Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Colleen Rose Mccaffery’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Colleen.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@johnnycroatyes, they’re clearly being deeply sarcastic. That was the first thing I thought of as well when Steve mentioned the increased amortization, just another tailwind for housing prices. No supply, just demand. You need to sort out the supply imbalance to bring prices down alongside keeping rates positive.
Japan did this. Why let the kids who grew up in the home get off scot free? They should own part of that mortgage when they come of age, as well as the grandchildren and great-grandchildren.
Its amazing to me is how fast the fertility rate is dropping in countries with expensive realeatate. Asian nations like japan , korea and china are beyond the point of no return. The same in canada with immigration driving all population growth. The future is not bright here.
"Historic zoning changes could transform B.C.’s housing landscape" 😂 As an Investor why would I commit to buying in a province with such uncertainty atm. We just got out of Kelowna in time last year having owned a micro apartment on Leon Ave for 5 yrs. Kelowna City Council doesn't have a clue 😂 And seriously $800,000 for a 1 bed 1 bath please ,that's more expensive than my hometown of London UK ffs 😂
@@edwardhudson9851 Oh, lovely. Waaay more bang for your buck. We also sold our bubble house in the Fraser Valley and are currently renting on White Rock beach.
Bring the whole planet here within the next 5 years, I’m sure that will work out, it’s been great so far. Did your life quality improve since 2015? That’s what I thought…
MLS today are basically filled with over confident home owners who think they can charge more as rate cuts are around the corner. That’s why they are not selling. On the other hand, new homes from developers are more often to see good pricing as homes on their books must go
Canadian real estate is priced as if it were still a cash cow for speculators. Those days are done, because politicians have finally figured out that unfordable housing will destroy them politically. So now it's a slow march down or it could even drop off quick if enough speculators cash out at the same time. If you think real estate will continue to inflate, you need to wake up to reality.
Real estate and assets will keep going up because the value of money will keep going down. It’s like the Dow and S&P 500. There will always be corrections but the trend is up because the money supply always goes up. Money always needs to find a home.
@@Observer168Canadian real estate is no longer a good home for money. Smart money is moving out and will continue to find better homes where it will increase in value not just nominal price.
@@Jo-mf2vu that’s not what’s happening. $43 billion got moved into Canada in 2021 just from Hong Kong. Canada is a extremely safe place to park assets.
@@Observer168 Your right. People looked for places to park money in hard assets. Canada was targeted because it is considered a solid democracy and it's become famous for looking the other way. Canada has declined very rapidly on many many levels very rapidly. There are many other countries that are now a better choice. Besides, people started placing money in hard assets at the onset of covid because everyone was scared where currencies would go. Once the global downturn is over, people are going to want there money working for them, not sitting in a SFH in Ontario.
The US added 303,000 jobs last month - this will delay any rate cut on both sides of the border. I visit my mom monthly in Kits from California and Canada is becoming more of a two tiered society even more so than down here in the US. I visit Courtenay where I used to live and am appalled at the homelessness in this rural area. It is like a mini 6th street in LA. Oh Canada, what have you done - real estate should not be 20% of the GDP.
I thought it was 30% lol The homeless situation is very bad across the country. Towns like Peterborough, Thunder Bay, Timmins, Sault-saint Marie and Kenora are at their worst levels as well.
good, I'm glad they're favoring renters, If the greedy and fomo driven buyers hadn't paid so much for housing, renters wouldn't have to pay insane amounts to have a roof over their head. A lot of renters are being and have been illegally evicted by scummy greedy landlords too. Homes should be for families, not for making someone else wealthy.
@@Observer168 yea cause they all come here and corrupt with cash no tax jobs. I know how they all do it I own construction company believe me I won’t say who or what but most of them are white collar criminals . Google it Canada has the most laundered money why you think they come here
@@Observer168 Yup, i have seen rich foreignors are able to buy a house in canada wife and kids living in the house, dont even work on learning English, big homes and if it came with a pool the water is dirty and green
Walk around downtown Vancouver or anywhere nearby today. Small businesses have been killed off, homeless people and drug addicts all over the place. Who in the hell wants to pay a heavy premium on a property to be around that? There are many reasons that area hasn't rebounded.
@@Observer168- What’s your solution? Hyperinflation? Pay 2 mil for a shed? Inflation WILL destroy Canada, make no mistake about it. High interest rates are the medicine. Welcome to normality.
I live in a Vancouver suburb. I’m 2021, my wife and I went downtown for dinner. Our car had its window broke and someone stole our dog toys. Because I have a Tesla, I had footage of them circling my car and breaking the window. I made a police report and sent to footage to VPD. Been 3 years and no one’s got back to me.
Prices are way too high and low rates for too long made average income earnersact like they were millionaires. Average rates now are changing the market.
@@Observer168 You keep using that word (“affordable “), I do not think it means, what you think it means. 3-4x’s gross income is affordable or 25-30% of net income for housing payment, not 90%. Currently in those “cheaper places”, it’s still way to elevated to 7-8 times gross income.
Steve is disheartened because housing has ceased to be an asset for speculation. My main gripe with him is his facade of empathy towards the buyers, as if he’s experiencing the same level of distress. However, his true intent surfaces when he subtly promotes fear of missing out (FOMO) and speculation. This can be characterized as a form of passive aggression.
No one needs to be a landlord, they took the risk and lost. Too bad too sad. Maybe prices would be more realistic if these " investors" didnt scoop up multiple properties at sub 2% loans using equity from their other properties. Pure greed. Other countries are laughing at us. Vancouver is nice but its not a ny, london etc
When your nation is a joke ofcourse ppl are going to laugh at you. Canada is a joke. It would also be nice if ppl had other ways to make some more money other then housing. Say like kind to business start ups', the entrepreneur spirit, and investing in markets etc. Its not so much greed as it is pure ignorance and Canadian culture bent so heavily towards housing as a means to make a few Canadian pesos
Do you even understand what you’re saying? You understand that to build anything substantial requires speculative money to even put a shovel in the ground?
