Could this be the pin to pop the housing bubble?
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Could this be the pin to pop the housing bubble?
Markets crashing, Cdn dollar getting slammed, mass layoff or at least reductions in consumer spending coming for sure. Combined with record levels of debt. Is this the perfect storm people thought would never happen?. Government handouts are not going to cover new car payments, kitchen renovation line of credit payments and visa bills so something will have to give no matter how low they make the benchmark rate. Or not? I've been wrong for the last 12 years but this feels a little different....
Thoughts???
Thoughts???
- TurkeyFarmYQX
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Re: Could this be the pin to pop the housing bubble?
Sadly I doubt it, now the BoC has cut interest rates to induce borrowing I'm sure things will actually get worse.
- rookiepilot
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Re: Could this be the pin to pop the housing bubble?
Yes, but not for the reasons people think.
Re: Could this be the pin to pop the housing bubble?
So you know something the rest of us laymen dont know?
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Re: Could this be the pin to pop the housing bubble?
If above normal unemployment occurs for a prolonged period there will be a decline in housing prices. People will be forced to sell or even go bankrupt, increasing the supply of housing while demand decreases.
- youhavecontrol
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Re: Could this be the pin to pop the housing bubble?
I like planes...
"I found that Right Rudder you kept asking for."
- rookiepilot
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Re: Could this be the pin to pop the housing bubble?
Yes.
Nice planes are likely to get cheaper.....
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Re: Could this be the pin to pop the housing bubble?
Housing will be the absolute last thing to go because unlike the US, you can’t simply walk away from a mortgage in Canada without being 100% liable for the difference between what you owe and what the banks finally flog it for.
Add the fact that you still need a place to live and qualified for the mortgage based on your employment and debt servicing ratio, you won’t ever see a US style bubble pop in Canada.
Foreclosure will increase and prices will go down, but for those who are upside down in equity and struggling it’s far better to keep going. It will be discretionary and frivolous spending that will be cut first with a spike in consumer proposals and liquidation of other assets.
Add the fact that you still need a place to live and qualified for the mortgage based on your employment and debt servicing ratio, you won’t ever see a US style bubble pop in Canada.
Foreclosure will increase and prices will go down, but for those who are upside down in equity and struggling it’s far better to keep going. It will be discretionary and frivolous spending that will be cut first with a spike in consumer proposals and liquidation of other assets.
Geez did I say that....? Or just think it....?
Re: Could this be the pin to pop the housing bubble?
No.
Private aviation might actually get a boost from this. There was already a surge in private jet charters.
Just the up's and downs of the world.
Don't Panic.
Private aviation might actually get a boost from this. There was already a surge in private jet charters.
Just the up's and downs of the world.
Don't Panic.
Re: Could this be the pin to pop the housing bubble?
I hope so. I've been waiting patiently for something to happen. Couple with low interest rates and my savings ready to jump in, I'm looking forward to my 1/2 acre rancher with detached garage for $500k thank you.
Re: Could this be the pin to pop the housing bubble?
I've been waiting on things for about 20 years...
- KenoraPilot
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Re: Could this be the pin to pop the housing bubble?
It will all depend on how dramatic the containments get (provincial/city quarantines and business closures like Italy) and for the duration of how long this last. The low interest rates + relaxation of the mortgage stress test in April could lead to a sellers market and give a huge bump to house prices. This situation is changing every day if not every hour of the day, so no one will know where this is going until we get there.
Re: Could this be the pin to pop the housing bubble?
The economy runs on faith and perception, much more than reality - and the government knows this, so they will do everything possible to ensure that the wheels continue to turn just enough to keep money moving.
Re: Could this be the pin to pop the housing bubble?
Agree %100, but will it be enough this time, we shall see. This is much harder hole to plug. Time will tell.
- RRJetPilot
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Re: Could this be the pin to pop the housing bubble?
LOLKenoraPilot wrote: ↑Sat Mar 14, 2020 1:12 pm It will all depend on how dramatic the containments get (provincial/city quarantines and business closures like Italy) and for the duration of how long this last. The low interest rates + relaxation of the mortgage stress test in April could lead to a sellers market and give a huge bump to house prices. This situation is changing every day if not every hour of the day, so no one will know where this is going until we get there.
FYI Even though the BOC lowered the overnight rate by 1% the banks are actually increasing rates due to risk. Also FYI CMHC just announced the proposed changes that were to take affect in April are on hold.
