeaus carbon tax. Or atleast wont be going down anytime soon
Oh Trudy....