No one needs to be a tenant. Get a job and buy your own house. I would be very happy if all the rental supply disappears, too bad only part of it will be turned back into single family. It's funny that the socialists are either poor or trust fund babies like the political leaders, never normal working people who support themselves.
I was recently in Melbourne and Sydney, Australia - no serious homeless problem that I could see in the downtowns. Canada (and coastal BC in particular) is a country whose left-wing electorate has undermined the stability of the country and utterly undermined the middle class. I believe that because debt and money printing is so high in Canada, and has no end in sight, Canada is only going to get worse. A lot of people are going to leave Canada, and Vancouver more than most cities. The grotesquely high levels of over migration into Canada are another policy of the left that is destroying Canada.
Foreign capital investment, or lack of, rules all. Everything else that happens is a trickle effect of it. If there is no confidence in the global financial community that canada has a positive future and is a good place to do business, then foreign investment will continue downward. Bonds will become increasingly hard to sell as who wants to invest in a dead country. Everyone wanted to sink their money into hard assets at the onset of covid. Canada has a stable democracy and loose laws, this made Canadian RE a very desirable hard asset on a global scale. As Canada's economic problems come home to roost and our economy and living conditions deteriorate it becomes less desirable for people to park their money in Canadian RE. Once the global economy is out of this and on the rise, the money parked in Canadian RE will be liquidated to move to productive assets. That's why in the inflation/recession cycle RE continues downward for 2 years after the first rate cut. I used to charge for this kind of info, but I'm old now and I just don't care. Peace and love.
It so funny! They keep talking about RE investors issues and renters getting more power when the fact is that any Joe out there could borrow free money until recently, could go out into the RE market and buy multiple RE investments. And, this person/entity would be called a bonafide RE investor . What a joke! Such so called RE investors gamed the system, the system allowed them to borrow at NO cost , plus allowed them to fund investments with almost zero skin in the game , making use of loop holes such funding from HELOCK to fund multiple investment. Until recently, even a Uber driver In the GTA was a RE investor, buying multiple homes with over leveraged loans that the banks allowed with no due diligence. Time for such RE investors to own up to their greed and poor financial decision making!
Because that's how the bank makes money. Those loans are covered 18 ways from Tuesday, so the bank rarely, if ever, loses on the deal. Thus they continue.
@@saretsky Is it almost non existent tho? Maybe not buying a full home to rent the whole thing. But as an electrician I have worked in north van and seen quite a few people who bought homes to live in/rent out a portion all as a stepping stone to buy another home with the equity later. I had a long conversation with a young guy, 27, from the island who did the same thing there and then moved to N.van to do it all over. While I would agree its not the majority its not "nonexistent"
High demand from both domestic and international buyers, limited housing supply due to geographical constraints, and speculative investment have contributed to making real estate in Vancouver unaffordable. Anyone who focuses on only one variable is clueless.
People think developers have hundreds of millions of dollars just sitting in their back pocket. Without investors a lot of these bigger projects won’t even get off the ground. Making a bad situation, even worse.
Mass unemployment,unaffordability, destitution, drug addicts, criminal gangs will soon mean RE prices all over Canada, especially big cities, would go down the drain.
Rate Cuts to please debtors and real estate agents will cause hyperinflation for food and everything. Your eyes will tell you that inflation is not going down....We have gas back to $2.10 a litre in the lower mainland.
If I was a seller, I’d be selling privately and totally avoiding realtor commission, or negotiating less commission. The amount of commission being paid is unrealistic for selling non productive assets for a countries GDP which is just creating historic amounts of debt that’s not going to be ever repaid. Pricing a house is actually hard?? Wtf. Try working outside all winter long in -30 degree weather. What a softy. It’s probably “hard” because all true value of houses has been lost in the wind. And it’s the speculators fault. Realtors get 0 sympathy. Let’s bring it back to reality and use houses as a place to live and raise your own equity instead of other people trying to rent out for passive income. Do that with other investments that don’t affect the economy in a negative way. Can’t believe the stupidity out there. How did people ever survive from the 50s-90s without half the population being landlords????? Omg were doomed without landlords. We need More lords of the land!!!
There is a lot of factors to consider - Money laundering - Over estimated values - Foreign investment - Inflation - Mortgage rate hikes - Immigration - Solutions in use currently... Multi Generational Home ownership - Not selling to pass down in family - Co-Ownership but Single Income ownership will likely end up foreclosing which will hurt economy but open up market.
I also don't believe rates will decline significantly. When my parents bought the family home in 1958, rate of inflation was about 3%. Rate of mortgage was 6.25%. Now, rate of inflation is about 3% and mortgages are about 5.7%. If rates go lower, money for mortgages will dry up. If they go higher, fewer will be willing to borrow. Right now, we are in the period of adjustment where we become accustomed to this new reality. In a while if rates stay the same, some prices will be lowered, some people will find innovative ways to qualify, and the market and our perceptions will then have been 'adjusted'.
Didn't you say for years the math doesn't work with 8 rate hikes in 2022? If the math doesn't work - how is it possible that rates can remain this elevated?
It is. You have to qualify for 7.25, and there are quite a lot of people whose income is less dispensible now with all the inflation and cost of living. So 5.25% in 2020 is not the same as 5.25% in 2024. Hell, in 1990 those 5.25% would be far better than now, in terms of affordability.
@@BellaBella-jw9ef The house costs as much as the materials and labor, land, and the developer's profit. I've recently purchased a brand new house and I can tell you the construction cost was around 550k for a 3000sq ft house. That is the official expenses form, listed on a government website. On top of that, you have land that is 430k or so. So that is almost 1 million, but on top of that you have developers' profit, around 25%, and on top of that you have GST and transfer tax. This house in particular cost 1.25 million. Can you make it for less? Yes. You make a bit smaller house, a bit smaller lot, a bit cheaper materials, but you'll still get to 1 million easily. And this is West Kelowna, not even Vancouver or any other major area. The problem is that EVERYTHING is up, except salaries. The whole economy sucks. Houses can no longer be made for cheap, and guess what, every house you see is on average lasting up to 50 years, some even less and very few more. This by definition means the entire city will be replaced in 100 years easily more than once. House prices ain't going down, ever. Forget about that. At best, they will stagnate for a while, but in 10 years I guarantee you all of them will go up. My prediction is that there will be stagnation for a few years and then maybe in 2028 to 2030 you'll see a sudden jump again, just like it was in 2016.
