Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canada’s Recent Real Estate Buyers Weren’t Stress Tested For Mortgages Rates This High
Canada’s real estate industry complained about mortgage stress testing being too burdensome. However, the current data shows it may have been insufficient. BMO Capital Markets warns a significant share of borrowers weren’t stress tested for rates this high. They don’t see it as a problem at this point, but there isn’t much more of a buffer for many recent home buyers.
[Video] A Chat w/Ex-Bank of Canada Governor Stephen Poloz On Real Estate, Inflation, & Policy
Former Bank of Canada governor Stephen Poloz dropped by virtually to chat. The team asks him about home prices, the upcoming recession, and inflation problems. He also tells us about the Fourth Industrial Revolution, which is about to change everything. Not always for the better, in the short-term.
Toronto Saw Zero New Single-Family Homes Sold, Condo Prices Trim $30k In A Month
Greater Toronto new home sales were largely bought by real estate investors. Now that rates are surging higher, they’ve completely dropped out of the market. Single-family home sales across Greater Toronto dropped around 90%. Home prices are falling as inventory reaches healthier levels. However, new project launches are tapering, meaning it’s unclear how long this can last.
Toronto Real Estate Prices Down Over A Quarter-Million Dollars, Nearing A “Crash”
Greater Toronto real estate prices have finally made a year-over-year plunge lower, and it’s going to have a significant psychological impact. The price of a typical home across the region fell to $1,098,200 in October, down 1.34% ($15,600) from last year. This was the first annual decline in four years, and prices are now down 17.3% (-$236,800) since peaking in March 2022. People had been dismissing price declines with “at least it’s higher than last year.” That’s no longer the case.
Five Important Market Insights Former Bank of Canada Governor Stephen Poloz Shared
Saving our Stephen Poloz interview for another time? Here are five of the most important insights he shared.
Many Canadians have been greedy and selfish. When selling their homes they charge very high prices. They don’t care about other people. They learn how to flip houses from the Hong Kees. Now they deserve this mess. Hope the real estate crisis will get worse and more greedy and selfish people will go bankrupt.
Therefore you are going to sell your house under market, I’ll buy it..
Mean comment. Why is it still there? Did “Rapture “ expect people to donate their biggest asset to this mean – spirited character. Directing his loser attitude at the wrong people. People, move forward, keep your chin to the grindstone and innovate by educating yourselves financially, working smart, and taking advantage of greatest country in the world. Think for yourselves. I know it’s hard to be an individual.
Did people think house prices could go up forever and the government could print money forever with no consequences ? Are people in Canada totally financially illiterate ?
YES, THEY ARE.
Fear to Greed Ratio was towards high greed hence price went to the roof. Now, we are approaching towards neutral.
Market crash when fear gets enter into market, we are not yet there but likely in mid 2023. Surplus printed money still available in market
Enjoy your overpriced hamster cages in the sky surrounded by other nosey hamsters.
Duddy, a man without land is nothink.
There were many first-time home buyer bought their home at all time high, and believed BOC and chose variable rate. I don’t think these people are “greedy”. They just want to settle into their own property. and yet, these people were hurt the most, because their assets and income are mostly very limited. Don’t worry about the investors, they had enough resource to overcome this period..