Posted on: 05-10-16 11:31:18
I guess this time, this new regulation will really plug the unprecedented dubious rally of real estate.
Vancouverites have already just sigh-ed up and it is time for GTA folks.
I have an investment house too bought in a bubble but I would still be happy if this bull is restrained someway to pave the road for our next generation to dream a natural life.
Well, feelings aside how you guys think would impact what we see now? I wouldn't be surprised if new loopholes are unearthed by the commerce revolve around this.
Are these houses set for a correction now ? I can see that the interest rate is here to stay for sometime.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
I don't expect any impact by the new regulations as long as there is no major change in the mortgage policy. Our highly skilled mortgage brokers are there to find out some way around.
On the other hand, media is projecting that Vancouver housing market is on the downward slope. It is not true. The sales numbers are down 30 to 40% - year over year BUT the house prices are still going up 30% year over year comparison. There are less buyers in the market but the sellers are not only holding up the high prices but pushing them upwards.
Unless the federal govt takes concrete step to curb the price by making the CRA's notice of assessment mandatory for mortgage income, I don't think this mad race will stop.
-----------------------------------------------------------------
A Delhite in Toronto
Ok, here's something from the Vancouver market. Even though the sales are down, the prices have stood firm (barring some negligible percentage points down to the tune of 0.5%). Houses are still listed for as high as $900k in my neighborhood, which is about 40kms away from the Vancouver proper/downtown and in a far away burbs. Agree, they are not selling as fast as in the past. The trend I have also noticed - the owners are not reducing the price and rather taking their listings down if the house stays for more than a month. It's happening all across Metro Vancouver. The changes that Govt. has put forth are indeed showing the signs, but I don't think it has impacted the prices in any way.
Not everyone is at the comfortable stage while selling, these are seller who will initiate the run then the rest to follow.
The madness can not sustain, the foreign investment just drove the market for just a reasonable portion, the rest Im sure was driven by borrowing against the primary home.
I don't expect a freefall like US but the grip will relent.
Quote:
Originally posted by febpreet
Ok, here's something from the Vancouver market. Even though the sales are down, the prices have stood firm (barring some negligible percentage points down to the tune of 0.5%). Houses are still listed for as high as $900k in my neighborhood, which is about 40kms away from the Vancouver proper/downtown and in a far away burbs. Agree, they are not selling as fast as in the past. The trend I have also noticed - the owners are not reducing the price and rather taking their listings down if the house stays for more than a month. It's happening all across Metro Vancouver. The changes that Govt. has put forth are indeed showing the signs, but I don't think it has impacted the prices in any way.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
The sales after September will slow down as a normal process, Schools start around this time so people do not want to relocate anymore. Should not be considered as impact of policies be it Vancouver or Toronto.
In my view - Correction will happen , but it will not be felt. Going by the changes in the policies, an example of possible correction will be that instead of 20% Y2Y price rise it will comedown to 8-10%.
