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Low rates forever

Looks like the US fed isn’t very optimistic about the recovery. They say Japan style interest rates until 2014. Will this help a US house price recovery, or will buyers wait if they know there’s no rush for bargain rates?

This entry was posted on Thursday, January 26th, 2012 at 8:21 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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56 Responses to “Low rates forever”

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  1. 56

  2. “What I can tell you from long, direct experience is that the Westside of Vancouver is now and always has been ground zero for real estate corrections.” | Vancouver Real Estate Anecdote Archive Says: Reply to this comment
    January 29th, 2012 at 10:37 am

    [...] having a clue about this, even when their Kool-Aid drinking parents ought to know better.” – JR at vancouvercondo.info 26 Jan 2012 9:13pm Share:TwitterFacebookRedditStumbleUponDigg This entry was posted in 02. Profiting from the Boom, [...]

    Current score: 0
  3. 55

  4. mac Says: Reply to this comment
    January 27th, 2012 at 2:12 am

    @DEFAULT NAME:

    Default Name,

    As I've said before, you're a light in a dark sea, but a dim one.

    Current score: 0
  5. 54

  6. VMD Says: Reply to this comment
    January 26th, 2012 at 4:16 pm

    Just started a thread in the forum to help RE newbies (myself included) understand the linguistic intricacies in a typical MLS listing (especially for Vancouver). To start off:

    "Handyman's Special": looks bad, smells bad, has at least one major system that doesn’t function

    "Motivated": seller gives the impression that he is under pressure to reach a quick deal

    perhaps someone can continue on by defining "Vancouver's Special"..

    http://vancouvercondo.info/forum/topic/mls-lingo-…

    Current score: 2
  7. 53

  8. Curiosity Says: Reply to this comment
    January 26th, 2012 at 4:02 pm

    Quoting what Makaya had to say:

    Makaya Says:

    January 26th, 2012 at 4:29 pm

    Lots of worried realtors in the marketplace these days… Here are a couple of comments taken from Larry’s blog:

    If we have rich and savvy Chinese buyers keeping the top end of the RE market busy, and we have next-to-nothing interest rates keeping the mid-low range busy, then we have a robust housing market.

    Be calm. There is no cause for concern.

    My opinion:

    Chinese buyers may keep the top end moving but cheap interest rates may not do the trick if your mortgage is $500k and you make pennies for wages. So if you've maxed out on your mortgage to buy your overpriced Vancouver mutt house on low interests, you're still barely scraping through. Any unforeseen economical event can still wipe you out. With a $500k mortgage, you can probably pay it off when you turn 90. Hopefully medical technology will prevent you from being senile before then. Or maybe that's a good thing…….you just forgot that you had a mortgage didn't you:=)

    Current score: 2
  9. 52

  10. Makaya Makaya Says: Reply to this comment
    January 26th, 2012 at 3:18 pm

    And another must read! Jeez, it's a flood of bubble talk these days… Today from MacLeans

    What happens when Canada’s housing bubble pops?

    So, are we literally living in a bubble? And when it bursts, will it get as ugly as it did south of the border? Here’s where the most recent speculation is pointing:

    Yes, we’re in a bubble, and it will probably pop soon. [bold in the original text as well!]

    The signs of a bubble are unequivocal. At 13 years and counting, Canada’s current housing boom is one of the longest-lasting in the world, the Bank of Nova Scotia noted in a recent report. The real price of Canadian homes has increased by 85 per cent on average since 1998. Prices stagnated in 2008, at the height of the financial crisis, but they were back on the rise again as soon as 2009, when they grew by nearly 20 per cent, according to the Canadian Real Estate Association.

    (…)

    The scary part is that, by most accounts, 2012 is going to be the year when housing prices start heading south. The housing market is already showing signs of weakness. Despite a rebound in December, housing starts fell in the last quarter of 2011. And in some smaller markets on the west coast, condo prices have already declined 15 per cent, according to Merrill Lynch. The bank predicts that prices nationwide will slip by five per cent this year in the best-case scenario. A spike in unemployment could trigger a 10 per cent price drop.

    Here we are guys, this is it. The time has come to buy pop-corn and enjoy the show…

    Current score: 11
  11. 51

  12. TPFKAA Says: Reply to this comment
    January 26th, 2012 at 2:50 pm

    looks like Jesse was right RE: listings being pulled forward for CNY. Definite slump in listings the last couple of days. Sales not boosted either (yet), but listings do seem to be down.

    Current score: 3

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