JayBee
Senior Member
20% is a shitload of a drop.
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Baby, we got a bubble!?
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KA1
Senior Member
How far down do you think it could go and during what time frame?
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urbandreamer
recession proof
50% drop in luxury condo prices?
KA1
Senior Member
Try to be nice to me, please. I don't wish to die from a heart attack before I take possession of my unit on a high floor in AURA.
JayBee
Senior Member
I have no idea (neither does anyone in this thread IMO)....20% is not good..especially when you see what people are paying for new construction...imagine buying new constructino and having your place be worth 80K less than what you paid for it on closing. That would give me a heart attack. LOL
interested
Senior Member
Possible but very unlikely. Even in the worst of US markets, you saw perhaps 60% drop with prices tripling in the 3-4 year prior and abillity for people to finance with no money down and "walk away mortgages" which does not exist in Canada.
Luxury at 50% drop? The real issue here I believe is how much of the luxury market is off shore investors (50% is my guess) and how do they react and is there a better place for them to invest. If the answer is there are better places, TO is overpriced and going to drop, and alot dump on mass then the slide could be brutal. But even in Florida I saw Trump Hollywood, a beautiful luxury condo where virtually everyone walked away. The lenders allowed a 30% price reduction and they had sold 1/2 the building in 3 months to new investors/owners. (From $800/sq. ft to $550/sq. ft range). And I believe we would all agree Florida is about as disastrous as it gets. So UD, I think 50% is overstated though luxury falls more than mid range.
Even Dubai was off 35% and is now showing signs of recovery.
I believe David Rosenberg is correct there will be a correction. I will go out on a limb and as correctly posted by others, "no one really knows, just guesses" but I believe we will possibly test the lows of last March but that would be the extent of it (unless there is a total meltdown of the Canadian economy), so I predict maximum 20% and 10-15% more likely but in fact quite possible.
interested
Senior Member
Ka, I will be nice to you. See my previous post to UD. I think 10-15% is possible from the present highs and prices go back to 2007-2008 level (which is when you would have bought. I doubt you would "lose money" perhaps not have as much or paper gains in the immediate few years of the occupancy.
As you are going to live there, it won't matter (unless you were thinking of a hi ratio mortgage in which case it could be a problem.
Also remember reading newspaper articles they rehash the same stuff over and over (a bit like CNN 24 hour news). After you see the first event over and over, you start to think it is happening en mass when it is still 1 event. Don't overread disaster in the housing market just because people are saying 10 times instead of once. Prices now are not reasonable.
I wrote in other posts before that I believe most would agree that prior to the sudden halt in Oct 2008 of the real estate market, and the disasters with Lehman Brothers and what followed, everyone thought everything was great. We have a good but tentative recovery with alot of money awash from governments borrowing and record low interest rates. I think most would agree though that things are not as rosy now as they were thought to be prior to Oct 2008, and yet prices are higher now. So a pullback below Oct 2008 levels (read Jan to March 2009 at the bottom) would be reasonable to expect.
urbandreamer
recession proof
^I believe the drop will coincide with the $INDU/$TSX double bottom so it will be steep and brutal. Since the wealthy investor is more exposed to the stock market, the wealthy investor condo market will tank the hardest. I think speculator low end units (CP, LV, and large multi res buildings like Aura, 1 Bloor etc) will be off 35%. -50% is my guess for some of the ultra luxury product--I'm talking about maybe a few dozen units here. Unlike the hard bounce we got March 2009 I believe the recovery will be drawn out longer...meaning lower prices will be in effect for at least 2-3 years instead of 6-8 months like last year.
interested
Senior Member
If you are suggesting that there will be some weak sales of people who can't carry, you may well be correct. But I don't believe it will spread all accross. I agree with one part of your thesis however, that small little units eg. 500 sq. ft luxury at $400000 could drop but do you really believe that at 1 Bloor for eg.(and I think there is as much hype about this as any building in the city so amongst the most overinflated in my view) would go to $200,000? I mean that would be hitting a price of 6 years ago or so for luxury. That is alot of retracing and suggesting that more than 1/2 the growth of this cycle is unsustainable and while agree the last 10-20% may be, I don't believe 50%.