Steve is disheartened because housing has ceased to be an asset for speculation. My main gripe with him is his facade of empathy towards the buyers, as if he’s experiencing the same level of distress. However, his true intent surfaces when he subtly promotes fear of missing out (FOMO) and speculation. This can be characterized as a form of passive aggression.
Investors are loosing money and home value every month. Take a hit and sleep better. The rates are never going down to 1%. Get a tenant which does not move or stops paying and you are loosing even more 😢
imagine being a Canadian housing bull into this. lol. The loonie close to becoming a .50c rate. you can still buy in mexico for a decent deal. Argentina much better for your $$
@@Observer168 Unlike Singapore's 734 sq km and HK's 1100 sq km Canada has 10,000.000 sq km and is not running out of land. Also both those cities push the filthy poor and workers outside the borders. They are gated communities, not countries.
@@Chris-xc1tmpointless talking about Canada’s area when most of it’s population is concentrated in a few cities. Everyone wants to be in Vancouver and Toronto.
This was a post I made on December 9th when the media was hyping a spring market and rate cuts. Tom Storey's channel. "I think you should still come out with a prediction anyways. My current call is double digit unemployment. I think sellers hold off on price reductions if they expect future cuts. However this will lead to increased inventory. New builds being completed will also be adding to supply at the same time. Once we get official hard landing headlines, sellers and speculators will try to front run each other. With all the inventory it should help prices come down. Once that inventory is absorbed, we go back to supply shortages as no one is applying for permits. There will be some prime opportunities coming up for those sitting on cash. The higher the unemployment rate is, the better the opportunity to buy." Inventory is going to rise as new listings sit. If rates aren't cut like many sellers are anticipating, then that will also sour sentiment.
@@HaydonAshurstFamily Agree. Our family is looking for SFD. There is significantly less inv avail now compared to when we were looking 4Q23 and 1Q24. Most avail SFD we've viewed are from families moving out of Metro or out of province. Everyone else prefers to stay put with their low rate mortgages.
there are no builders building cheaper anywhere in Canada? right. Builders will stop building and change careers? right... It's like I wake up tomorrow and decide i'm underpaid and stay home lol
@3:15 just follow the 'experts' right Steve? RE agents are totally trustworthy and have never pumped the market. No one is left holding the bag, and we should get five cuts just like you said.
I like that you are cautious with your commetary and projections, Steve. I acquiesce. Rates will come down, but nobody really knows when...next year perhaps?
While disinflation might give a little room tp the BoC in the short term, rising commodity prices (and a stronger USD) will keep inflation uncomfortably high. You are right, Steve, that this isn't fully in Canada's control. But that's what happens when you burn all your buffer on stupid policy. Plus, layoffs. That is the last lag to come around. It could get stagflationary real quick. Bottom line, too much risk in RE. Gold, however ;)
The sell off at the coast has destroyed the Okanagan and surrounding areas. All the way into Alberta now. This is pretty bad. Use to live in east courtenay in the 90's god help me if I ever see, there's nothing left. The south Okanagan I couldn't sell out of here fast enough.
In my view the recent Gov't regulatory proposals, inclusive of rent controls/zoning etc., if nothing else ? should offer a very late cycle wake up call for any remaining investor based 'normalcy bias' in returning rate cut fueled activity supportive of valuations..... as DEBT/leverage does indeed become the enemy into Financial conditions. And while simple supply/demand issues may sustain SFD market valuations substantiated by the rapidly accelerating wealth inequality shorter term..... without viable/stable entry level Real Estate/wage dynamics facilitative of 'moving up' over time.... coupled with aging demographics.... I would suggest that beyond the typically paid off legacy/family successorship SFD transfers somewhat immune to Financial conditions ..... that the potential for the still "leveraged" SFD valuations to deflate over time is growing.
Prices won’t go down much and will rebound, mortgage payers can’t afford to lose large sums. Higher prices are here to stay especially for single homes
Regulatory relapse back into allowance of 30 year Mortgage amortizations stimulative to Real Estate valuation levels.... at this juncture..... would represent a significant and completely unacceptable potential for further financial system risk as actuarial assumptions are recalculated. Akin to merely 'kicking the can' down the road once again.... let's just say that the inflationary pressures in further debasement based DEBT instrument growth resurgence potential, merely applying now "Duct Tape" on top of prior band-aides battling "symptoms".... is alarming to say the least ! In Canada... we have a DEBT bubble pervasive into all asset classes now predicated in viable remediation by Monetary Policy efforts.... entirely upon maintenance of currency valuation into demand destruction... unfortunately a severe recession... and an extremely painful/extended deleveraging cycle. Without which..... and this is a really big IF.... an outright Financial Crisis can be avoided as increasing Gov't Fiscal policy pressures exacerbate BoC Monetary Policy efforts ? Buckle up.... ! .
No rate cuts coming this year and you got to be crazy to buy at current prices. Invest in Seattle and get better returns in USD while CAD goes down further.
Pricing RE in Canada, is based on emotions and is not based on true demand and supply. add to it realtors wanting to pump up the RE prices for better commissions, it is completely rigged. You really don't know what you have paid for or whether the house is even worth the price. If one were to do costing of the material and land on which a house is built, you realise you are paying 10 to 15 times more the cost of the build.
They are going to lose what’s left of their support if they introduce longer amortizations. Just absolutely crazy to try and stoke demand right now. All it results in is even higher pieces and more debt. Most inept government of all time.
The cost of living is even more expensive with high interest rates. Rents have skyrocketed since the rate hikes and now people are losing their jobs which makes things even more unaffordable.
Bond yields are moving with oil. If oil continues up, so should yields. Gold started front running the next leg up in commodities (as it does) a while back and by extension, more inflation on the way.
