While I share your concerns people need somewhere to live and any house that could be an alternative to renting will keep its price. Taking in a border, renting out the basement, moving in with friends or family there is no other way when there are not enough houses. So people with a high end, especially old and energy inefficient will struggle, but modest 3 BedRm homes, especially with a basement apartment will cover the expenses, besides the owner probably cant afford to move, even if they could find a $3000 a month Apartment plus utilities... There is a small inventory of homes for sale and anyone who bought 3-5 years ago is up a decent amount..
Who could be hurting today are people who bought and has a $million+ floating rate mortgage from day 1, like a friend of mine, she has an enormous 100+ year old home, with a large floating mortgage and the rise from 2%-6% is a major problem.. Its on 28 acres, a bit rural and getting tenants is just not possible. Maint and energy are also major expenses.
Watch out !
The value of our houses, the most important asset for most, is going down and yet
our generously bonused Central Bankers are raising interest rates
It makes no sense . Confidence is fragile.
Does Ottawa ever talk to ordinary people ?
As presaged by @DonLuskin US Inflation decelerated last month.
wsj.com/articles/get-r…
What breaks this doomloop? Lowering rates and kicking the can?
The chart "outstanding balance" are the 5 columns 5 years? 5 banks, the over all numbers are hard for me to tell
While I share your concerns people need somewhere to live and any house that could be an alternative to renting will keep its price. Taking in a border, renting out the basement, moving in with friends or family there is no other way when there are not enough houses. So people with a high end, especially old and energy inefficient will struggle, but modest 3 BedRm homes, especially with a basement apartment will cover the expenses, besides the owner probably cant afford to move, even if they could find a $3000 a month Apartment plus utilities... There is a small inventory of homes for sale and anyone who bought 3-5 years ago is up a decent amount..
Who could be hurting today are people who bought and has a $million+ floating rate mortgage from day 1, like a friend of mine, she has an enormous 100+ year old home, with a large floating mortgage and the rise from 2%-6% is a major problem.. Its on 28 acres, a bit rural and getting tenants is just not possible. Maint and energy are also major expenses.