Home sales dropping because of higher interest rates

BC Landlord
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Re: Home sales dropping because of higher interest rates

Post by BC Landlord »

Mazdatruck wrote: Feb 6th, 2024, 1:20 pm IMO peak was 2021 2022.
The peak was actually Mar-June 2022. And what does a peak matter to you? Why didn't you pick some trough as a reference point? And I think, I know know why. It's because you would like to see a downward trend, for whatever reason. It's called wishful thinking.
If you bought at peak, you're down -4.5% and there is four times as much inventory on the market now.
Those who bought at the peak will just wait another few months, and their equity will be in black again. In fact, a majority of mortgages are 5-year fixed term. And there is not a single time frame in the recorded history of RE market, when someone lost his shirt over that time frame. Again, you are making stuff up.
House prices in Canada were static for over 20 years from 80s to 2000s.
House prices have never been static. Lots of short-term ups and downs. But what you and some other doomsayers here are trying to do is to present noise as a trend.
The entire Canadian market is just a train wreck based on speculation and fraud. Scary!
As evident from the stats, the market is doing just fine. Sleep well!
Last edited by BC Landlord on Feb 6th, 2024, 5:20 pm, edited 3 times in total.
BC Landlord
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Re: Home sales dropping because of higher interest rates

Post by BC Landlord »

northpoll wrote: Feb 6th, 2024, 1:25 pm
BC Landlord wrote: Feb 6th, 2024, 12:31 pm A property down the street from my place in Summerland just listed yesterday for 31% above the assessed value. And it's not alone. Anyone thinking that RE prices are coming down this year is either misguided, or delusional.
As you have said yourself, cherry picking examples does not constitute a trend. Nor does anecdotal "evidence".
Indeed, but it goes both ways. So, why can't we stick to official stats to eliminate any bias?
Mazdatruck
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Re: Home sales dropping because of higher interest rates

Post by Mazdatruck »

Investors flock to reserve land as Kelowna home, condo values slump

https://www.castanet.net/news/Kelowna/4 ... lues-slump
A new report by an international real estate search portal suggests the value of homes and condos in Kelowna has fallen rapidly in the past year. Point2 Homes analyzed data from several cities across the country and found that single-family homeowners who purchased in late 2022, lost an average of $98 a day, the biggest loss in B.C. and the third biggest loss in the country.
The report says that condo owners seem to be faring worse than single-family buyers. Kelowna condo owners who purchased in 2022 saw their values drop $60 a day in 2023. The average condo/apartment price in Kelowna was $502,800 two years ago, but Point2 says that fell to $480,800 last year. So what drove the diminishing values? Point2 says it’s a combination of factors including inflation, high interest rates, and for condos, falling demand.
Ouch
Short-term rental rules drive demand on WFN land
Business model now requires "doing business on the reserve". [icon_lol2.gif]

The mark of a truly sound business plan!
Jonrox
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Re: Home sales dropping because of higher interest rates

Post by Jonrox »

raft-cove wrote: Feb 6th, 2024, 3:09 pm Back in reality, as we wait for the LAG to really kick in, Tiff has warned that if Landlords keep playing RE hot potato, he'll set up another swift kick in the purse with a 0.25% rate hike. :smt045 Yes, rate HIKE.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOPS!!!!!!!!!!!
You predicted a massive drop from December to January.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOPS!!!!!!!
raft-cove
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Re: Home sales dropping because of higher interest rates

Post by raft-cove »

More novice comments from the extra leveraged Luddite landlords.



Average Sale price of detached boxes declined -11% from Dec 23 to Jan 24.



Stats posted long ago. Not surprising that ostrich-like XL mortgage holders still too busy singing the hot potato song to notice steep losses mounting. Tiff's pen and paper has them all losing sleep.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOPS!!!

The loudest leveraged speculators playing RE expert on Castednets forgot the all the basics, the simple high school 101 stuff. Spend a few minutes at the Cactus Club, you'll be shocked who's who and how much they make in commissions.