Don’t expect anything else other then maybe .5 % drop in interest rate for maybe 6 months June to December due to Us election otherwise it will be where it is now or higher
We thought we would sell now in the spring... not happening. I wouldn't know first what to do with the money except buy something again. Put it in GIC? I don't have a feeling this would be better either. So we are just going to eat the cost of this stagnation and high interest rates.
An extra 5 years on the loan won’t help much. 5 cuts from BoC?…LOL!!!! The solution is a correction and a correction is coming… this can’t keep going on forever.
You don’t understand the concept of fiat currency. Value of money goes down so assets like homes will keep getting more expensive. Nobody holds cash because it loses value.
There is NO REASON for there to even be an amortization period. I'm glad we're finally heading in to a situation that will ultimately remove the cap. It is not needed.
What are the benefits of living in downtown Vancouver.Its a serious question coming from a born & Bred Sth Londoner (UK) & perm resident of Canada thankfully:0]
Steve has a very advanced understanding of economics. His understanding of economics and his application of it in these videos surpasses even his Real Estate knowledge.
5 and 6 percent interest rates ARE NOT HIGH. This is still traditionally low. A bond should have a yield of about 6-7 percent minimum which means mortgage rates should be about 8-10%. That would be normal and healthy.
$43 billion was moved in Canada from just Hong Kong in 2021. Any stats on how much money gets moved into Canada each year? Capital flows out of Hong Kong banks reaching Canada rose to their highest levels on record last year, with about C$43.6 billion in electronic funds transfers (EFT) recorded by FINTRAC, Canada’s anti-money laundering agency, which receives reports on transfers above C$10,000.
It’s peaked and Canada has stopped posting data on how much money is flowing in. The M2 money supply is at historic highs so it’s a good indicator for how much money is available. M1 and M2 money are the two mostly commonly used definitions of money. M1 = coins and currency in circulation + checkable (demand) deposit + traveler's checks + saving deposits. M2 = M1 + money market funds + certificates of deposit + other time deposits.
Kiss goodbye to high prices specially in Vancouver. The Chinese investor is gone for at least 10 years. Other than the weather Vancouver has not much to offer and for that matter Canada
I think it’s funny how the family house with property is the ideal when most kids are on their iPads or at extracurricular activities. It is a status symbol along with a boat and an RV. Not like that in Europe.
Do real estate agents sell all their properties before SHTF? Maybe you don’t but I can only imagine that anyone with their finger on the pulse would flip first.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Colleen Rose Mccaffery’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Colleen.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Why not just extend mortgage amortizations to 100 years so the average house can go to $4M?
your joking right
@@johnnycroatyes, they’re clearly being deeply sarcastic. That was the first thing I thought of as well when Steve mentioned the increased amortization, just another tailwind for housing prices. No supply, just demand. You need to sort out the supply imbalance to bring prices down alongside keeping rates positive.
Japan did this. Why let the kids who grew up in the home get off scot free? They should own part of that mortgage when they come of age, as well as the grandchildren and great-grandchildren.
@@sakiracadman5673 Sure lets indenture future generations. Makes sense to me. Not
@@Prairieshutterbug64 when it comes to politics, there is only money.
Its amazing to me is how fast the fertility rate is dropping in countries with expensive realeatate. Asian nations like japan , korea and china are beyond the point of no return. The same in canada with immigration driving all population growth. The future is not bright here.
Not at all Martin, not at all bright
"Historic zoning changes could transform B.C.’s housing landscape" 😂
As an Investor why would I commit to buying in a province with such uncertainty atm.
We just got out of Kelowna in time last year having owned a micro apartment on Leon Ave for 5 yrs.
Kelowna City Council doesn't have a clue 😂
And seriously $800,000 for a 1 bed 1 bath please ,that's more expensive than my hometown of London UK ffs 😂
Yes, Kelowna is bloated. You could be in Vancouver… which is also in a bubble but makes more sense.
@@BellaBella-jw9ef We're on the outskirts of Edmonton atm,near the Airport in a fairly new neighborhood overlooking a lovely pond :0]
@@edwardhudson9851 Oh, lovely. Waaay more bang for your buck. We also sold our bubble house in the Fraser Valley and are currently renting on White Rock beach.
Calgary, Edmonton and Winnipeg is still pretty affordable.
@@Observer168Also way shittier than BC.
if BOC cuts rate this year，Canadians then can enjoy Argentina kind life，enjoy plunge of CAD and 50% cpi😊
If only we could elect someone to scrap all the over priced government programs
Bring the whole planet here within the next 5 years, I’m sure that will work out, it’s been great so far. Did your life quality improve since 2015? That’s what I thought…
MLS today are basically filled with over confident home owners who think they can charge more as rate cuts are around the corner. That’s why they are not selling. On the other hand, new homes from developers are more often to see good pricing as homes on their books must go
Any facts about rate cuts coming?
@@Bcdangable nope lol
Home owners assume BOC will lower rate to help out the housing bubble get even bigger 😂😅
Over confident is right. There's a house around the corner that sold 1 year ago for $2M. Today it's back on the market for $2.6M. it's disgusting.
@@Lord_Enwar delusional
This is good news. Let's keep these prices going down until real estate becomes affordable again. And get these investors out of the market.
100 percent agree!
There is some good but there will be trade offs.
Canadian real estate is priced as if it were still a cash cow for speculators. Those days are done, because politicians have finally figured out that unfordable housing will destroy them politically. So now it's a slow march down or it could even drop off quick if enough speculators cash out at the same time. If you think real estate will continue to inflate, you need to wake up to reality.
Real estate and assets will keep going up because the value of money will keep going down. It’s like the Dow and S&P 500. There will always be corrections but the trend is up because the money supply always goes up. Money always needs to find a home.
@@Observer168Canadian real estate is no longer a good home for money. Smart money is moving out and will continue to find better homes where it will increase in value not just nominal price.
@@Jo-mf2vu that’s not what’s happening. $43 billion got moved into Canada in 2021 just from Hong Kong. Canada is a extremely safe place to park assets.
