House price colapse starting

[Carvher]

It seems to be starting. Many more homes in my neighborhood in Sauga up for sale. Prices not consistent, all over the place.
Houses that were up a few weeks ago have dropped asking price by 2 to 300,000 thousand. Interest rates still have a ways to go.

This could get interesting. Prices should fall to below pandemic price. That is a significant fall from what people are asking now.
People selling now should realize what's happening because stubbornness will cost them money.

 

[stinkynuts]

Prices will probably fall 15-20% by this time next year. Still way over priced.

 

[bestman007]

Prices will probably fall 15-20% by this time next year. Still way over priced.

Hope you're right. I have been sitting on my hands for more than a year after going all USD cash, knowing that the equity market would correct.

My focus all along was to invest my gains in real estate if the opportunity came... waiting patiently.

 

[stinkynuts]

 

[Ponderling]

I am mortgage free.

I have lived through still house prices and a sink of prices between 92 and 95 when I and two other pals jointly owned and occupied a new build in Sauga.

There will be real estate speculators burned in the rising interest environment. Too bad. I am invested in equity market and am used to losing money at times.

But I do feel sorry for young families that bought to live in the house and raise their clan who are likely to be wiped out in this unfolding environment.

 

[Happyhomer]

I sold two condos and a house in mid-2020. One of the condos was bought by the renter and the other condo by the other renter’s family. I had these condos for 10+ years and it was a good exit timing.

I still have three condos and a house which are all rented. Hopefully, the pullback is only short-term.

 

[Goodoer]

Is it really a collapse for someone who bought 5+ years ago? I feel for the people that just bought, but technically they can afford the mortgage and can afford to hold on until the prices move higher...

Mortgages, rather what is remaining, for those people are the equivalent of a fancy car now...

 

[Steve_Stevens]

I am mortgage free.

I have lived through still house prices and a sink of prices between 92 and 95 when I and two other pals jointly owned and occupied a new build in Sauga.

There will be real estate speculators burned in the rising interest environment. Too bad. I am invested in equity market and am used to losing money at times.

But I do feel sorry for young families that bought to live in the house and raise their clan who are likely to be wiped out in this unfolding environment.

Mortgage free rules.

 

[Goodoer]

Mortgage free rules.

It really does... I have two 25+ year long friends... One just became mortgage free. Zero stress. Lives in Toronto. The other is maxed out to the tits, left the GTA for a lakefront money pit... Pure stress. I hope his marriage survives. His wife is a Saint and trusts in him. I can see her patience wearing thin... (it stresses me out as I love them both dearly).

I'm in the middle. I have a modest mortgage on a GTA house that is probably truly too big for my needs (it is much larger than the house I grew up in).

 

[Mr.Gr33k]

People who bought in 2020-2022 @ peak prices and extremely low prime rate will have mortgage renewals. I doubt BoC will lower rate to what it used to be. Many people won't be able to afford their homes at a new rate or qualify for mortgage renewals and will be forced to sell. Then we'll see a big price drop.

 

[Pleasure Hound]

It's about goddamn time.....

 

[stinkynuts]

People who bought in 2020-2022 @ peak prices and extremely low prime rate will have mortgage renewals. I doubt BoC will lower rate to what it used to be. Many people won't be able to afford their homes at a new rate or qualify for mortgage renewals and will be forced to sell. Then we'll see a big price drop.

They should have five-year terms, so not for another three years.

 

[Buster_Hyman]

They should have five-year terms, so not for another three years.

I agree. People probably have three to five year terms so two years from now if mortgages are still up there we are going to see corrections.

 

[nikki1]

Sorry, but new to the Canadian market. Are 30 year fixed mortgages no longer the case, as the above comments seem to suggest most have 3 to 5 year terms before subject to renewal?

I would think those who are sitting pretty locked into a 30 year fixed would be in no rush to sell.

Just trying to understand the playing field as we gauge an opportunity to buy. As usual, all the agents we talk to say, it's always the time to buy smh.

 

[nikki1]

In this high interest rate environment, it also seems only possible to port your mortgage as a way to "keep" the lower rate.

Just speaking from US perspective, is it not allowed in Canada for seller financing options or assuming of owner's mortgage?

 

[NiceToMeetYou]

Sorry, but new to the Canadian market. Are 30 year fixed mortgages no longer the case, as the above comments seem to suggest most have 3 to 5 year terms before subject to renewal?

I would think those who are sitting pretty locked into a 30 year fixed would be in no rush to sell.

Just trying to understand the playing field as we gauge an opportunity to buy. As usual, all the agents we talk to say, it's always the time to buy smh.

Canadian banks do not offer 30 years fixed rates in Canada. They offer 1 - 5 years fixed rates and require a consumer to renew the mortgage with different or the same rate every 1 - 5 years. They also offer variable / floating rates.

Banks in Canada are taking advantage of consumers in Canada and their mortgages’ terms here are suck. That is one of the reasons why Canadian banks are making huge profits year after years.

Mortgages’ term with American banks in America are much better than here for consumers. I suggest you buy homes in America instead of Canada if you can manage. I used to have a mortgage in America and I also have a mortgage in Canada right now. So I can compare the mortgage’s terms between the Canadian and American banks.

 

[nikki1]

Be greedy when others are fearful.

Any way to find out situations where you have a flipper in a bind with hard money loan that is coming due?

How do we look up hard money lenders in our local deed records for their deed of trusts so we can track the loan maturity dates?

 

[nikki1]

Time to buy a house yet? Lol

 

[Goodoer]

Be greedy when others are fearful.

Any way to find out situations where you have a flipper in a bind with hard money loan that is coming due?

How do we look up hard money lenders in our local deed records for their deed of trusts so we can track the loan maturity dates?

The people with money already have access to this information. They are probably the lender’s lender.

 

[nikki1]

The people with money already have access to this information. They are probably the lender’s lender.

Ok, but how do we common folk get access to this info?