As well, regarding the retrace and double bottom of the TSX, I think there will be some correction here as you say. Will it be back to where it was before, I have no idea. I hope not. But UD, do you not think a number of people are investing in real estate so they can get a more reliable source of income and have a somewhat more secure asset. You can at least look and feel brick and mortar. Paper stocks are in fact just that, paper. I for one believe that rents will drop but r/e will still have a return associated with it which is not as likely with stocks. and unlike 1989 when interest rates where in the teens, even if interest rates go up 2-3% people should be able to run break even or close to it even if no return so the pressure to sell would be less and the desire to ride it out higher I would believe.
interested
Senior Member
One other thought UD. If the TSX hits the lows that it did again say and drops 30% from present levels (or 50% from the peak prior to the descent), houses dropped about 20% from the peak so why do you postulate 50% for realestate (luxury) and 35% for large multiresidential units?
CN Tower
Banned
Obama Pays More Than Buffett as U.S. Risks AAA Rating
The most under-reported story of the week and a signal that the removal of QE by the Fed is starting to show cracks in the foundation:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYUeBnitz7nU
March 22 (Bloomberg) -- The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama.
Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare†event in the history of the bond market.
The $2.59 trillion of Treasury Department sales since the start of 2009 have created a glut as the budget deficit swelled to a post-World War II-record 10 percent of the economy and raised concerns whether the U.S. deserves its AAA credit rating. The increased borrowing may also undermine the first-quarter rally in Treasuries as the economy improves.
“It’s a slap upside the head of the government,†said Mitchell Stapley, the chief fixed-income officer in Grand Rapids, Michigan, at Fifth Third Asset Management, which oversees $22 billion. “It could be the moment where hopefully you realize that risk is beginning to creep into your credit profile and the costs associated with that can be pretty scary.â€
Moody’s Warning
While Treasuries backed by the full faith and credit of the government typically yield less than corporate debt, the relationship has flipped as Moody’s Investors Service predicts the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K. America will use about 7 percent of taxes for debt payments in 2010 and almost 11 percent in 2013, moving “substantially†closer to losing its AAA rating, Moody’s said last week.
“Those economies have been caught in a crisis while they are highly leveraged,†said Pierre Cailleteau, the managing director of sovereign risk at Moody’s in London. “They have to make the required adjustment to stabilize markets without choking off growth.â€
Advanced economies face “acute†challenges in tackling high public debt, and unwinding existing stimulus measures will not come close to bringing deficits back to prudent levels, said John Lipsky, first deputy managing director of the International Monetary Fund.
Unprecedented Spending
All G7 countries, except Canada and Germany, will have debt-to-GDP ratios close to or exceeding 100 percent by 2014, Lipsky said in a speech yesterday at the China Development Forum in Beijing. Already this year, the average ratio in advanced economies is expected to reach the levels seen in 1950, after World War II, he said.
Obama’s unprecedented spending and the Federal Reserve’s emergency measures to fix the financial system are boosting the economy and cutting the risk of corporate failures. Standard & Poor’s said the default rate will drop to 5 percent by year-end from 10.4 percent in February.
Bonds sold by companies have returned 3.24 percent this year, including reinvested interest, compared with a 1.55 percent gain for Treasuries, Bank of America Merrill Lynch index data show. Returns exceeded government debt by a record 23 percentage points in 2009.
Berkshire Hathaway
Berkshire Hathaway’s 1.4 percent notes due February 2012 yielded 0.89 percent on March 18, 3.5 basis points, or 0.035 percentage point, less than Treasuries, composite prices compiled by Bloomberg show. The Omaha, Nebraska-based company, which is rated Aa2 by Moody’s and AA+ by S&P, has about $157 billion of cash and equivalents and about $52 billion of debt.
P&G, the world’s largest consumer-products maker, saw the yield on its 1.375 percent notes due August 2012 fall to 1.12 percent on March 18, 6 basis points below government debt. The Cincinnati-based company, rated Aa3 by Moody’s and AA- by S&P, makes everything from Tide detergent to Swiffer dusters.
New Brunswick, New Jersey-based Johnson & Johnson’s 5.15 percent securities due August 2012 yielded 1.11 percent on Feb. 17, 3 basis points less than Treasuries, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The world’s largest health products company is rated AAA by S&P and Moody’s.