@@Observer1682021 is ancient times. That is before the liquidity got turned off with rate hikes. Start thinking like a modern international investor.
@@Observer168
Your right.
People looked for places to park money in hard assets. Canada was targeted because it is considered a solid democracy and it's become famous for looking the other way.
Canada has declined very rapidly on many many levels very rapidly.
There are many other countries that are now a better choice.
Besides, people started placing money in hard assets at the onset of covid because everyone was scared where currencies would go.
Once the global downturn is over, people are going to want there money working for them, not sitting in a SFH in Ontario.
I won't be happy until trudeau blames the toddlers in Gen Alpha for the housing market.
The US added 303,000 jobs last month - this will delay any rate cut on both sides of the border. I visit my mom monthly in Kits from California and Canada is becoming more of a two tiered society even more so than down here in the US. I visit Courtenay where I used to live and am appalled at the homelessness in this rural area. It is like a mini 6th street in LA. Oh Canada, what have you done - real estate should not be 20% of the GDP.
Agreed I was shocked by how many homeless people I saw in courtenay it is almost as bad as Victoria!
well said.
I thought it was 30% lol
The homeless situation is very bad across the country. Towns like Peterborough, Thunder Bay, Timmins, Sault-saint Marie and Kenora are at their worst levels as well.
lol look at who our leader is, it’s not rocket appliance
California, though.
good, I'm glad they're favoring renters, If the greedy and fomo driven buyers hadn't paid so much for housing, renters wouldn't have to pay insane amounts to have a roof over their head. A lot of renters are being and have been illegally evicted by scummy greedy landlords too. Homes should be for families, not for making someone else wealthy.
I cannot believe house prices are the same they were 2.5 years ago but rates are not 2% they’re 6% I don’t get it
It’s because Canada is a safe haven. Canada is like the British Virgin Islands for foreigner capital where you can immigrate your whole family.
@@Observer168 yea cause they all come here and corrupt with cash no tax jobs. I know how they all do it I own construction company believe me I won’t say who or what but most of them are white collar criminals . Google it Canada has the most laundered money why you think they come here
@@Observer168 Yup, i have seen rich foreignors are able to buy a house in canada wife and kids living in the house, dont even work on learning English, big homes and if it came with a pool the water is dirty and green
@@johnnycroat This is nothing new
Walk around downtown Vancouver or anywhere nearby today. Small businesses have been killed off, homeless people and drug addicts all over the place. Who in the hell wants to pay a heavy premium on a property to be around that? There are many reasons that area hasn't rebounded.
Businesses have been killed thanks to high interest rates. People are losing their jobs thanks to high interest rates.
No it was ko-vid skam@Observer168
@@Observer168- What’s your solution? Hyperinflation? Pay 2 mil for a shed? Inflation WILL destroy Canada, make no mistake about it. High interest rates are the medicine. Welcome to normality.
@@maximusfuscusonly Vancouver and Toronto are expensive cities because they are prime locations. There are plenty of affordable cities in Canada.
I live in a Vancouver suburb. I’m 2021, my wife and I went downtown for dinner. Our car had its window broke and someone stole our dog toys. Because I have a Tesla, I had footage of them circling my car and breaking the window. I made a police report and sent to footage to VPD. Been 3 years and no one’s got back to me.
Prices are way too high and low rates for too long made average income earnersact like they were millionaires. Average rates now are changing the market.
100%
2025 new stress test 4.5 x’s income max lending. That’s the nail in the coffin.
Housing shortage with high inflation. Unfortunately, the prices can’t go down that much..
@@T-Bone.
Housing shortage according to who?
In 2007 there was a housing shortage in the US, but some how the housing market crashed too by 2009.
We only have high prices in areas around Vancouver and Toronto. Most cities in Canada are still very affordable. Winnipeg is extremely affordable.
@@Observer168
You keep using that word (“affordable “), I do not think it means, what you think it means.
3-4x’s gross income is affordable or 25-30% of net income for housing payment, not 90%.
Currently in those “cheaper places”, it’s still way to elevated to 7-8 times gross income.
@8:35 like you weren't causing fomo with your rate cut predictions? I believe you
Steve is disheartened because housing has ceased to be an asset for speculation. My main gripe with him is his facade of empathy towards the buyers, as if he’s experiencing the same level of distress. However, his true intent surfaces when he subtly promotes fear of missing out (FOMO) and speculation. This can be characterized as a form of passive aggression.
@@MR007-r3f lol so much FOMO pumping
No one needs to be a landlord, they took the risk and lost. Too bad too sad. Maybe prices would be more realistic if these " investors" didnt scoop up multiple properties at sub 2% loans using equity from their other properties. Pure greed. Other countries are laughing at us. Vancouver is nice but its not a ny, london etc
When your nation is a joke ofcourse ppl are going to laugh at you. Canada is a joke. It would also be nice if ppl had other ways to make some more money other then housing. Say like kind to business start ups', the entrepreneur spirit, and investing in markets etc. Its not so much greed as it is pure ignorance and Canadian culture bent so heavily towards housing as a means to make a few Canadian pesos
Do you even understand what you’re saying? You understand that to build anything substantial requires speculative money to even put a shovel in the ground?
taxes for everyone is way too high.. everyone is losing.
Vancouver and Toronto are highly desirable places to live. There are affordable cities all over Canada.
No one needs to be a tenant. Get a job and buy your own house. I would be very happy if all the rental supply disappears, too bad only part of it will be turned back into single family. It's funny that the socialists are either poor or trust fund babies like the political leaders, never normal working people who support themselves.
I was recently in Melbourne and Sydney, Australia - no serious homeless problem that I could see in the downtowns. Canada (and coastal BC in particular) is a country whose left-wing electorate has undermined the stability of the country and utterly undermined the middle class. I believe that because debt and money printing is so high in Canada, and has no end in sight, Canada is only going to get worse. A lot of people are going to leave Canada, and Vancouver more than most cities. The grotesquely high levels of over migration into Canada are another policy of the left that is destroying Canada.
