Canada, equity, mortgage, opinion, predictions, prices

New mortgage rules drive up housing market.

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Tighter mortgage rules were intended to cool the Canadian housing market, but according to National Bank economist Marc Pinsonneault they are having the opposite effect in the short term.

The new rules require insured mortgage holders to put down a minimum of 10 per cent for any portion of a house’s price above $500,000. The 5-per-cent minimum down payment still applies for the portion of a house price below that.

Economists predicted last year the rules would temporarily drive the market up, as homebuyers raced to land a mortgage before the deadline.

But Pinsonneault says the effect will continue this year, because the new rules don’t apply to anyone who locked in a mortgage before Feb. 15 of this year, and those people have until July 1 to buy a home.

It seems like everything done in the name of ‘cooling’ the housing market has the opposite effect.  Read the full article here.

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bullwhip29

Crusty’s exit plan…
toss PM under the bus if LNG plans go off the rails completely (and alienating only potential friend she may ever have going forward)

Clark hopeful LNG terminal will get federal cabinet approval
http://www.theglobeandmail.com/news/british-columbia/clark-hopeful-lng-terminal-will-get-federal-cabinet-approval/article29268825/

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bullwhip29

regarding this article from the Richmond News (with story likely carried elsewhere). sorry, if it has already been posted here. *** Richmond realtors protest against agency tied to shadow-flipping *** http://www.richmond-news.com/news/richmond-realtors-protest-against-agency-tied-to-shadow-flipping-1.2198721 >>>it would seem some of my (and others) suspicions about New Coast Realty and their shady business practices may prove to be on the money. This is classic late inning type of behaviour often seen when asset bubbles form too quickly and the powers that be take their eyes off the ball and let the inmates take control. This said, I previously thought the two agents mentioned in the article were fully engaged in these shenanigans themselves (and this may still be the case) versus simply being pawns in a bigger scheme. What I find rather curious is that these agents are supposedly owed substantial sums of cash, which… Read more »

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southseacompany

“U.S. Federal Reserve keeps benchmark interest rate steady”, CBC News

http://www.cbc.ca/news/business/yellen-fed-interest-rate-1.3494212

“Fed still expects to hike rates this year — but maybe only twice”

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paulb

New
260
Sold
224

TI:8244

http://www.paulboenisch.com

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voter

Trudeau budget deficit expected to be $30,000,000,000 .Child Care Benefit to be cornerstone of budget.Prediction, higher house prices due to huge increase in Child Care Benefit.

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Cat in the hat

Cat in the hat has given up and will buy this Spring.
US fed said today inflation hasn’t hit the target 2%. In fact, it is hard to find anything that matters to middle class hasn’t gone up 20%. Food? Housing? Only thing is kept under 2% is wages.

Econ 101, the value of money is INTEREST. If Interest is -ve, all the printed money in the world wouldn’t buy you 6 feet of land to house your dead body.

This is why Donald Trump is so popular. It is revolution time!

RIP – Cat in the hat

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realist

David Eby’s “Emergency HousingTown Hall” meeting is tonight at 7 pm. The hall is apparently already over capacity according to his website, but visit same for link to live streaming.

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Loon

Streaming link here:

https://www.youtube.com/watch?v=rucmyTrx3zA&feature=youtu.be

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realist

Thanks, Loon! I tried to post link, but was held up in moderation (sorry, Pope)!

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Shut It Down Already

“275 watching” according to YouTube

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patriotz

The meeting got a brief mention on the Canada AM national news, 6 am EST.

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Combat roach

Vancouver has world’s fastest growing dirty money laundering business: report

http://www.vancitybuzz.com/2016/03/vancouver-luxury-real-estate-market-report/

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realist

David Eby, MLA-Vancouver Point Grey, is hosting an Emergency Housing Town Hall meeting tonight, start time 7pm. According to his website, the space will be over capacity due to “overwhelming demand” for (free) tickets, however, you can watch the live stream on you tube:
http://davidebymla.ca/news/watch-live-online-davids-emergency-housing-town-hall/

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Oracle

@dev/null:

You will get eaten up in the new globalized world if you worry about comments like that.

90% of the world doesn’t care if the word retard is mentioned or not. You have been schooled too much.

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voter

Probably an idealistic lefty.The Chinese are going to eat you up and spit you out .

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Oracle

You guys will never get it. Lost as ever.

It’s not mortgage rules. It’s immigration in all forms. Permanent (300K), Temp students workers ((400K), and 10 Yr visitor visa/Supervisa.

But you guys are easily swayed so confused at all time. That’s life. Good luck.

The recent boom in Surrey is to secure the kids future. Everyone buying detached in Indian community so each of their kids gets one when they reach adulthood.

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Tiger

i agree with u .Indian Co-worker of mine just bought a SFH in Surrey for $900,000 with the household income of $100,000(i do his family taxes).He is borrowing money from friends & family for a down payment so his son will have a home in the near future.

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BubbleTea

Back to the topic. Don’t think the new mortgage rule have anything to do with the sale of the 22 million house in Shaughnessey a couple of days ago or most of the houses in Vancouver. Its HAMs from CHINA.

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space889

And that sale don’t have anything to do with locals pay $800+ per sq ft for your average shoe box in the sky either.

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Zero Down Forty

And how many $22 million homes are being sold in Metro Van anyway?