Yields on bonds of home-improvement retailer Lowe’s in Mooresville, North Carolina, drugmaker Abbott Laboratories of Abbott Park, Illinois, and Toronto-based Royal Bank of Canada have also been below Treasuries, Trace data show.
‘Avalanche’
“It’s a manifestation of this avalanche, this growth in U.S. Treasury supply which is under way and continues for the foreseeable future, and the comparative scarcity of high-quality credit,†particularly in shorter-maturity debt, said Malvey, whose Lehman team was ranked No. 1 in fixed-income strategy by Institutional Investor magazine from 1998 through 2007.
Last year’s $2.1 trillion in borrowing by the government exceeded the $1.08 trillion issued by investment-grade companies, the biggest gap ever, Bloomberg data show. Malvey said the last time he can recall that a corporate bond yield traded below Treasuries was when he was head of company debt research at Kidder Peabody & Co. in the mid-1980s.
While Treasuries are poised to make money for investors this quarter, they are losing momentum. The securities are down 0.43 percent in March after gaining 0.4 percent last month and 1.58 percent in January, Bank of America Merrill Lynch indexes show.
Benchmark 10-year Treasury yields will reach 4.20 percent by year-end, up from 3.69 percent last week, according to the median forecast of 48 economists in a Bloomberg News survey. Two-year yields will rise to 1.77 percent, from 0.99 percent.
Relative Yields
Investors demand 0.60 percentage point more in yield to own 10-year Treasuries than German bunds of similar maturity, Bloomberg data show. A year ago, debt of Germany, whose deficit is 4.2 percent of its economy, yielded about half a percentage point more than Treasuries.
President Obama’s budget proposal would create bigger deficits every year of the next decade, with the gaps totaling $1.2 trillion more than his administration projects, the nonpartisan Congressional Budget Office said this month. Publicly held debt will zoom to $20.3 trillion, or 90 percent of gross domestic product, by 2020, the CBO forecast.
There’s “a lack of a long-term plan to deal with the federal budget deficit,†said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York. “At some point in time the market may lose its patience.â€
Balance Sheets
Deutsche Bank and Barclays Plc, two of the 18 primary dealers of U.S. government securities that are obligated to bid at the Treasury’s auctions, say balance sheets of high-rated companies make them more attractive than Treasuries.
Corporate borrowers are reducing debt at a record pace. Companies in the S&P 500 cut their liabilities by $282 billion to $7.1 trillion in the fourth quarter from the prior three months, Bloomberg data show. That represents 28 percent of assets, the least in at least a decade.
Investors are accepting smaller premiums to lend to companies, with yields on bonds rated at least AA falling to within 107 basis points of Treasuries on average, Bank of America Merrill Lynch indexes show. That’s down from the peak of 515 basis points in November 2008, and approaching the record low of 36 in 1997.
Adding to Corporates
New York Life Investment Management is adding to bets the difference in yields will continue to shrink.
“As the balance sheet of corporate America continues to improve and the balance sheet of the government deteriorates, that spread should narrow,†said Thomas Girard, a senior money manager who helps invest $115 billion at the New York-based insurer. “There is some sort of breaking point. The federal government can’t keep expanding its borrowing without having to incur some costs.â€
For all the concern about U.S. finances, Treasuries are unlikely to lose their role as the world’s borrowing benchmark, said Michael Cheah, who manages $2 billion in bonds at SunAmerica Asset Management in Jersey City, New Jersey. The U.S. has the biggest, most liquid securities markets, said Cheah.
Speculating that Treasuries may lose their privileged position is “not a bet I want to put on,†said Cheah, who worked at Singapore’s central bank. Yields on 10-year notes are about half their average since 1980.
Losing its Status
The last time there was talk of the U.S. losing its status as the world’s benchmark for bonds was in the late 1990s, when the government began amassing budget surpluses in 1998 for the first time in almost three decades. The amount of Treasuries outstanding dropped 8 percent to $3.4 trillion in 2000, the biggest annual decline since 1946.
Treasury supply resumed growing in 2001 after two rounds of tax cuts proposed by President George W. Bush led to deficits. Outstanding Treasury supply rose 53 percent to $4.5 trillion in 2007 from 2000 as the U.S. borrowed to finance tax cuts intended to revive a slumping economy. The amount has since risen 64 percent to $7.4 trillion.