Reduce amortization to 20 years until prices decline.
Foreign capital investment, or lack of, rules all. Everything else that happens is a trickle effect of it.
If there is no confidence in the global financial community that canada has a positive future and is a good place to do business, then foreign investment will continue downward. Bonds will become increasingly hard to sell as who wants to invest in a dead country.
Everyone wanted to sink their money into hard assets at the onset of covid. Canada has a stable democracy and loose laws, this made Canadian RE a very desirable hard asset on a global scale.
As Canada's economic problems come home to roost and our economy and living conditions deteriorate it becomes less desirable for people to park their money in Canadian RE.
Once the global economy is out of this and on the rise, the money parked in Canadian RE will be liquidated to move to productive assets.
That's why in the inflation/recession cycle RE continues downward for 2 years after the first rate cut.
I used to charge for this kind of info, but I'm old now and I just don't care.
Peace and love.
It so funny! They keep talking about RE investors issues and renters getting more power when the fact is that any Joe out there could borrow free money until recently, could go out into the RE market and buy multiple RE investments. And, this person/entity would be called a bonafide RE investor . What a joke! Such so called RE investors gamed the system, the system allowed them to borrow at NO cost , plus allowed them to fund investments with almost zero skin in the game , making use of loop holes such funding from HELOCK to fund multiple investment. Until recently, even a Uber driver In the GTA was a RE investor, buying multiple homes with over leveraged loans that the banks allowed with no due diligence. Time for such RE investors to own up to their greed and poor financial decision making!
Communism is alive and well in canada.
I dont understand these people buying houses in nvan just to rent out at ridiculously high rents. Why are the banks taking on this risk
The banks are actually very conservative. It’s extremely difficult to get a mortgage. Money has been flooding into Canada because it’s a safe haven.
Because that's how the bank makes money. Those loans are covered 18 ways from Tuesday, so the bank rarely, if ever, loses on the deal. Thus they continue.
Not many people buying detached houses to rent out. Almost nonexistent really
@@saretsky Is it almost non existent tho? Maybe not buying a full home to rent the whole thing. But as an electrician I have worked in north van and seen quite a few people who bought homes to live in/rent out a portion all as a stepping stone to buy another home with the equity later. I had a long conversation with a young guy, 27, from the island who did the same thing there and then moved to N.van to do it all over. While I would agree its not the majority its not "nonexistent"
BTW in World Wars interest rates rocket higher and stay high.
Strange, I'm already growing a victory garden.
High demand from both domestic and international buyers, limited housing supply due to geographical constraints, and speculative investment have contributed to making real estate in Vancouver unaffordable. Anyone who focuses on only one variable is clueless.
People think developers have hundreds of millions of dollars just sitting in their back pocket. Without investors a lot of these bigger projects won’t even get off the ground. Making a bad situation, even worse.
BC real estate market is making me physically and mentally sick.
Mass unemployment,unaffordability, destitution, drug addicts, criminal gangs will soon mean RE prices all over Canada, especially big cities, would go down the drain.
I love Canada. God bless Tiff Macklem. Justin Trudeau and Chrystia Freeland.
🇨🇦
Canada is the best country in the world.
Rates at 5+% forever.
Rate Cuts to please debtors and real estate agents will cause hyperinflation for food and everything. Your eyes will tell you that inflation is not going down....We have gas back to $2.10 a litre in the lower mainland.
If I was a seller, I’d be selling privately and totally avoiding realtor commission, or negotiating less commission. The amount of commission being paid is unrealistic for selling non productive assets for a countries GDP which is just creating historic amounts of debt that’s not going to be ever repaid.
Pricing a house is actually hard?? Wtf. Try working outside all winter long in -30 degree weather. What a softy.
It’s probably “hard” because all true value of houses has been lost in the wind. And it’s the speculators fault. Realtors get 0 sympathy.
Let’s bring it back to reality and use houses as a place to live and raise your own equity instead of other people trying to rent out for passive income. Do that with other investments that don’t affect the economy in a negative way.
Can’t believe the stupidity out there. How did people ever survive from the 50s-90s without half the population being landlords????? Omg were doomed without landlords. We need More lords of the land!!!
There is a lot of factors to consider - Money laundering - Over estimated values - Foreign investment - Inflation - Mortgage rate hikes - Immigration - Solutions in use currently... Multi Generational Home ownership - Not selling to pass down in family - Co-Ownership but Single Income ownership will likely end up foreclosing which will hurt economy but open up market.
I also don't believe rates will decline significantly. When my parents bought the family home in 1958, rate of inflation was about 3%. Rate of mortgage was 6.25%. Now, rate of inflation is about 3% and mortgages are about 5.7%. If rates go lower, money for mortgages will dry up. If they go higher, fewer will be willing to borrow. Right now, we are in the period of adjustment where we become accustomed to this new reality. In a while if rates stay the same, some prices will be lowered, some people will find innovative ways to qualify, and the market and our perceptions will then have been 'adjusted'.
algorithm of cpi has been manipulated and completely faked，today’s 3% cpi is equivalent to 10% cpi in 1958！😊
Interest rates up, price needs a big correction
Most of the cities in Canada are still very affordable. Problem is Vancouver and Toronto is highly desirable and people and it to be affordable.
Didn't you say for years the math doesn't work with 8 rate hikes in 2022? If the math doesn't work - how is it possible that rates can remain this elevated?
It doesn’t that’s why you’re seeing recent investors now selling. Unless your cost basis is really low it will be hard to hold
5.25 is NOT high
It is. You have to qualify for 7.25, and there are quite a lot of people whose income is less dispensible now with all the inflation and cost of living. So 5.25% in 2020 is not the same as 5.25% in 2024. Hell, in 1990 those 5.25% would be far better than now, in terms of affordability.
@@jupitereye4322 yes. It’s not the interest rate that’s high. It’s the house price. That’s why no one is buying houses right now.
@@BellaBella-jw9ef100%. Low interest rates and quantitative easing created this issue.
