Everyone thinks their house is worth a lot until they list it.
Real estate lender Romspen Investment Corp. has cut back on its dealmaking in Canada after rising interest rates caused a spike in non-performing loans.
The firm, backed by New York-based TIG Advisors, is acting “defensively” to match the current economic environment in the country, Romspen Managing Partner Derek Jenkin said in an interview. “We’re being very selective in what we finance at this time in Canada.”
On whose watch did things go completely crazy? Who is trying to distract us now with desperately cheerful and inadvertently symbolic bungee jumping and Bohemian Crapsody singalongs?
Looks like Canada needs to flood in another 10 million Chinese, Indians, Russians to bump up those house values.
US has spent 30 trillion overseas the last 40 years. Those dollars are looking for a home. Homes.
Hell yes! That would be a great start.
Market is completely dead. Listed our home a month ago for 75k less than we would have earlier in the year and it’s still been completely quiet. Looking at dropping it another 50k or just holding on to 2 homes for a couple years while we wait for things to change.
I did not expect it to be this bad and I’m generally not exactly optimistic on these kind of things.
Where? You don’t have to say specifically, but please indicate region and whether urban, suburban, exurbia or rural. Thanks?
Unless your one of the people who is stuck with negative equity and needs to move this is a good thing. I would like my children to be able to lead independent lives in the future. Every seller wants to get the most and every buyer wants to pay the least.
I’d add that there’s an immense and incredibly perverse entitlement felt by a ton of homeowners-typically boomers-that their house is an asset that must appreciate and they must make tons of money on it. Computers, cars, everything else is expected to get cheaper and better but not houses for stupid reasons.
Sold a week ago for 50k less than I could have earlier in the year, I still feel most fortunate. I am renting for the next year, I suspect anything I want to buy to be much cheaper by then.
This is yet another example of what happens when governments not only fiddle with, but sodomize the free market.
From watching current events for the last 45 years plus, my take is that government bureaucrats know NOTHING about anything. Remember, it was only 8-10 years ago that they were strongly encouraging people to buy those twisty lightbulbs that gave very poor light (I looked like the Crypt Keeper under the light) and then it turned out that the light bulbs leaked mercury. Now it is all about LED bulbs (which as a former interior designer, I knew about over 30 years ago).
I would not trust a word out of any bureaucrat’s mouth.
Also … the twisty bulbs cost about $2.95/ea. My new remodel is filled with LED ‘light engines’ that cost $45 ea. + trim rings. They’re supposed to last 50k hours … we shall see.
The charts above stop at 2020. Prices in Vancouver went up another 80% since then, with about a 10% + correction in the last couple of months
I’d like to see up to date charts.
Living in the suburban GTA I list these two examples:
1. A bungalow asking $1 million, sold at a $300,000 premium in 2021. It has had a complete gutting of the interior by a Chinese crew, even the tool boxes are inscribed with Chinese characters. Still not occupied.
2. Two story, 4 bedroom asked $1 million in 2021; sold for ?. After months sitting empty it under went a 6 – 8 month revamp to the roof, interior, driveway, exterior wall facing, and windows. Still being fixed-up.
How is it that being empty but with a mortgage or municipal taxes due it can sit unoccupied ?
Who has the money to buy, sit on and then renovate ?
Methinks off-shore money is the investor.
A better and more realistic evaluation of value is to convert the price you paid to current dollars. Shockingly low, eh ?
A federal civil servant.