More is on the way. The U.S. will sell a record $2.43 trillion of debt in 2010, according to the average forecast of 10 of the 18 primary dealers in a Bloomberg survey.
At the same time Treasury sales are rising, the cash position of the largest corporations is swelling. Companies in the S&P 500 held a record $2.3 trillion as of the fourth quarter, Bloomberg data show.
Growing Supply
High-rated corporate bonds due in three to five years are most likely to yield less than Treasuries, according to Deutsche Bank’s Pollack. The growing supply of Treasuries with those maturities will make government debt a bigger proportion of indexes that fund managers measure their performance against, he said. Managers betting Treasury yields will rise may diversify into corporate debt, Pollack said.
“There’s no natural law that says a Treasury has to yield less than a corporate,†said Daniel Shackelford, who is part of a group that manages $18 billion in bonds at T. Rowe Price Group Inc. in Baltimore. “It wouldn’t be the first time that I would scratch my head and say ‘this doesn’t make sense, the market’s behaving irrationally.’ And it can go on fo much longer than you may think.â€
To contact the reporters on this story: Daniel Kruger in New York at dkruger1@bloomberg.net; Bryan Keogh in London at bkeogh4@bloomberg.net
Last Updated: March 22, 2010 10:51 EDT
The most under-reported story of the week and a signal that the removal of QE by the Fed is starting to show cracks in the foundation:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYUeBnitz7nU
March 22 (Bloomberg) -- The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama.
Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare†event in the history of the bond market.
The $2.59 trillion of Treasury Department sales since the start of 2009 have created a glut as the budget deficit swelled to a post-World War II-record 10 percent of the economy and raised concerns whether the U.S. deserves its AAA credit rating. The increased borrowing may also undermine the first-quarter rally in Treasuries as the economy improves.
“It’s a slap upside the head of the government,†said Mitchell Stapley, the chief fixed-income officer in Grand Rapids, Michigan, at Fifth Third Asset Management, which oversees $22 billion. “It could be the moment where hopefully you realize that risk is beginning to creep into your credit profile and the costs associated with that can be pretty scary.â€
Moody’s Warning
While Treasuries backed by the full faith and credit of the government typically yield less than corporate debt, the relationship has flipped as Moody’s Investors Service predicts the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K. America will use about 7 percent of taxes for debt payments in 2010 and almost 11 percent in 2013, moving “substantially†closer to losing its AAA rating, Moody’s said last week.
“Those economies have been caught in a crisis while they are highly leveraged,†said Pierre Cailleteau, the managing director of sovereign risk at Moody’s in London. “They have to make the required adjustment to stabilize markets without choking off growth.â€
Advanced economies face “acute†challenges in tackling high public debt, and unwinding existing stimulus measures will not come close to bringing deficits back to prudent levels, said John Lipsky, first deputy managing director of the International Monetary Fund.
Unprecedented Spending
All G7 countries, except Canada and Germany, will have debt-to-GDP ratios close to or exceeding 100 percent by 2014, Lipsky said in a speech yesterday at the China Development Forum in Beijing. Already this year, the average ratio in advanced economies is expected to reach the levels seen in 1950, after World War II, he said.
Obama’s unprecedented spending and the Federal Reserve’s emergency measures to fix the financial system are boosting the economy and cutting the risk of corporate failures. Standard & Poor’s said the default rate will drop to 5 percent by year-end from 10.4 percent in February.
Bonds sold by companies have returned 3.24 percent this year, including reinvested interest, compared with a 1.55 percent gain for Treasuries, Bank of America Merrill Lynch index data show. Returns exceeded government debt by a record 23 percentage points in 2009.
Berkshire Hathaway
Berkshire Hathaway’s 1.4 percent notes due February 2012 yielded 0.89 percent on March 18, 3.5 basis points, or 0.035 percentage point, less than Treasuries, composite prices compiled by Bloomberg show. The Omaha, Nebraska-based company, which is rated Aa2 by Moody’s and AA+ by S&P, has about $157 billion of cash and equivalents and about $52 billion of debt.