@@BellaBella-jw9ef The house costs as much as the materials and labor, land, and the developer's profit. I've recently purchased a brand new house and I can tell you the construction cost was around 550k for a 3000sq ft house. That is the official expenses form, listed on a government website. On top of that, you have land that is 430k or so. So that is almost 1 million, but on top of that you have developers' profit, around 25%, and on top of that you have GST and transfer tax. This house in particular cost 1.25 million. Can you make it for less? Yes. You make a bit smaller house, a bit smaller lot, a bit cheaper materials, but you'll still get to 1 million easily. And this is West Kelowna, not even Vancouver or any other major area. The problem is that EVERYTHING is up, except salaries. The whole economy sucks. Houses can no longer be made for cheap, and guess what, every house you see is on average lasting up to 50 years, some even less and very few more. This by definition means the entire city will be replaced in 100 years easily more than once. House prices ain't going down, ever. Forget about that. At best, they will stagnate for a while, but in 10 years I guarantee you all of them will go up. My prediction is that there will be stagnation for a few years and then maybe in 2028 to 2030 you'll see a sudden jump again, just like it was in 2016.
@@jupitereye4322 the prime rate peaked at 14.75% in 1990…
Toronto Vancouver house prices ll go down %85 imminent
Geez, UA-cam is interrupting with an ad every 2 minutes. Getting pretty out of hand.
Adblocker plus
I noticed more , too. Even google is trying to keep up with rising costs! hard up for $$
Steve is disheartened because housing has ceased to be an asset for speculation. My main gripe with him is his facade of empathy towards the buyers, as if he’s experiencing the same level of distress. However, his true intent surfaces when he subtly promotes fear of missing out (FOMO) and speculation. This can be characterized as a form of passive aggression.
Toilet paper currency
Investors are loosing money and home value every month. Take a hit and sleep better. The rates are never going down to 1%. Get a tenant which does not move or stops paying and you are loosing even more 😢
imagine being a Canadian housing bull into this. lol. The loonie close to becoming a .50c rate. you can still buy in mexico for a decent deal. Argentina much better for your $$
The top end of the market is still moving as core buyers "students" and "homemakers" reporting poverty level incomes keep snapping them up.
Toronto and Vancouver is fuelled by foreign money. Look who’s at all these open houses.
We’re you the expert with 7 days a week experience who had predicted the rates will not go up. 😊
Let all future generations live in tiny cubicles for what I paid for my single family home. it's only fair.
Just look at Hong Kong, Singapore and Tokyo. That’s the future for desirable cities.
@@Observer168 Unlike Singapore's 734 sq km and HK's 1100 sq km Canada has 10,000.000 sq km and is not running out of land. Also both those cities push the filthy poor and workers outside the borders. They are gated communities, not countries.
@@Chris-xc1tmpointless talking about Canada’s area when most of it’s population is concentrated in a few cities. Everyone wants to be in Vancouver and Toronto.
@@Chris-xc1tm everyone wants to live in Vancouver and Toronto so pointless to tell me how big Canada is.
Only the dummies thought 5 rate cuts were coming
so ice of them considering 30 yrs amor more money for the banks
This was a post I made on December 9th when the media was hyping a spring market and rate cuts. Tom Storey's channel.
"I think you should still come out with a prediction anyways. My current call is double digit unemployment. I think sellers hold off on price reductions if they expect future cuts. However this will lead to increased inventory. New builds being completed will also be adding to supply at the same time. Once we get official hard landing headlines, sellers and speculators will try to front run each other. With all the inventory it should help prices come down. Once that inventory is absorbed, we go back to supply shortages as no one is applying for permits. There will be some prime opportunities coming up for those sitting on cash. The higher the unemployment rate is, the better the opportunity to buy."
Inventory is going to rise as new listings sit. If rates aren't cut like many sellers are anticipating, then that will also sour sentiment.
"You will regret not buying in December" -Steve K
Seems to be happening for condos, but not for SFD
That’s been my view too…
@@HaydonAshurstFamily Agree. Our family is looking for SFD. There is significantly less inv avail now compared to when we were looking 4Q23 and 1Q24. Most avail SFD we've viewed are from families moving out of Metro or out of province. Everyone else prefers to stay put with their low rate mortgages.
there are no builders building cheaper anywhere in Canada? right. Builders will stop building and change careers? right... It's like I wake up tomorrow and decide i'm underpaid and stay home lol
I can’t wait for the BOC 0.25 rate cut really get thinks moving again
desperate lol
Let go FJT 50 years amortization
government’s puttin out more mandates than Grindr
Thanks Steve. I m always learning on your channel. Looking forward meeting you again on the next loony hour event in YVR ( hopefully soon)
🙌🏻
He said nothing
@3:15 just follow the 'experts' right Steve? RE agents are totally trustworthy and have never pumped the market. No one is left holding the bag, and we should get five cuts just like you said.
True dat
I like that you are cautious with your commetary and projections, Steve. I acquiesce. Rates will come down, but nobody really knows when...next year perhaps?
June.
@@doctorgonzo5358crystal ball maybe? Can I get one as well.
While disinflation might give a little room tp the BoC in the short term, rising commodity prices (and a stronger USD) will keep inflation uncomfortably high.
You are right, Steve, that this isn't fully in Canada's control. But that's what happens when you burn all your buffer on stupid policy.
Plus, layoffs. That is the last lag to come around. It could get stagflationary real quick.
Bottom line, too much risk in RE.
Gold, however ;)
The sell off at the coast has destroyed the Okanagan and surrounding areas. All the way into Alberta now. This is pretty bad. Use to live in east courtenay in the 90's god help me if I ever see, there's nothing left. The south Okanagan I couldn't sell out of here fast enough.
In my view the recent Gov't regulatory proposals, inclusive of rent controls/zoning etc., if nothing else ?
should offer a very late cycle wake up call for any remaining investor based 'normalcy bias' in returning rate cut fueled activity supportive of valuations..... as DEBT/leverage does indeed become the enemy into Financial conditions.
