Posthaste: Bottom still a ways off for Canada's housing market, says RBC

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Since the Bank of Canada began hiking interest rates, home sales have fallen 31% and benchmark prices almost 6% nationwide. Find out more

Yesterday brought the latest numbers on Canada’s housing market, confirming that the pandemic boom is over.in July, the fifth month in a row of declines. Benchmark prices were also down 1.7% from the month before.

The Bank of Canada’s 100-basis-point hike in July “threw ice-cold water on the market,” said Hogue, as it disqualified some buyers from getting a mortgage and shrank the size of the mortgage for others.Article contentPotential buyers are holding back in case prices drop further, while sellers are debating whether they too should wait until the market turns in their favour, Canadian Real Estate Association chair Jill Oudil saidNew listings declined 5.

In the Greater Toronto Area the composite MLS home price index has dropped 7% in the past five months.

 

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It's going to get way worse for homeowners who are having to renew mortgages in the next year or two. Interest rates are going to double from their current rates before they start to fall and when they do, the house poor will become house-less.

Nope. Once pricing drops a little, the buyers will rush back into the market.

I have one neighbour who overpaid by about 40% in the past year. Now she’s blaming the neighbours, police, and mayor because the neighbourhood doesn’t meet her expectations. Some people got royally screwed. Very sad and unnecessary.

Pressure hasn't even started yet...Wait for the layoffs

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Posthaste: Bottom still a ways off for Canada's housing market, says RBCSince the Bank of Canada began hiking interest rates, home sales have fallen 31% and benchmark prices almost 6% nationwide. Find out more
Источник: financialpost - 🏆 7. / 85 Прочитайте больше »