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Canadian Realestate Magazine | 22 Dec 2014, 07:13 AM Agree 0
RBC chief says we could see prices drop 15 per cent… Ontario downgraded by Fitch… Chinese property buyers increasing in Washington State…
  • John Walter | 22 Dec 2014, 08:52 AM Agree 0
    15% drop???? How much does he want to bet? Lets put some money behind that mouth!!!!!
  • Jim Reid Broker/ Economist | 22 Dec 2014, 10:43 AM Agree 0
    Duh- the only criteria RBC gives for saying a 15% drop in house prices is coming is the Bank's desperate hope for interest rate increases to boost their profitability. I don't recall house prices dropping when rates soared past 20% back in 1979! It isn't interest rates that cause price declines.
    Anyway, there is no shortage of funds as banks and others improve their liquidity from newly minted money. So rates ain't going up other than in their speculative mind sets.
    Over supply and/ or reduced housing demand causes prices to decline. This is not going to happen in the GTA or the rest of Canada except in local markets where industries slow down or relocate and they fire their wage slaves. Since the USA arbitragers have manipulated the $CDN to fall, our industries have cheap goods to sell. There aren't going to be a lot of layoffs as the USA grows their economy on the backs of cheap/ discounted Canadian labour and material costs.

    Merry Christmas and a Happy and Propsperous Canadian New Year.
  • Wayne Ryan | 22 Dec 2014, 01:20 PM Agree 0
    I'm not saying that I agree with the RBC report but to say prices didn't drop in 1981 when interest rates jumped up past 20% is not accurate. In many markets prices dropped up to over 50% and a lot of people went bankrupt. I remeber it well because my interest rate went from 10% to 18.5% and it nearly did me in!!!
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