Home sales dropping because of higher interest rates

[BC Landlord]

Comparing nowadays sales with the frenzy levels of 21/22 is unfair. The current market is just going back to normal from that. It's alive and kicking. No collapsing, nor anything like that.

[Mazdatruck]

https://globalnews.ca/news/9668083/bc-m ... ries-poll/

‘Very scary time’: Poll finds 76% of B.C. mortgage holders worried about next renewal

Market sentiment is low confidence.

Poll also says 25% of mortgages are variable rate in BC.

I laughed at this :

Kurl said there is no sign of interest rates falling to their recent historical lows in the near future, meaning those who had banked on low payments over the full term of their mortgage could be in for a “rough time.”

We had real negative interest rates for a few years. You were being paid to borrow money. We are in this mess because of those historical lows! People think that if we get inflation low enough they are going to turn on the taps and let it rip and undue all this work calming down the economy. This is all about normalization now, they are not going to throw gas and a road flare on a bonfire they just put out. Don't hold your breath waiting for historical lows!

[BC Landlord]

We had real negative interest rates for a few years. You were being paid to borrow money. We are in this mess because of those historical lows!

We have never seen "negative interest rates", and always had to pay interest on mortgages. Low interest rates enabled so many young families to get into their first homeownership.

[BC Landlord]

While we are awaiting Okanagan stats, April's Metro Vancouver RE stats show an entirely different picture from some doomsday prophecies here ...

News Release
FOR IMMEDIATE RELEASE:
Prices continue rising across Metro Vancouver as home buyer
confidence returns

VANCOUVER, BC – May 2, 2023 – With listing activity remaining below historical norms,
home sales in Metro Vancouver1 have mounted a surprising comeback, rising near levels seen
last spring, before eight consecutive interest rate hikes eroded borrowing power and brought
home sales activity down along with it.

https://members.rebgv.org/news/REBGV-St ... r-2023.pdf

[BC Landlord]

And just as a sneak-peak into Kelowna's stats, expect the SFH benchmark in April just a bit shy of $1.1M, which is about 7-8% (!!) up from March.

[nucksRnum1]

And just as a sneak-peak into Kelowna's stats, expect the SFH benchmark in April just a bit shy of $1.1M, which is about 7-8% up from March.

Interesting to see the RE Ponzi scheme has uttered more breaths.....it's gonna be a doozy when it crashes and burns.

[BC Landlord]

Interesting to see the RE Ponzi scheme has uttered more breaths.....it's gonna be a doozy when it crashes and burns.

I've been listening about that "RE crashing" or "bubble bursting" for the last three decades. Just because someone kept hesitating and missed the boat doesn't mean the rest of the populace share that sentiment. Almost 70% of Canadians are homeowners.

[nucksRnum1]

Interesting to see the RE Ponzi scheme has uttered more breaths.....it's gonna be a doozy when it crashes and burns.

I've been listening about that "RE crashing" or "bubble bursting" for the last three decades. Just because someone kept hesitating and missed the boat doesn't mean the rest of the populace share that sentiment. Almost 70% of Canadians are homeowners.

So you think that RE should simply rise in perpetuity? That is what you call a sure bet. Even that is an anomaly within market education and purpose.

[Mazdatruck]

We have never seen "negative interest rates", and always had to pay interest on mortgages.

Real negative interest rates.

This is 2022 so 10+ years of it.

Right now BoC rate is 4.75% minus core inflation in April @ 4.3% means the REAL interest rate is 0.45%. We just came out of deeply negative rates and look at how our economy is doing. Dependant on free heroin like a rock stars groupie - our economy cannot survive without free money and more and more and more of it. Debt ponzi scheme.



With inflation factored in, it was cheaper to borrow money than to save it. Effectively being paid to borrow money, because if you let that same amount of cash sit in a bank, inflation would eat away more of it than if you borrowed it. Really have to play innocent not to know this!

Low interest rates enabled so many young families to get into their first homeownership.

Now they have 30-90 year amortizations

[BC Landlord]

We have never seen "negative interest rates", and always had to pay interest on mortgages.

Real negative interest rates.
....
With inflation factored in, it was cheaper to borrow money than to save it. Effectively being paid to borrow money, because if

You can try "factoring in" anything your heart desires to support your narrative, but that's not how interest rates are defined. Secondly, you are conveniently omitting that at the lender's bank, you don't get the same rate as the BoC's on your mortgage. It's usually higher.

[BC Landlord]

So you think that RE should simply rise in perpetuity? That is what you call a sure bet. Even that is an anomaly within market education and purpose.

That's what the market has been doing over the last 70 years. Moderately growing, with some short-term peaks and troughs. No different from economic growth in any other industry. And there are no indications that this will change in the foreseeable future, as evident from the current and historical stats. On a longer run (say 5+ years), no one has ever lost equity in RE. It's safe to buy any time. But boat-missers (aka the doomsayer crowd), will keep missing that boat, no doubt.

[Patron]

So you think that RE should simply rise in perpetuity? That is what you call a sure bet. Even that is an anomaly within market education and purpose.

That's what the market has been doing over the last 70 years. Moderately growing, with some short-term peaks and troughs. No different from economic growth in any other industry. And there are no indications that this will change in the foreseeable future, as evident from the current and historical stats. On a longer run (say 5+ years), no one has ever lost equity in RE. It's safe to buy any time. But boat-missers (aka the doomsayer crowd), will keep missing that boat, no doubt.

oh yes people have lost equity in RE, 1980's 21% was brutal for all homeowners back then

[BC Landlord]

oh yes people have lost equity in RE, 1980's 21% was brutal for all homeowners back then

And those who hung onto their property (the vast majority of homeowners) where back in the gain territory a few years down the road.

It's also interesting that you are calling interest rates from the 80's "brutal", but at the same time advocating for current rates to go further, much higher up. Why would you want that, ie to brutalize homeowners again? Envy?

[Patron]

sadly many Homeowners couldn't keep their homes back then, that was a very bad recession, unemployment rates were also very high so you couldn't even pick up an extra job to make ends meet but the market got flooded a few yrs later with many listings and rentals were a dime a dozen and affordable based on one's income

[nucksRnum1]

*removed*