There’s a guy on Granville selling $100 hot dogs. Those occasional $100 hot dog sales do not cause all hot dog prices to rise.

As has been point out many times on this blog, homes over $3 mil only make up about 5-7% of all home sales in Metro. About 80% of sales are worth less than $ 1million.

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BubbleTea

Have to disagree with you about HAMs. Average price for any house in the lower mainland is about 1.5 mil. Its priced out of reach for 98% of the working poors in Vancouver. And there is no chance in hell CMHC will touch you unless you already own a house and are moving up. A lot of house purchases are from that 1 trillion that had left China in 2015. Only saving grace is the money that are leaving China is slowing down, possibly due to the ever updating capital control.

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Many Franks

The latest on the wolves tasked with guarding the henhouse:

B.C. real estate advisory group looking into predatory sales practices

The Real Estate Council of B.C. announced last month that it would create a body to look into allegations of conduct by some B.C. realtors, including the exploitation of a clause that allows a contract to be resold multiple times before a property deal closes, driving up prices and commissions.

The advisory group is scheduled to provide an interim report to the Real Estate Council of B.C. by April 8, and a full report with recommendations is expected by the end of May.

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space889

To be honest, I don’t really care too much about this multiple assignments thing. To me, this is kind of people who day trade stocks. My issue is that taxes are not being reported and paid. As long as CRA really cracks down on the tax side, most of the problems will disappear.

The other main issue is if the seller’s agent aren’t properly representing seller’s best interest and actively participating in the flips for his/her own benefit. Such practice must be harshly punished. But unfortunately, we know the BC REC will not punish its own members, and going to courts is basically too costly for the average person. So these cheater agents know they can get away with this.

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patriotz

As far as I know, none of the press reports on the assignment flipping controversy have alleged any involvement by the seller’s agent. And I must say myself, if all parties involved are paying the taxes they are liable for, I don’t see a problem. Any seller who doesn’t want the sales contract assigned can just put in a clause disallowing it.

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bullwhip29

i think the whole crux of the issue surrounds involvement from seller’s agents doing the hard sell on uneducated homeowners who may be unaware of the current market value of their homes and unable to decipher all the legalese in the contract (assuming this is even being shown to them)

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Hyper-mega-Bull

Illegal dumping in Vancouver grows by 40%

City attributes the increase to less car ownership and changing demographics

http://www.cbc.ca/news/canada/british-columbia/illegal-dumping-vancouver-1.3484307

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space889

Hard to put anything into those Car2Go trunks.

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elvince

On the plus side,it should stop completely once every house is empty.

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Piklishi

A bit off topic but I think this will have an effect on prices for the lower mainland. http://vancouver.24hrs.ca/2016/03/15/toll-all-bridges-at-1-per-trip-delta-mayor
I just don’t get it. Instead of making the only 2 toll bridges free now we have to convert all 10 to toll ones. … unbelievable.

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space889

Do the Liberal retards politicians know anything beside tax & tax & spend? And this lady mayor has the gall to suggest that it is the will of people living in her city that’s pushing for tolling across all bridges. I believe she has also advocated region wide road usage tolling as well. All this tax is supposedly to help fund infrastructure (which will be tolled) and transportation.

I guess the fact that road taxes tend to retard free flowing of goods & services and economy growth is too much for her to grasp. What happens when total tax burden raises to 60%, 80% or even 100%?? We are already at 50% total tax burden now.

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/dev/null

How odd that you use the word retard in both the offensive and the grammatically correct way in the span of a single comment. As someone who constantly decries the discriminatory comments of others maybe you should take a moment to think about that.

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space889

Are Liberal politicians a race now? How is it comment discriminatory & offensive when it is stating the truth, and not generalizing to every politician? Especially compared to the types of comments from certain posters on this blog?

And lastly, you are criticizing me for finally learning and start taking baby steps to using the same posting & commenting style as the most popular posters on this blog?? Double standards much?

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Zero Down Forty

Tolling only some bridges while keeping others free defeats the purpose of congestion pricing. Would the Lions charge at some gates to BC Place and let people in free at others?

There may be an argument of toll/no toll or if toll- how much, but whatever the policy it should be applied evenly.

Keeping some bridges free was Christy’s uninformed, arbitrary knee-jerk reaction.

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space889

Did we the taxpayers already paid for the existing non-tolled bridges? So why do we have to pay tolls on these bridges? If bridges are tolled cuz they cost a lot of build & maintain, why not Sea 2 Sky Highway? Given there is no ferry or alternative services to cross Fraser River, tolling all crossing basically punish people who are living on the wrong side of Fraser River. Let’s also be honest here, the South side of Fraser River have much cheaper RE prices and where a lot of regular joes & poor people live. Seems like we are punishing them for being poor?! Lastly, we are already paying tons of gasoline taxes & Translink levy on property taxes, parking stalls, etc. Are all those money supposed to be spend on transportation infrastructure? So why the excuses to levy… Read more »

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Zero Down Forty

The tolls are for congestion pricing, not for paying for or maintaining the bridges.

Yes, there are pluses and minuses to the strategy;

https://en.wikipedia.org/wiki/Congestion_pricing

Not a lot of commuters on Sea- to Sky and no transit alternative so no rationale to toll for congestion pricing.

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