So far are there any stats of what the new rules have done to the market? It's only been two weeks but I suspect the bidding wars are slowing dramatically, and over time if the capital appreciation slows there will be a sell off of speculation rental properties which aren't going to make the same returns as before. I'm curious when that will happen though.
I'm currently selling a place. we had a bidding war and the offer we picked fell through due to the new mortgage rules. Luckily a new buyer has come in at the same price as the first offer. Crossing my fingers that they also don't fall through.
I don't have any official stats though.
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That's big deal. i wonder if they ran that by the govt first. Very rare for the banks to move their prime rate other than in response to a change in the Bank of Canada rate.
That's big deal. i wonder if they ran that by the govt first. Very rare for the banks to move their prime rate other than in response to a change in the Bank of Canada rate.
This is their mortgage prime rate, not the lending prime rate. They are different.
We accepted an offer on our townhouse 48 hours after listing a few weekends ago. Seems like people with pre-approvals are moving quickly. Didn't have a bidding war, but there was multiple offers and we got within 2% of ask.
DLC (Dominion Lending Centre) President Gary Mauris speaking in parliament yesterday on the recent government changes, and the negative trickle-down effects. Some really interesting points brought up; a lot of which I've been thinking from the start.
The industry as a whole understands what the Government was trying to do, but by not consulting anyone (except the big banks), they've (surprise surprise) created an unequal playing field, and have created some unintended consequences that could have been reduced or eliminated if proper consultation would have been done.
28 minutes long, but well worth the watch if you have the time. At around 11 minutes, a Jennifer O'Connel (Liberal MP) starts asking Gary some very...interesting questions. She seems quite out of touch:
Also a little piece from AMBA (Alberta Mortgage Broker's Association). Adil Mawji (past AMBA President) is a good friend and colleague of mine:
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A little bit of a side topic, but Toronto housing prices overall have totally skyrocketed. I'm in the market for a relatively cheap condo and because there is no inventory at the moment anything that gets put on the market gets gobbled through a bidding war. Tuesday I was supposed to put in an offer for a $335k condo, which my agent said was more than it was probably worth, and the damn thing sold for $420k. Since around October the prices for these condos have gone up roughly 15%. I don't know how the government doesn't institute heavier taxes on owning multiple properties, because right now it's impossible for a single earner to buy their first place.
A little bit of a side topic, but Toronto housing prices overall have totally skyrocketed. I'm in the market for a relatively cheap condo and because there is no inventory at the moment anything that gets put on the market gets gobbled through a bidding war. Tuesday I was supposed to put in an offer for a $335k condo, which my agent said was more than it was probably worth, and the damn thing sold for $420k. Since around October the prices for these condos have gone up roughly 15%. I don't know how the government doesn't institute heavier taxes on owning multiple properties, because right now it's impossible for a single earner to buy their first place.
Pretty sure this is because of foreign buyers abandoning the vancouver market and buying in toronto.
It's actually not entirely off topic, as the DLC President touches upon how innefective the changes have been for the two markets in which there is the most concern: Toronto and Vancouver. The only somewhat effective changes have been those implemented by the provincial BC government to help cool the Vancouver market.
In a country so diverse and so large, there needs to be some regional considerations. One province can be in a boom, while the other is in a bust.
I watched this, Jennifer O'Connell doesn't know what shes talking about. She's there to put forward a position given to her and has writing in front of her, but she doesn't understand what she's talking about, which becomes very obvious in a few minutes.
She is embarrassing as an MP based on this video.
I'm not even for or against what she's advocating, because I haven't put a lot of thought to it, but here is an example of someone who should have but did not put thought into it, and she is in a position of influence.
Edit: Wow, she has a degree from U of T. Would not have thought that based on this video.
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Entirely possible, but I really wonder how many foreign investors make up the pie?
In Vancouver, they seemed to have limitless funds. Apparently in China you have people setting up real estate funds and large numbers of people pooling money into them.
The crackdown is occurring on both sides now though. The Chinese government is not happy with the amount of money pouring out of the country. It's hard to say how much of what is currently going on is from Chinese investors, but a year or so ago, a loooot of it was coming from China in Vancouver.
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I watched this, Jennifer O'Connell doesn't know what shes talking about. She's there to put forward a position given to her and has writing in front of her, but she doesn't understand what she's talking about, which becomes very obvious in a few minutes.
She is embarrassing as an MP based on this video.
I'm not even for or against what she's advocating, because I haven't put a lot of thought to it, but here is an example of someone who should have but did not put thought into it, and she is in a position of influence.
Edit: Wow, she has a degree from U of T. Would not have thought that based on this video.
Isn't that unreal?! She is completely clueless. Like you said, it's quite obvious she had an agenda and questions written down, but she has no idea what she's reading. I watched that in disbelief. You can see it on the guys' face right next to her as she's speaking; he looks as if he's about to start laughing as she stumbles through her question. Clearly in way over her head.
If you don't want to watch the entire video, I encourage you to at least view that portion. I think it starts around the 14:00 mark.
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