big easy wrote:http://www.theglobeandmail.com/report-on-business/economy/housing/two-steady-housing-years-ahead-cmhc/article2336199/
Two more steady years ahead according to CHMC. I note in my own area of Vancouver that actual sales prices are now below appraised value - some as much as $100,000 below. Most recent data is as of Oct 2011 though. Could this be the beginning of the long awaited correction/crash.
dusty2 wrote: If they're selling for $100,000 lower than their asking price, then there's a problem.
I don't know who was making the appraisals, but I don't think that I'd recommend them with that appraisal.
In the years following the global financial crisis (GFC), the Canadian and Australian housing markets were among the best performing in the English-speaking world. While housing markets in other English-speaking nations- most notably the United States, Ireland, the United Kingdom, and New Zealand – remained in a funk, Canada’s and Australia’s powered on to new all-time highs.
Whereas Australia’s house prices peaked in mid-2010, and have been deflating ever since, Canada’s powered on led by its third largest metropolis, Vancouver, British Columbia
gsp_ wrote:An economist who believes he can predict not only the magnitude of bond/mortgage rate increases but also precisely when they will peak and then forms his argument around those faits accomplis.
Love the foolishnessbravado displayed by prognosticators.
HardWorker wrote:We were having dinner at the inlaws, when they mentioned how much the realestate market today reminds them of the 80s. They also commented how unfortunate it is, and was, for the responsible owners to sink with the overspenders.
AltaRed wrote:HardWorker wrote:We were having dinner at the inlaws, when they mentioned how much the realestate market today reminds them of the 80s. They also commented how unfortunate it is, and was, for the responsible owners to sink with the overspenders.
Yes, it can be sad that generally hard working individuals have to endure the stress caused by the consequences of greedy irresponsible speculators. But provided responsible homeowners have not overextended themselves, it is good for the market to shake out the sleazebags from time to time.
HardWorker wrote:The 5% down payment is borrowed from one of the parents, who are also the co-signors on the mortgage . We tried our best with gentle hints its best not to buy, but we simply were no match for their emotions. They are such awesome people, and I hope they won't get burned that badly, but I'm not betting the farm on it, nor do I think they are the only ones.
AltaRed wrote:I hope they at least signed up for a 5 year term. The risk comes when the term is up and the mortgage is underwater. As I understand it, the lender wants the difference up front before agreeing to a new term. This happened in Calgary post-2007 peak when 5% (even 10%) down payments left houses underwater by 2008-2009. People lost houses because they couldn't come up with the difference.
HardWorker wrote:So that would limit their losses to 5 years in a worst case scenario? Meaning they'd lose everything they've spent on that house in 5 years? I'm assuming in 5 years its worth exactly what they paid today.
dusty2 wrote:Housing bubble heads should keep their 'gentle hints' about not buying a home to themselves, they've been wrong for the last 30 years and they'll probably be wrong for the next 30.
HardWorker wrote:You really would tell a couple with no down payment, bad credit, to buy a house over budget/over asking price just because interest rates are super low now, and houses can only appreciate?
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