Comments by "firstandforemost87" (@firstandforemost87) on "How signs of lower interest rates could fuel Canada’s housing market rebound" video.

Are the homes overvalued? Ppl need a place to live. Demand is outpacing supply. I bought a place a year and a half ago at 3% before the rate hikes. Just recently the exact same floorplan in the same complex sold for almost 25% more than mine did, and this was after all the hikes when excellent credit and a solid debt to earnings ratio still only gets you 6.5%. This doesn’t look like a speculation driven bubble. This just looks like what anybody would expect would, and should, happen when you throw demand at a necessary good when the supply side can’t respond.
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I bought because it is cheaper than renting. Parking an RV on a campground pad is more expensive than the mortgage. That ‘pile of sticks’ you’re referring to is also known as shelter, and it is pretty high up on our hierarchy of needs…
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@butwhytharum Many are using rentals as pensions. Plenty of my landlords over the years were native Canadians doing just that. Real estate has been a safe bet in the long term, and has the added benefit of revenue generation in the form of rent. If they’re worried, why don’t they just liquidate while prices are high and reinvest the equity somewhere?
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@butwhytharum Its good for cash buyers, in theory, but prices didn’t fall where I am. They actually increased. Still, could be argued that they’d be higher, and will likely spike again once rates fall. I don’t anticipate a crash. Demand is high because of ppl looking for homes, and not because of out of touch speculators. Unless immigration os kneecapped, or there is some huge revolution on the supply side, this is the new normal.
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@butwhytharum Well yea, if you are putting your kid in the house and not having somebody else cover your costs, then sure, but that is totally different from a ‘greedy’ person realizing that they can take on some debt but have somebody else service that debt plus some.
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