And while simple supply/demand issues may sustain SFD market valuations substantiated by the rapidly accelerating wealth inequality shorter term..... without viable/stable entry level Real Estate/wage dynamics facilitative of 'moving up' over time.... coupled with aging demographics.... I would suggest that beyond the typically paid off legacy/family successorship SFD transfers somewhat immune to Financial conditions ..... that the potential for the still "leveraged" SFD valuations to deflate over time is growing.
Prices won’t go down much and will rebound, mortgage payers can’t afford to lose large sums. Higher prices are here to stay especially for single homes
Regulatory relapse back into allowance of 30 year Mortgage amortizations stimulative to Real Estate valuation levels.... at this juncture.....
would represent a significant and completely unacceptable potential for further financial system risk as actuarial assumptions are recalculated.
Akin to merely 'kicking the can' down the road once again....
let's just say that the inflationary pressures in further debasement based DEBT instrument growth resurgence potential, merely applying now "Duct Tape" on top of prior band-aides battling "symptoms".... is alarming to say the least !
In Canada... we have a DEBT bubble pervasive into all asset classes now predicated in viable remediation by Monetary Policy efforts.... entirely upon maintenance of currency valuation into demand destruction... unfortunately a severe recession... and an extremely painful/extended deleveraging cycle.
Without which.....
and this is a really big IF.... an outright Financial Crisis can be avoided as increasing Gov't Fiscal policy pressures exacerbate BoC Monetary Policy efforts ?
Buckle up.... !
.
No rate cuts coming this year and you got to be crazy to buy at current prices. Invest in Seattle and get better returns in USD while CAD goes down further.
Pricing RE in Canada, is based on emotions and is not based on true demand and supply. add to it realtors wanting to pump up the RE prices for better commissions, it is completely rigged. You really don't know what you have paid for or whether the house is even worth the price. If one were to do costing of the material and land on which a house is built, you realise you are paying 10 to 15 times more the cost of the build.
They are going to lose what’s left of their support if they introduce longer amortizations.
Just absolutely crazy to try and stoke demand right now. All it results in is even higher pieces and more debt.
Most inept government of all time.
The cost of living is even more expensive with high interest rates. Rents have skyrocketed since the rate hikes and now people are losing their jobs which makes things even more unaffordable.
Bond yields are moving with oil. If oil continues up, so should yields. Gold started front running the next leg up in commodities (as it does) a while back and by extension, more inflation on the way.
Don’t expect anything else other then maybe .5 % drop in interest rate for maybe 6 months June to December due to
Us election otherwise it will be where it is now or higher
We thought we would sell now in the spring... not happening. I wouldn't know first what to do with the money except buy something again. Put it in GIC? I don't have a feeling this would be better either. So we are just going to eat the cost of this stagnation and high interest rates.
Yes. Black swan armageddon meltdown please. Yes. I’ll take two please.
An extra 5 years on the loan won’t help much.
5 cuts from BoC?…LOL!!!!
The solution is a correction and a correction is coming… this can’t keep going on forever.
You don’t understand the concept of fiat currency. Value of money goes down so assets like homes will keep getting more expensive. Nobody holds cash because it loses value.
the homes that priced right are selling the greedy sellers are bad for business complete waste of time and energy
There is NO REASON for there to even be an amortization period. I'm glad we're finally heading in to a situation that will ultimately remove the cap. It is not needed.
Just because you have to move doesn't mean you have to buy another home. You can rent.
What are the benefits of living in downtown Vancouver.Its a serious question coming from a born & Bred Sth Londoner (UK) & perm resident of Canada thankfully:0]
Amenities, walkability
If you think like a bear you will be rewarded as a bull
RAISE THE RATE BABY!
Your just asking for rents to get higher, higher unemployment and more businesses struggling
YES, low rates = bad loans that shouldn’t have been loaned. Bad times are needed for this to be corrected.
Hope has been a strategy for awhile now lol
I'm getting my property management license. Will be a good addition for more consistent income to supplement my real estate license in BC
Steve has a very advanced understanding of economics. His understanding of economics and his application of it in these videos surpasses even his Real Estate knowledge.
Great analysis! 👏👏👏
Hi Steve …I saw a few house last 2 weeks and they all have accepted offer and a lot of people at open house. The market seems hot?
Yes for entry level houses it is hot
@@saretsky I was looking at house around 2.6-3 million. That consider entry level?
@@frankcho9293doubt it
🐂💩😂
5 and 6 percent interest rates ARE NOT HIGH. This is still traditionally low. A bond should have a yield of about 6-7 percent minimum which means mortgage rates should be about 8-10%. That would be normal and healthy.
$43 billion was moved in Canada from just Hong Kong in 2021. Any stats on how much money gets moved into Canada each year?
Capital flows out of Hong Kong banks reaching Canada rose to their highest levels on record last year, with about C$43.6 billion in electronic funds transfers (EFT) recorded by FINTRAC, Canada’s anti-money laundering agency, which receives reports on transfers above C$10,000.
2021 was the peak it’s 2024 now
It’s peaked and Canada has stopped posting data on how much money is flowing in. The M2 money supply is at historic highs so it’s a good indicator for how much money is available.
M1 and M2 money are the two mostly commonly used definitions of money. M1 = coins and currency in circulation + checkable (demand) deposit + traveler's checks + saving deposits. M2 = M1 + money market funds + certificates of deposit + other time deposits.
...fourplexes as a right of passage... I'm rolling on the floor laughing here!
Kiss goodbye to high prices specially in Vancouver. The Chinese investor is gone for at least 10 years. Other than the weather Vancouver has not much to offer and for that matter Canada
I think it’s funny how the family house with property is the ideal when most kids are on their iPads or at extracurricular activities. It is a status symbol along with a boat and an RV. Not like that in Europe.
Solid, balanced perspective Steve !
Thanks for inspiring me to be consistent with social media mate 👏
Do real estate agents sell all their properties before SHTF? Maybe you don’t but I can only imagine that anyone with their finger on the pulse would flip first.
The US is in Fiscal Dominance until breakage so make your real estate decisions based on this fact.