P&G, the world’s largest consumer-products maker, saw the yield on its 1.375 percent notes due August 2012 fall to 1.12 percent on March 18, 6 basis points below government debt. The Cincinnati-based company, rated Aa3 by Moody’s and AA- by S&P, makes everything from Tide detergent to Swiffer dusters.
New Brunswick, New Jersey-based Johnson & Johnson’s 5.15 percent securities due August 2012 yielded 1.11 percent on Feb. 17, 3 basis points less than Treasuries, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The world’s largest health products company is rated AAA by S&P and Moody’s.
Yields on bonds of home-improvement retailer Lowe’s in Mooresville, North Carolina, drugmaker Abbott Laboratories of Abbott Park, Illinois, and Toronto-based Royal Bank of Canada have also been below Treasuries, Trace data show.
‘Avalanche’
“It’s a manifestation of this avalanche, this growth in U.S. Treasury supply which is under way and continues for the foreseeable future, and the comparative scarcity of high-quality credit,†particularly in shorter-maturity debt, said Malvey, whose Lehman team was ranked No. 1 in fixed-income strategy by Institutional Investor magazine from 1998 through 2007.
Last year’s $2.1 trillion in borrowing by the government exceeded the $1.08 trillion issued by investment-grade companies, the biggest gap ever, Bloomberg data show. Malvey said the last time he can recall that a corporate bond yield traded below Treasuries was when he was head of company debt research at Kidder Peabody & Co. in the mid-1980s.
While Treasuries are poised to make money for investors this quarter, they are losing momentum. The securities are down 0.43 percent in March after gaining 0.4 percent last month and 1.58 percent in January, Bank of America Merrill Lynch indexes show.
Benchmark 10-year Treasury yields will reach 4.20 percent by year-end, up from 3.69 percent last week, according to the median forecast of 48 economists in a Bloomberg News survey. Two-year yields will rise to 1.77 percent, from 0.99 percent.
Relative Yields
Investors demand 0.60 percentage point more in yield to own 10-year Treasuries than German bunds of similar maturity, Bloomberg data show. A year ago, debt of Germany, whose deficit is 4.2 percent of its economy, yielded about half a percentage point more than Treasuries.
President Obama’s budget proposal would create bigger deficits every year of the next decade, with the gaps totaling $1.2 trillion more than his administration projects, the nonpartisan Congressional Budget Office said this month. Publicly held debt will zoom to $20.3 trillion, or 90 percent of gross domestic product, by 2020, the CBO forecast.
There’s “a lack of a long-term plan to deal with the federal budget deficit,†said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York. “At some point in time the market may lose its patience.â€
Balance Sheets
Deutsche Bank and Barclays Plc, two of the 18 primary dealers of U.S. government securities that are obligated to bid at the Treasury’s auctions, say balance sheets of high-rated companies make them more attractive than Treasuries.
Corporate borrowers are reducing debt at a record pace. Companies in the S&P 500 cut their liabilities by $282 billion to $7.1 trillion in the fourth quarter from the prior three months, Bloomberg data show. That represents 28 percent of assets, the least in at least a decade.
Investors are accepting smaller premiums to lend to companies, with yields on bonds rated at least AA falling to within 107 basis points of Treasuries on average, Bank of America Merrill Lynch indexes show. That’s down from the peak of 515 basis points in November 2008, and approaching the record low of 36 in 1997.
Adding to Corporates
New York Life Investment Management is adding to bets the difference in yields will continue to shrink.
“As the balance sheet of corporate America continues to improve and the balance sheet of the government deteriorates, that spread should narrow,†said Thomas Girard, a senior money manager who helps invest $115 billion at the New York-based insurer. “There is some sort of breaking point. The federal government can’t keep expanding its borrowing without having to incur some costs.â€
For all the concern about U.S. finances, Treasuries are unlikely to lose their role as the world’s borrowing benchmark, said Michael Cheah, who manages $2 billion in bonds at SunAmerica Asset Management in Jersey City, New Jersey. The U.S. has the biggest, most liquid securities markets, said Cheah.
Speculating that Treasuries may lose their privileged position is “not a bet I want to put on,†said Cheah, who worked at Singapore’s central bank. Yields on 10-year notes are about half their average since 1980.
