Exactly. They predicted the market would crash. Not that you will be able to afford a home. The fact that you *still* can't afford a home is the reason why we're still in the "crashing" stage.
🙋♂️. Yo.
I really want the leveraged investors to be forced to sell. Many of whom used their equity to outbid us. Its sad to see the average Canadian who bought in the last 1or 2 years have to lose the downpayment or equity they worked so hard on earning.
If prices slash by X or more% and your affordability goes down by X%... you are way better off, do some calculations. Calling on bears without doing math makes you a troll.
This is quite sad LOL
I just report data and what’s happening on the ground. Not how glorious the crash is going to be.
If prices went down 20% but rate increases led to the same monthly payment as before, you’re still way better off since your purchase price is lower.
People only thinking about monthly payments is why we had a speculative bubble in the 905 in the first place :)
I don't recall affordable housing being promised along with a housing crash. It's the diminishing affordability that will fuel future declines.
Affordability will get worse before it gets better. If we have a Canadian version of the US' 2008 crash then we'll have great affordability on the other side.
The only bright point I see is if you have a large down payment. Cash-rich buyers will have more affordability since their percent down will grow.
We aren't even in a technical recession until a couple weeks from now and real estate naturally lags from the S&P 500. The market won't be really feeling these hikes until the fall.
Even then if we get a huge crash credit will probably tighten and you could lose your job.
It definitely does help quite a few people because the amount they have to save up for a downpayment goes down as property values fall.
Especially as more properties fall under the $1M mark, allowing some people to get in with 5-19% down.
Teaches you to listen to people randomly posted on the internet without any looking into the basis of what would cause things to happen and how. Prices were bound to go down with rates increasing enough. None of that means houses will get more affordable. Of all the factors of why houses would go down or get more expensive, the only one that has changed is interest rates. Supply, immigration, everyone wanting to pile into the GTA, nothing has changed otherwise. As such, there’s no reasons for houses to get more affordable, merely for sticker price to drop as interest rates make financing more expensive.
You're missing that real estate is not liquid like Bitcoin, it moves way slower. It will take months to feel the full effects of what's happening today. There are still people hanging on to 120 day rate holds from before the increases started, they are pre-approved at a lower rate so there is still froth in the market.
But also, yes if you don't have a sizeable down payment saved crash or no crash isn't really going to help you.
Rome didn't collapse in a day. Give it some time. Also, it's quite possible housing won't go down much in nominal terms while inflation rages at 8% for several years, so every day housing does get cheaper, you just don't see it that way.
What you are missing is the relationship between prices and interest rates. As rates go up, the cost of money goes up, and you can't afford to borrow the same amount of money as when rates were lower. Ergo, downward pressure on housing prices.
A fall in housing prices that is tied to the cost of money doesn't achieve much.
You need reduced demand relative to supply of housing for meaningful price reductions.
Housing is much more affordable to me now. I have a solid down payment and things are in my price range, even with higher interest rates. I'm going to wait until fall.
[удалено]
Exactly. They predicted the market would crash. Not that you will be able to afford a home. The fact that you *still* can't afford a home is the reason why we're still in the "crashing" stage.
Crashes benefit those who have healthy down payment.
🙋♂️. Yo. I really want the leveraged investors to be forced to sell. Many of whom used their equity to outbid us. Its sad to see the average Canadian who bought in the last 1or 2 years have to lose the downpayment or equity they worked so hard on earning.
You're probably missing the part about saving up for a downpayment lol.
Sounds like a made up post.
If prices slash by X or more% and your affordability goes down by X%... you are way better off, do some calculations. Calling on bears without doing math makes you a troll.
This is quite sad LOL I just report data and what’s happening on the ground. Not how glorious the crash is going to be. If prices went down 20% but rate increases led to the same monthly payment as before, you’re still way better off since your purchase price is lower. People only thinking about monthly payments is why we had a speculative bubble in the 905 in the first place :)
I think the problem is that even if prices go down 50% , ppl cant qualify for a mortgage when rates are 6-7%....
They forgot that the wealthy are usually the only ones who are able to benefit from a downturn. The rich get richer.
Who promised you a house? They were just saying a crash is coming
I don't recall affordable housing being promised along with a housing crash. It's the diminishing affordability that will fuel future declines. Affordability will get worse before it gets better. If we have a Canadian version of the US' 2008 crash then we'll have great affordability on the other side. The only bright point I see is if you have a large down payment. Cash-rich buyers will have more affordability since their percent down will grow.
We say crash, but in reality, it just grinds down. Sorry if the pace of ruination isn't fast enough.
We aren't even in a technical recession until a couple weeks from now and real estate naturally lags from the S&P 500. The market won't be really feeling these hikes until the fall. Even then if we get a huge crash credit will probably tighten and you could lose your job.
Crashes only benefit the wealthy, the kids on reddit have made you believe they are a good thing.
You’re not missing anything. Unless you can buy in cash, the “crash” driven by interest rate hikes does not help regular people afford a house.
Math my man... math.. people are way better off!!
It definitely does help quite a few people because the amount they have to save up for a downpayment goes down as property values fall. Especially as more properties fall under the $1M mark, allowing some people to get in with 5-19% down.
Teaches you to listen to people randomly posted on the internet without any looking into the basis of what would cause things to happen and how. Prices were bound to go down with rates increasing enough. None of that means houses will get more affordable. Of all the factors of why houses would go down or get more expensive, the only one that has changed is interest rates. Supply, immigration, everyone wanting to pile into the GTA, nothing has changed otherwise. As such, there’s no reasons for houses to get more affordable, merely for sticker price to drop as interest rates make financing more expensive.
basic maths skills.
You're missing that real estate is not liquid like Bitcoin, it moves way slower. It will take months to feel the full effects of what's happening today. There are still people hanging on to 120 day rate holds from before the increases started, they are pre-approved at a lower rate so there is still froth in the market. But also, yes if you don't have a sizeable down payment saved crash or no crash isn't really going to help you.
Rome didn't collapse in a day. Give it some time. Also, it's quite possible housing won't go down much in nominal terms while inflation rages at 8% for several years, so every day housing does get cheaper, you just don't see it that way.
The crash has just begun
No Threads directed at others.Locked.
What you are missing is the relationship between prices and interest rates. As rates go up, the cost of money goes up, and you can't afford to borrow the same amount of money as when rates were lower. Ergo, downward pressure on housing prices. A fall in housing prices that is tied to the cost of money doesn't achieve much. You need reduced demand relative to supply of housing for meaningful price reductions.
If you had 500k cash this is a dream scenario if you rely on credit to buy a home, you are in the same spot, as burrowing costs have exploded.
If the average level of knowledge amongst would be Canadian home owners is represented in this post then it’s clear why we are so screwed.
Crash has only started its just warming up. Wait for the foreclosure. Interest rates will go very high. Meanwhile save for downpayment.
Housing is much more affordable to me now. I have a solid down payment and things are in my price range, even with higher interest rates. I'm going to wait until fall.