News   Feb 23, 2024
 1.3K     2 
News   Feb 23, 2024
 626     0 
News   Feb 23, 2024
 938     0 

Baby, we got a bubble!?

The Feds are considering lowering interest rates...this only be a plus for a healthy real estate market.

http://www.thestar.com/business/markets/article/1037066--interest-rates-set-to-fall

god i hope not - what's the point?

BofC already concerned about excessive debt loads, but they're willing to all oil to the fire ?!?

BofC's cut of overnight rate to 0.25% was already unnecessary, and this scenario is reminiscent of US Fed's Greenspan's moves during the early 2000's ... irrational exuberance inflating asset bubbles beyond fundamentals ending in a horrible near depression pop lasting 3 years so far, with an anticipation for 2 more years.
 
Here we go, just posted this afternoon:

Yields Crash. Lower Fixed Mortgage Rates Coming

6a00d8341c74cb53ef014e8a5407aa970d-pi


Today we’ve already seen:

A major bank lower discounted fixed broker rates by 10 bps to 3.69%
A few non-bank lenders cut 5-year fixed rates by 10 bps
Brokers offering 3.39% on no-frills mortgages.

Variable-rate mortgagors should also benefit from all of this (mortgage-wise, if not economically). That’s because a BoC rate hike appears to be off the table in 2011…if you believe what OISs and BAX futures are implying. If true, prime rate will stay put for at least the short-to-medium term.
The 5-year bond yield is now below 1.35%. Consequently, people are now getting 5-year fixed rate mortgages for under 3%, and they're not even no-frills mortgages. Wow.

And the Fed is saying it won't raise rates until 2013.

I renew my mortgage in 2013. Good. ;)
 
Interest rates should stay the same for a while, it a great time to buy first home or investment property! The only better things to invest now is gold!

Forget the rest get the best!!!
 
From the "great"(lol) Garth Turner himself:

So let me kick this off.

First, six cities which I think will be least affected by the inevitable blighting:

416, where real estate will be among the stickiest in the country. Sure, the GTA as a whole could be in for a 15% haircut, but the epicentre of a region of six million people and a robust economy (despite a growing pile of bodies on Bay Street) is likely to see only marginal declines. There’s a reason the average SFH here in the centre is $800,000, and it’s called the 401.
http://www.greaterfool.ca/2011/08/10/losers
Even he doesn't think there will be a big decline in Toronto proper....interesting....
 
California USA vs. Ontario Canada - Which State (Province) Is In Worse Shape?

Garth Turner has his own self-interest for which he rallies to an audience of probably <1000 loonies. For Ontario, the day of reckoning will surely come.

It is an absolute national disgrace and truly an international comic tragedy to suggest that Ontario/Canada remotely has its collective fiscal house in order. We are indeed so very screwed in the long term.

How this affects the local Toronto real estate market in the short term remains a bit of mystery to me but I cannot foresee a scenario where eventually all but basis essential services in Ontario vanish and taxes skyrocket. Neither bode well for its cultural and financial capital, the mighty Toronto.

http://globaleconomicanalysis.blogspot.com/2010/03/california-usa-vs-ontario-canada-which_29.html

California USA vs. Ontario Canada - Which State (Province) Is In Worse Shape?

Total Debt Comparison

Ontario's net debt is C$220 billion ($216 billion). California has $83.5 billion in long-term bond debt. Of course we probably need to factor in California's share of US national debt and the same for Ontario.

Regardless of how you slice it, both California and Ontario are fiscal disasters. A case can be made that Ontario is much worse than California. So when you hear all this talk about how much worse California is than Greece, just remember, so is Ontario.
 
It is an absolute national disgrace and truly an international comic tragedy to suggest that Ontario/Canada remotely has its collective fiscal house in order. We are indeed so very screwed in the long term.

How this affects the local Toronto real estate market in the short term remains a bit of mystery to me but I cannot foresee a scenario where eventually all but basis essential services in Ontario vanish and taxes skyrocket. Neither bode well for its cultural and financial capital, the mighty Toronto.

http://globaleconomicanalysis.blogspot.com/2010/03/california-usa-vs-ontario-canada-which_29.html
California's problem is its unfunded pension liability, not its current debt.

well he's been wrong for so long, perhaps he'll change his tune and be right finally, or would that make him wrong again !?!
If he thinks we're not in for a big drop, then it's time to get worried. The guy just always seems to be wrong.
 

You found my ad Eug.

Are you willing to give me one of your Vancouver properties?

I am not exactly sure what a dinosaur does despite the ad but I would be willing to try. LOL

Boy the world has a lot of strange people and strange ideas. I wonder if someone will actually respond to this.
 
I know some of you miss me :), as an investor, I am adding Florida real estate at this time.

Yes,Yes. We did miss you.

Unfortunately, during your last sojourn, we had used up almost all of the available kleenexes. As such, this time, we did not cry out loud.:)
 
Mid-Month stats are in for August

Toronto, August 16, 2011 –There were 3,214 sales through the TorontoMLS® system during the first
14 days of August, representing more than a 22.5 per cent increase compared to the same period in
August 2010. Year-to-date sales through the 14th of August were all but caught up to last year’s total –
down by half a per cent compared to 2010.

“The unsettled situation in financial markets over the past few weeks did not appear to sap the confidence
of GTA home buyers during the first half of August,” said Toronto Real Estate Board President Richard
Silver. “Revised forecasts for future Bank of Canada interest rate decisions coupled with the recent
announcement by the US Federal Reserve, suggest that interest rate hikes in Canada are on hold at least
until sometime in 2012. This is a positive for affordability and should help sustain buyer confidence
moving forward.”

The average selling price was up by almost seven percent annually during the first 14 days of August to
$440,150.

“The rate of price growth reported for the first two weeks of August continued to point to sellers’ market
conditions in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “However, it
should be noted that new listings grew at a slightly greater pace than sales. A better

So since April 2011, y/y prices have been up 9%+, except for the first two weeks of this month, up just under 7% y/y so far.

Condo prices up 12% y/y. Detached home prices in the 416 are down -7% y/y , almost down $100,000 from july 2011. I know it's only the first two weeks of August but, ugh is that a typo??

http://www.torontorealestateboard.c...t_updates/news2011/pdf/MID_MONTH_AUG_2011.pdf
 
Last edited:

Top