We are heading for mass layoffs and a recession. Expect the prices of homes to drop substantially in the next 2 years.
Re: Could this be the pin to pop the housing bubble?
Really, CMHC delaying the rule change, I did a quick search and couldnt find any info, source?RRJetPilot wrote: ↑Sat Mar 14, 2020 3:41 pmLOLKenoraPilot wrote: ↑Sat Mar 14, 2020 1:12 pm It will all depend on how dramatic the containments get (provincial/city quarantines and business closures like Italy) and for the duration of how long this last. The low interest rates + relaxation of the mortgage stress test in April could lead to a sellers market and give a huge bump to house prices. This situation is changing every day if not every hour of the day, so no one will know where this is going until we get there.
FYI Even though the BOC lowered the overnight rate by 1% the banks are actually increasing rates due to risk. Also FYI CMHC just announced the proposed changes that were to take affect in April are on hold.
We are heading for mass layoffs and a recession. Expect the prices of homes to drop substantially in the next 2 years.
- RRJetPilot
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Re: Could this be the pin to pop the housing bubble?
https://twitter.com/RateSpy/status/1238531124688826369nottellin wrote: ↑Sat Mar 14, 2020 3:57 pmReally, CMHC delaying the rule change, I did a quick search and couldnt find any info, source?RRJetPilot wrote: ↑Sat Mar 14, 2020 3:41 pmLOLKenoraPilot wrote: ↑Sat Mar 14, 2020 1:12 pm It will all depend on how dramatic the containments get (provincial/city quarantines and business closures like Italy) and for the duration of how long this last. The low interest rates + relaxation of the mortgage stress test in April could lead to a sellers market and give a huge bump to house prices. This situation is changing every day if not every hour of the day, so no one will know where this is going until we get there.
FYI Even though the BOC lowered the overnight rate by 1% the banks are actually increasing rates due to risk. Also FYI CMHC just announced the proposed changes that were to take affect in April are on hold.
We are heading for mass layoffs and a recession. Expect the prices of homes to drop substantially in the next 2 years.
https://twitter.com/ewsiddall/status/12 ... 3963970562
https://business.financialpost.com/pmn/ ... est-change
Gotta learn to google i guess.
- complexintentions
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Re: Could this be the pin to pop the housing bubble?
Sure, and the coronavirus won't have much impact on aviation.iflyforpie wrote: ↑Sat Mar 14, 2020 12:17 pm Housing will be the absolute last thing to go because unlike the US, you can’t simply walk away from a mortgage in Canada without being 100% liable for the difference between what you owe and what the banks finally flog it for.
Add the fact that you still need a place to live and qualified for the mortgage based on your employment and debt servicing ratio, you won’t ever see a US style bubble pop in Canada.
Foreclosure will increase and prices will go down, but for those who are upside down in equity and struggling it’s far better to keep going. It will be discretionary and frivolous spending that will be cut first with a spike in consumer proposals and liquidation of other assets.
Cutting frivolous spending sounds great, but it's irrelevant when you lose your income entirely and have a negative net worth.
Nearly Half of Canadians (48%) Are $200 or Less Away from Financial Insolvency
Last edited by complexintentions on Sat Mar 14, 2020 4:20 pm, edited 2 times in total.
I’m still waiting for my white male privilege membership card. Must have gotten lost in the mail.
Re: Could this be the pin to pop the housing bubble?
I googled cmhc news and none of that came up, sorry to inconvenience you but thanks for the links and tips , very interesting and a good move imo none the less.RRJetPilot wrote: ↑Sat Mar 14, 2020 4:11 pmhttps://twitter.com/RateSpy/status/1238531124688826369nottellin wrote: ↑Sat Mar 14, 2020 3:57 pmReally, CMHC delaying the rule change, I did a quick search and couldnt find any info, source?RRJetPilot wrote: ↑Sat Mar 14, 2020 3:41 pm
LOL
FYI Even though the BOC lowered the overnight rate by 1% the banks are actually increasing rates due to risk. Also FYI CMHC just announced the proposed changes that were to take affect in April are on hold.
We are heading for mass layoffs and a recession. Expect the prices of homes to drop substantially in the next 2 years.
https://twitter.com/ewsiddall/status/12 ... 3963970562
https://business.financialpost.com/pmn/ ... est-change
Gotta learn to google i guess.
Re: Could this be the pin to pop the housing bubble?
But I also see now CMHC is also trying to defer people's mortgage payments for up to 6 months, bending over backwards to keep this ponzi scheme going..