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Canadian Realestate Magazine | 26 Nov 2014, 08:00 AM Agree 0
Interest rate rise in May next year? The OECD believes so... Forecasters predict housing slowdown in 2015 but still fear crash… Is fracking good news for the housing sector?... US house price growth higher than a year ago but slowing…
  • Jim Reid | 26 Nov 2014, 10:46 AM Agree 0
    If these remarks by the OECD are meant for Canada and not necessarily the USA, I must disagree with them. In recent times they also bought into the Canadian housing price bubble nonsense as well.

    During the past 50 years, Canada has been quite capable of going its own way during international market upheavals and economic downturns. These foreign agencies and so called experts do not have an accurate understanding of our economy and assume the factors that produce our statistical data are identical to the American factors. This is nonsense as we have our own types of housing to deal with our climates and we have our own immigration pool that constantly is growing at a rate 50% to 100% faster than our normal housing sector.

    The global monetary system is tight as a violin string and it may have to be replaced or reinforced within three years. Market prices on foreign stock exchanges are so leveraged that a major correction is inevitable as well. Thus more QE will be needed to keep everyone else from tanking.

    The financial sector greedily wants more income from higher interest rates, but they are already gouging borrowers. My son needed a car mortgage and the CIBC wanted to charge him 10% interest! Hopefully our monetary authorities will keep them from further interest rate rises until a new round of QE forces rates back down.

    US arbitragers have forced the $CDN down 10%, so it is obvious we will see prices rise 10% in essential goods and services here. This is not inflation, it is the USA creating cheaper imports to help them become more productive and profitable.

    The European Trade Deal and the Trans-Pacific Partnership will stimulate some economic activity in Canada, but not significantly for another year or two.

    It is time for Canada to ignore these ignorant naysayers and to get down to the basics of building a new economy to take advantage of the trade opportunities emerging in foreign markets. We have amazing potential if only our leadership would stop hanging on to the coat tails of the giant economies and get down to creating some flexible supply chains with the many smaller nations who would want to partner with us.
  • Paipu | 26 Nov 2014, 12:38 PM Agree 0
    Well said. Canada is still yet to realize the resources what it has. Like the baby doesn't know it's beauty. The government should stop entering into all this war support nonsense and start building a better, stronger economy by using the best knowledge of immigrants rather that asking them " Do you have a Canadian Experience? ", Invite the businesses who want to make a competitive trade with us and attract the wealthy countries on investment here. As long as the government deal with wars, it'll bring no hope in economic stability in the country and eventually affect each and every one here.
  • Andrew | 26 Nov 2014, 03:55 PM Agree 0
    The naysayers have been predicting a crash for the last 5 years and will continue to do so because one of these years they may be right. Everybody know that real estate has its own up and down but that could happen after 5 - 10 years after price appreciated 25 - 50% ? So buyer may not be so smart to hold on buying.
  • ally | 28 Nov 2014, 06:42 AM Agree 0
    I read all comments with care and interest, and I like the optimistic ones but I fear a correction if not a crash is in order. I just sold a house in BC and I am looking to buy one in Quebec. The market is all over the place, no one knows the true market value of any immovable. agents take shots in the dark, always above reasonable asking prices so to have the listing. Seller stare at the ceiling during negotiations without a leg to stand on, buyers are pushing the sellers into negative returns, NOTHING sales easily, not even rare and desirable properties. Then you see them invariably dropping the price by 100,000 at the time. any offer we make is met with incredulity and disagreement often based solely on personal opinion. This market will not stabilize until seller and buyer are allowed to find a middle ground. The municipality of Montreal has raised the house values to increase revenue needed to remedy the Mafia ad corruption losses. An immovable that was valued at 6, 3 years ago is not valued and taxed at 8 or 9. The seller is in a dream world about the value of the immovable but the buyer has to look at it as an investment, and it does not make sense. Too many other opportunities are available and bring greater and less risky return.
    In Montreal at the present time one is better of pinching his nose and renting for the next two years.
    It is dead against my way of thinking but I am old and obsolete. Landed gentry is a thing of the past, a house for residence is no more than a car in term of investment. If you like it and want to live in it, buy it, bargain hard and drive the price down, you will have no competition and even the snobbiest of sellers will come to the table. Make no mistake though, you will see a return in 20 years, no sooner. That maybe OK if you just use the house for yourself but remember to make our living elsewhere.
    I am buying real estate in Europe where the market is protected by a semi state run banking system under permanent scrutiny by the ultimate disciplinarian school master, Mrs. Angela Merkel. She has too much at stake to let my investment drop too far.
    Canada remains the best country in world I know of. But both the banking system and the real estate market are dragging in the style of an old colony of mother GB. It is time Canada stand proud, and we do for good reasons, and cut all ties with the old country. I am a stanch loyalist and monarchic but I can see that the crown is now little more than a Broadway production. Too bad but true.
    So rent in Canada and live in Canada. Buy and invest in Europe and not least, give money to education. Thinking and education we ll save us not ideals or fanaticism or extremism, let's just think before we act. Do not forget that it all started going down hill for average Joe when the big guns decided that was is good business and went war mongering all over the middle east and Africa.
    Have a great weekend. Ally
  • Mike B | 01 Dec 2014, 07:05 PM Agree 0
    Oil prices are down significantly and will stay low for awhile. Therefore, inflation will be kept in check, and probably drop, hence interest rates will not rise.
  • alexiscooper5 | 04 Dec 2014, 05:58 AM Agree 0
    Despite spiking house prices, ownership became slightly more affordable in the third quarter, says RBC
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