Quote:
Originally Posted by Johnny199r
Our apartment lease is up this year, and my spouse wants to buy a house and have her mom move in with us as she needs quite a bit of help and my spouse is paying for her mom's apartment now. So it makes sense financially to be paying for 1 mortgage rather than 2 apartments.
I'm really interested to see what effect these rate hikes are going to have (I'm not in Calgary). Are prices going to drop 10% by the end of the year? Are the simply going to level off and not increase?
It seems like demand is still sky high for SFH. Surely rate hikes will limit the borrowing power of some, but not all of those out looking.
I'm keeping my eye on Thursday's budget to see what other rumored measures the Trudeau gov't actually introduce to cool the housing market. I've read lots of things, but I don't believe he will do anything to mess with all the equity his potential voters have accrued.
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I honestly don't think interest rates will make that big of a difference in any of the hot markets. All increases in interest rates do is price the bottom sector out, but the bottom sector is already priced out of the hotter markets in Canada.
There could be some effect on the fringe areas where bidding wars are taking place.
The lack of supply is just so extreme, that it will take something far more major than 1-2% increase in interest rates to have any significant effect on the market. I've ranted about the causes a few times, but you have the largest generation ever (millennials) entering the market and the second largest generation (baby boomers) don't seem to bet going anywhere. On top of that you have 300k new Canadians arriving every year. Every city in Canada has harsh zoning laws and is surrounded by valuable farm land that can in no way be replaced elsewhere, in one of the largest and emptiest countries in the world. There's no room for the market to let up. That would require actual physical space.