Whatever their motivation, the Bank of Canada’s interest rate hikes are having an effect. We have yet to see if it’s a desirable effect or not. My money is on the less desirable side.
September home sales in the Greater Toronto Area were down 44.1 per cent from a year ago while sales and average prices declined sequentially from August, according to monthly figures released by the Toronto Regional Real Estate Board on Wednesday.
New listings were also down on a year-over-year basis by 16.7 per cent to 11,237 from 13,494. This was the lowest number of new listings reported for the month of September since 2002. According to TRREB, this is especially worrisome given that the stock of homes in the GTA increased markedly over the last 20 years.
Bubble blown.
I sold my house today, glad I did.
And it is fueling inflation, despite what Putz Stiff Macklem says. So yes, the housing market is calmer, but the economy is close to done. And don’t forget the goal – economic collapse so that you can be killed or enslaved by WEF dictum, and its local instance, Justine.
I sold my house beginning of March in one week using my wife’s intuition and it was the peak. Made a killing. Comparable house across the street from ours put up for sale in July. Still not sold and $300k less. They keep reducing the price. This is in K/W area outside of GTA. The bubble has burst big time.
I faked every real estate bubble.
Of particular interest is that despite the sales being down, down! down!!! the -prices- have not moved at all. Very little is being offered for sale, and people are not qualifying for mortgages to buy what is on offer. The price has not changed.
I am not a finance guy, but it does not seem healthy to me. It also does not seem like something one would see happen in a free market. The buying half of the deal can’t secure credit. The selling half -can’t- lower the price… because they bought on credit. Those buyers with cash are not buying, they are waiting for the price to come down. Result is as we see.
The prices dropped 25% compared to February. If you consider the inflation it’s 30% less. Another 30% and I will buy a house.
When 3 bed bungalow hit 500k in Gvrd then fell back, seemed like a bubble
Then they went to 800k and fell back, that really seemed like a bubble and expert’s concurred.
But then they went to 1.2M and fell back – most certainly a bubble said the experts.
Then this spring they hit 1.7M and now fell back.
Don’t underestimate “policy makers” ability to inflate again into a bigger bubble, or devalue the currency
Bankruptcy would seem to be undesirable.
The market has not collapsed yet due to the huge number of foreigners (immigrants, temporary foreign workers, students) brought in by the Federal Govt. Most of them they don’t buy right away, but they rent, thus helping the property owners to pay their mortgages despite the higher interest rate. It’s like a Ponzi scheme.
Watched the houses go up for sale around me this spring and early summer in a city just north of Calgary.. about 25 houses in a 2 block radius. High prices and all sold within a week or less. No so much any more, there’s a couple houses a few doors down that went up for sale just recently but are not moving.. one is a bit run down with no garage and another down the street, they spent a fortune renovating the entire house and they want too much money for it. Market has certainly slowed down.. Mines been paid for for about ten years and I bought it 20 years ago at a fraction of what its worth now, but, you have to live somewhere…
Maybe Panama, Costa Rica or Mexico…
Storm has been gathering for years.
Waiting for it to break has become too tedious to matter.
Being debt free with zero intention of ever buying again,makes this crisis another meh moment..
As with the end of the world,being right with the timing wrong is just as pointless as being totally wrong to begin with..
When our government debases our coinage to the value of lead,we will use barter again..
Except a whole bunch of our current “helpers” will have no useful function to trade society for their keep..meaning either direct charity or permanent expulsion from productive society..
What a shame..
After all ,who is going to pay taxation for nonexistent services?
Support your local warlord or support your local militia..Your call.