The one's losing are the dopes paying Pandemic prices for detached boxes.

Tiff didn't tell RE speculators that leverage magnifies capital losses! OOOOOOOOPS!!
VaxxNOTsafe.

Why are so many children suffering from MYOCARDITIS?

Okanagan Landlords are the Forrest Gumps of the Investment World.

Parabolic Real Estate values are NOT sustainable at 5% mortgage rates, Ask Tiff.
raft-cove
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Re: Home sales dropping because of higher interest rates

Post by raft-cove »

Well hold on then, ooooops!!!

"The average asking price for two-bedroom rent in the Central Okanagan has dropped for the fifth time in the last six months."

https://www.castanet.net/news/Kelowna/4 ... -yet-again
VaxxNOTsafe.

Why are so many children suffering from MYOCARDITIS?

Okanagan Landlords are the Forrest Gumps of the Investment World.

Parabolic Real Estate values are NOT sustainable at 5% mortgage rates, Ask Tiff.
1669
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Re: Home sales dropping because of higher interest rates

Post by 1669 »

raft-cove wrote: Feb 11th, 2024, 5:30 pm Well hold on then, ooooops!!!

"The average asking price for two-bedroom rent in the Central Okanagan has dropped for the fifth time in the last six months."

https://www.castanet.net/news/Kelowna/4 ... -yet-again
"According to Castanet classifieds stats, the asking price in January was $2,157 for two bedrooms. That was down from December’s mark of $2,204.

The two-bedroom average also dropped every month from August to November.

Meanwhile, the average asking price for a one-bedroom apartment increased from December to January. Last month’s mark was $1,589, which was up $19 from the previous month."

Considering that was in January, its not unusual, nor is $47 a whopping number. Wait until spring, when we get yet another influx of people moving here. Rents will rise even higher than last year.
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fluffy
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Re: Home sales dropping because of higher interest rates

Post by fluffy »

1669 wrote: Feb 12th, 2024, 3:35 am Meanwhile, the average asking price for a one-bedroom apartment increased from December to January. Last month’s mark was $1,589, which was up $19 from the previous month."
Some relevant background info:

According to CMHC guidelines, in order to afford an apartment to themselves, someone would need a yearly income of at least $60K, or $30/hr full time. talent.com reports the average wage in Kelowna to be $50K/yr, or $25.75/hour.
"The cleverest ruse of the Devil is to persuade you he does not exist."
- Charles Baudelaire, 1864
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Re: Home sales dropping because of higher interest rates

Post by BC Landlord »

fluffy wrote: Feb 12th, 2024, 6:54 am According to CMHC guidelines, in order to afford an apartment to themselves, someone would need a yearly income of at least $60K, or $30/hr full time. talent.com reports the average wage in Kelowna to be $50K/yr, or $25.75/hour.
Unless mentally challenged, no one needs CMHC to tell them what's affordable, or not for them. If latter, there are always different options, such as:

- Advance your earnings potential, or
- Get a roommate/partner, or
- Find cheaper accommodation, or
- Any combination of the above.

Affordability is a personal thing, thus not subject to any authority. Some people really need to grow up. :-X
Last edited by BC Landlord on Feb 12th, 2024, 11:51 am, edited 1 time in total.
Even Steven
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Re: Home sales dropping because of higher interest rates

Post by Even Steven »

fluffy wrote: Feb 12th, 2024, 6:54 amthe average wage in Kelowna to be $50K/yr, or $25.75/hour.
So, the average wage in Kelowna is higher than the living wage of $24.60/hour?

Cool.
raft-cove
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Re: Home sales dropping because of higher interest rates

Post by raft-cove »

BC Landlord wrote: Feb 12th, 2024, 9:41 am
fluffy wrote: Feb 12th, 2024, 6:54 am According to CMHC guidelines, in order to afford an apartment to themselves, someone would need a yearly income of at least $60K, or $30/hr full time. talent.com reports the average wage in Kelowna to be $50K/yr, or $25.75/hour.
Unless mentally challenged, no one needs CMHC to tell them what's affordable, or not for them. If latter, there are always different options, such as:

- Advance your earnings potential, or
- Get a roommate/partner, or
- Find cheaper accommodation, or
- Any combination of the above.