Losing its Status
The last time there was talk of the U.S. losing its status as the world’s benchmark for bonds was in the late 1990s, when the government began amassing budget surpluses in 1998 for the first time in almost three decades. The amount of Treasuries outstanding dropped 8 percent to $3.4 trillion in 2000, the biggest annual decline since 1946.
Treasury supply resumed growing in 2001 after two rounds of tax cuts proposed by President George W. Bush led to deficits. Outstanding Treasury supply rose 53 percent to $4.5 trillion in 2007 from 2000 as the U.S. borrowed to finance tax cuts intended to revive a slumping economy. The amount has since risen 64 percent to $7.4 trillion.
More is on the way. The U.S. will sell a record $2.43 trillion of debt in 2010, according to the average forecast of 10 of the 18 primary dealers in a Bloomberg survey.
At the same time Treasury sales are rising, the cash position of the largest corporations is swelling. Companies in the S&P 500 held a record $2.3 trillion as of the fourth quarter, Bloomberg data show.
Growing Supply
High-rated corporate bonds due in three to five years are most likely to yield less than Treasuries, according to Deutsche Bank’s Pollack. The growing supply of Treasuries with those maturities will make government debt a bigger proportion of indexes that fund managers measure their performance against, he said. Managers betting Treasury yields will rise may diversify into corporate debt, Pollack said.
“There’s no natural law that says a Treasury has to yield less than a corporate,†said Daniel Shackelford, who is part of a group that manages $18 billion in bonds at T. Rowe Price Group Inc. in Baltimore. “It wouldn’t be the first time that I would scratch my head and say ‘this doesn’t make sense, the market’s behaving irrationally.’ And it can go on fo much longer than you may think.â€
To contact the reporters on this story: Daniel Kruger in New York at dkruger1@bloomberg.net; Bryan Keogh in London at bkeogh4@bloomberg.net
Last Updated: March 22, 2010 10:51 EDT
KA1
Senior Member
poppajojo
Active Member
The analyst guy is right that the housing market is defying logic because of government manipulation. Like the article said stabilized and raising housing prices and sales is what's propping up the economy and preventing a recession. The government will do anything it can to keep housing prices stable. Either the housing market will defy logic and keep going up due to government manipulation or looking at the trends in history, prices will correct themselves and decrease.
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interested
Senior Member
H
heatrate
Guest
It’s interesting to read all of these "doom and gloom" commentaries. While I do have a vested interest in a stable real estate market since I am a property owner, I must say that it is rather comical to read these comments.
It almost feels like a desperate attempt to trigger mass fear in the general population so that a) people shy away from the market and b) sellers dump at all cost so that these very same people can become property owners. It is pretty clear to me that most of the complainers are aspiring home owners.
I have absolutely NO idea where prices are going; although it is not unreasonable for prices to cool given the surge we have seen in the past year not to mention the impact of expected higher interest rates. Whether the market cools 10%, 20%, remains flat or whatever - flip a coin as no one here has any ability to predict with any credible accuracy. If they did, they would be billionaires.
Anyone who continues to participate in the nonsense of trying to comment about the impending doom and gloom is simply a desperate aspiring home owner. Put your cards on the table and reveal your true intentions….
If you think you know it all then focus your time and effort to start a hedge fund, find a creative way to short the Canadian housing market, make your millions when the market bursts and FINALLY become a home owner with your new war chest.
It almost feels like a desperate attempt to trigger mass fear in the general population so that a) people shy away from the market and b) sellers dump at all cost so that these very same people can become property owners. It is pretty clear to me that most of the complainers are aspiring home owners.
I have absolutely NO idea where prices are going; although it is not unreasonable for prices to cool given the surge we have seen in the past year not to mention the impact of expected higher interest rates. Whether the market cools 10%, 20%, remains flat or whatever - flip a coin as no one here has any ability to predict with any credible accuracy. If they did, they would be billionaires.
Anyone who continues to participate in the nonsense of trying to comment about the impending doom and gloom is simply a desperate aspiring home owner. Put your cards on the table and reveal your true intentions….
If you think you know it all then focus your time and effort to start a hedge fund, find a creative way to short the Canadian housing market, make your millions when the market bursts and FINALLY become a home owner with your new war chest.