Home sales dropping because of higher interest rates

[Merry]

We’ve been considering relocating to a mid size town further north, mainly because we have family there. Selling our home here will likely not be difficult, but finding something worth buying there is nigh on impossible.

Despite there being lots of homes on the market there, and sales being down, the prices are ridiculously high. Most of the homes are older, and they look it - dated kitchens, dated bathrooms, dated floor coverings, etc. And the majority are in need of new furnaces, new hot water tanks, new roofing materials, etc. In short, the homes have not had much spent on them over the years, yet the owners are looking for top dollar prices.

We did the math, and even if we get a good price for our “turn key” home, by the time we pay to move there, buy an overpriced house, and spend a small fortune fixing it up, we probably won’t be much better off financially than if we stay here. But our home won’t be anywhere near as nice, and neither will our location.

Not sure why folks in small northern communities think their outdated homes are worth so much, but we’ve been following their RE market for almost a year and haven’t seen much of a price drop. So, we’ve decided to just stay put unless the situation changes.

[Babba_not_Gump]

Not sure why folks in small northern communities think their outdated homes are worth so much, but we’ve been following their RE market for almost a year and haven’t seen much of a price drop. So, we’ve decided to just stay put unless the situation changes.

Merry, much of it is brought on be home owners in the Lower Mainland selling and pocketing one or two million.
They're tired of the rat race, traffic, crowds, and now they're looking elsewhere. They check out smaller communities, such as Quesnel, and throw down an offer. More often then not, they are competing against others just like them.

When we sold our house last year, there were a number of people bidding on it, most from the Lower Mainland.

[Mazdatruck]

Our system isn't designed for these higher rates please save us

The system :

[Mazdatruck]

*removed*

[BC Landlord]

Nobody is downsizing because when they sell there is very little inventory and prices are jacked to the brim.

The stats would disagree with you. Inventory is actually going up ...

Here are inventories for SFH in Kelowna:
Apr 2021, 450
Apr 2022, 670
Apr 2023, 896

[Mazdatruck]

Stats would disagree with you. Inventory is actually going up ...
Inventory for SFH in Kelowna:
Apr 2021, 450
Apr 2022, 670
Apr 2023, 896

BC as whole :



https://www.bcrea.bc.ca/economics/housi ... dashboard/

[BC Landlord]

As far as the inventory goes, all this graph ^^ is showing is the craziness (i.e. buying frenzy) of 2021-22, and this year's recovery.

[rustled]

Plenty of "for sale" and "sold" signs in our neighbourhood.

[Even Steven]

2019 was a crazy year for real estate. We bought our dream home in 2019 before the craziness. Comparing to that is kinda cherry-picking.

Inventory is not low right now. It's just not record-breaking.

[Patron]

not surprised reading this article 48% of leveraged condo investors are now losing money on their properties. But for the last 16 yrs of super low interest rates made a lot of money for a lot of investors, so who do you think will break first ??

BOC and lower the rates ? trudeau slowing down immigration and fixing the housing crisis for the people who already live here, and will Canada stop treating our RE Market like it's the stock market ? we got addicted to cheap debt and we were encouraged to do so and now we can clearly see the price of it all..everybody wants never ending price increases for RE but is it really sustainable for the future

More than half of GTA condo investors losing money on properties

https://globalnews.ca/news/9729967/gta- ... ing-money/

[Mazdatruck]

As far as the inventory goes, all this graph ^^ is showing is the craziness (i.e. buying frenzy) of 2021-22, and this year's recovery.

Inventory is trending down.

Are you standing on your head?

In order for this to be a recovery the chart would be going up.

[Mazdatruck]

Ouch, another hike. Most likely another one too coming up.

Nobody has ever tackled inflation without the interest rate matching the peak core inflation.

We're still well below that number.

Remember when some people were talking about a rate cut in June?

[Mazdatruck]

Residential investment has plunged -15% on an YoY basis and is now down -20% relative to Q1 2022.

Steepest contraction since the 1990’s.

[Mazdatruck]

The monthly mortgage payment needed to purchase a typical home in Canada has risen by $255 or +8.3% since March.

[Even Steven]

Well there goes my fun money...