Affordability is a personal thing, thus not subject to any authority. Some people really need to grow up. :-X
[icon_lol2.gif]

Jumbo XL mortgages starting to get extra heavy for those who overborrowed to overpay.

Can read it in their comments.

Ask Tiff.
VaxxNOTsafe.

Why are so many children suffering from MYOCARDITIS?

Okanagan Landlords are the Forrest Gumps of the Investment World.

Parabolic Real Estate values are NOT sustainable at 5% mortgage rates, Ask Tiff.
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Re: Home sales dropping because of higher interest rates

Post by BC Landlord »

Even Steven wrote: Feb 12th, 2024, 11:51 am
fluffy wrote: Feb 12th, 2024, 6:54 amthe average wage in Kelowna to be $50K/yr, or $25.75/hour.
So, the average wage in Kelowna is higher than the living wage of $24.60/hour?

Cool.
The "living wage" is another abstract concept. Just like "affordable housing". And none of that "comes" to people, as some here are suggesting it should. They have to work toward it themselves. :biggrin:
raft-cove
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Re: Home sales dropping because of higher interest rates

Post by raft-cove »

Now things must be really dire if RE agents are petitioning aginst S-T rental legislation.................

https://www.castanet.net/news/Kelowna/4 ... ion#472152

Wonder what happens to PRICES when the whole herd of dopey landlords decides to "throw in the towel" en masse.

The servers at Eldorado say that this will lead to "Gap-Down" market action, with plenty of Underbids and midriff sales strategies. Big losses across the board. No more 6 screwdriver lunches on Tuesdays.

The portfolio of RE portfolios taking on some serious water and spring thaw hasn't even started yet!


Looks like Tiff really popped the RE bubble back in 2022.

But experts on Castednet loudly proclaimed that prices ONLY go up................ OOOOOOOOOOOOOPS!! [icon_lol2.gif]
VaxxNOTsafe.

Why are so many children suffering from MYOCARDITIS?

Okanagan Landlords are the Forrest Gumps of the Investment World.

Parabolic Real Estate values are NOT sustainable at 5% mortgage rates, Ask Tiff.
Jonrox
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Re: Home sales dropping because of higher interest rates

Post by Jonrox »

Are we supposed to listen to the message board expert who predicted a massive price drop from December to January, when in fact we saw a price increase?

OOOOOOOOOOOOOOOOOOOOOOOOOOPS!!!!

It's starting to feel like he's just the latest "broken-clock" expert who will constantly predict doom-and-gloom and when a dip finally happens, will say "I told you so"... seemingly ignorant of the fact that real estate is cyclical.

We've seen plenty of them come and go here over the years. Generally they're condescending and butt hurt over not buying years ago and are jealous of those that did. Crapping on homeowners and house prices makes them feel better about themselves.
raft-cove
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Re: Home sales dropping because of higher interest rates

Post by raft-cove »

Seems the Castanet RE experts so concerned with other's finances they missed the six-figure drop in average detached home prices month-over-month, yes, over $100k equity goes pooooooooof in just 31 days. [icon_lol2.gif]


Just the facts, yes, just facts already posted early Feb.

Frustration mounts as anticipated RE spring fling looks like a "Gap-down" FLOP.

OOOOOOOOOOOOOOOOOOOOOOOOOOOPS!!

Keep that midriff out of it, this is Tiff's Pain Train yer riding as equity evaporates month over month, the easy stuff, basic 101 RE lessons the kids all know.
VaxxNOTsafe.

Why are so many children suffering from MYOCARDITIS?

Okanagan Landlords are the Forrest Gumps of the Investment World.

Parabolic Real Estate values are NOT sustainable at 5% mortgage rates, Ask Tiff.

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