Real Estate Talks

That's great for you....

Problem is many people have bought recently and stretched to do so.  Many people bought presales with price gains baked in and have to close on higher rates than expected.

Really? Where's your reference that show this?

The mortgage delinquency rate in Vancouver is less than half the national average.
Vancouver .15
National .35
So it seems that high prices and being "stretched" are not related. Maybe, just maybe there are some very wealthy people buying here.

Notice how when I make this statement I back it up with a source. Try that.

https://www.google.ca/amp/www.cbc.ca/amp/1.4158195

That's great for you....

Problem is many people have bought recently and stretched to do so.  Many people bought presales with price gains baked in and have to close on higher rates than expected.

It is the margins where people get killed, not the people that are in the market for years - well maybe they are because Alpine Credits and Capital Direct are advertising non-stop so there are probably that many more that took out additional loans against their property.

Typical ETB though... only see the first step on a stairwell and can't imagine there might be another step, nevermind another flight of stairs.

It's scary when reallyreal makes sense, and ETB doesn't. 
To ETB,
Your thinking is muddled. Yes, you can pay 100% if you're downgrading to Surrey. What could you afford if you're upgrading to Vancouver West?

Don't argue with the troll and the half wit.

Majority of loans are issued through the major banks, last time I checked you needed to qualify for higher rates and not posted rates. Also something called service to debt ratio.

People would cancel their cell phones / TV and sell their cars before they allow their homes to go delinquent and walk away from their down payments.

Its not the states where they borrow 120% of home value and just walk away from a underwater mortage.

That's great for you....

Problem is many people have bought recently and stretched to do so.  Many people bought presales with price gains baked in and have to close on higher rates than expected.

It is the margins where people get killed, not the people that are in the market for years - well maybe they are because Alpine Credits and Capital Direct are advertising non-stop so there are probably that many more that took out additional loans against their property.

Typical ETB though... only see the first step on a stairwell and can't imagine there might be another step, nevermind another flight of stairs.

It's scary when reallyreal makes sense, and ETB doesn't. 
To ETB,
Your thinking is muddled. Yes, you can pay 100% if you're downgrading to Surrey. What could you afford if you're upgrading to Vancouver West?

That's not the way Vancouver works.
It's an inverse property ladder with buyers entering at the top and downgrades all through the detached market.
Buyers are also entering at the condo (bottom). They are squeezed out from ever entering detached because of all that equity floating around at this property type.
You can solve the problem by stopping first time buyers who enter at the top and bring 100% new money to the system. Good luck to you.

That's great for you....

Problem is many people have bought recently and stretched to do so.  Many people bought presales with price gains baked in and have to close on higher rates than expected.

It is the margins where people get killed, not the people that are in the market for years - well maybe they are because Alpine Credits and Capital Direct are advertising non-stop so there are probably that many more that took out additional loans against their property.

Typical ETB though... only see the first step on a stairwell and can't imagine there might be another step, nevermind another flight of stairs.

It's scary when reallyreal makes sense, and ETB doesn't.  :roll:
To ETB,
Your thinking is muddled. Yes, you can pay 100% if you're downgrading to Surrey. What could you afford if you're upgrading to Vancouver West?

That's not the way Vancouver works.
It's an inverse property ladder with buyers entering at the top and downgrades all through the detached market.
Buyers are also entering at the condo (bottom). They are squeezed out from ever entering detached because of all that equity floating around at this property type.
You can solve the problem by stopping first time buyers who enter at the top and bring 100% new money to the system. Good luck to you.

Huh?
FTB entering at the top? You mean the foreigners. Well, there few of them around. That's why West Vancouver and Vancouver West detached is quiet. No more records for mansions? 
Point is that you avoided my question. What can you upgrade to if prices stay at this level? You need a 30% (or 50%)  RE correction before your income qualifies you to grade. Hah! 
Same for all wage earners who don't have an inheritance or win a lottery. That's reality. 

You're asking the wrong guy jimtan.
I'm on an oversized lot. A downgrade for me would be a 33x122 detached. That's a dream home if you own anything below a detached. Ask townhouse, condo owner what they upgrade to. My situation is quite different.

You're asking the wrong guy jimtan.
I'm on an oversized lot. A downgrade for me would be a 33x122 detached. That's a dream home if you own anything below a detached. Ask townhouse, condo owner what they upgrade to. My situation is quite different.

Right! Your crack shack on the East Side is the ultimate home! 

Who cares to join the cretins in Dunbar or Kerrisdale? Or Shaughnessy?  

You're asking the wrong guy jimtan.
I'm on an oversized lot. A downgrade for me would be a 33x122 detached. That's a dream home if you own anything below a detached. Ask townhouse, condo owner what they upgrade to. My situation is quite different.

Right! Your crack shack on the East Side is the ultimate home! 

Who cares to join the cretins in Dunbar or Kerrisdale? Or Shaughnessy?  

Lol
Here we go with the crack shack comments.
Shows your true colours... bitter, jealous and on the outside of the detached market looking in. You are stuck at that property type just as I outlined.

West side is not anywhere close to a first choice for me. Vancouver is no longer a decent place for a working family, and westside is far worse than east.
I don't know one single person who bought west of Cambie in the last 20 years. That's for Chinese buyers who aren't neighborly, don't contribute to or enhance a community, or don't even live in the home they bought.
A couple I know (Canadian born Pediatric Physician) moved from Shaunessy to east Vancouver last year to live in a normal community.
Your comments about every buyer wanting the westside is far out of touch with reality.

Back on topic. Interest rates have to rise and return to normal. None more urgent than than the Europeans.

“Negative-yielding government debt 'supernova' jumps to $9.5 trillion

... Prominent investors have warned of the dangers of so much negative-yielding debt. Janus Henderson's Bill Gross has called it a "supernova" that will "explode," while Deutsche Bank CEO John Cryan has cautioned about "fatal consequences" of central banks being enticed by slashing rates to that extent.”

http://www.cnbc.com/2017/06/16/negative ... llion.html

Here we go...

"Bank of Canada raises interest rate for 1st time in 7 years to 0.75%"

http://www.cbc.ca/news/business/bank-ca ... -1.4200814

Indicating that they are looking for a 2% rise in mortgages...

"OSFI tightens rules on uninsured mortgages

OSFI proposals would require stress tests to qualify for all uninsured mortgages, and would make the qualifying rate for them the contract rate plus two per cent..."

http://business.financialpost.com/perso ... 9ad058f401

The combination of rising interest rates and appreciating Loonie will be disasterous for Canadian housing.

The combination of rising interest rates and appreciating Loonie will be disasterous for Canadian housing.

Im not sure if will be disasterous, but it will have an effect.  I think the bigger problem will be the NDP provincial policies

The combination of rising interest rates and appreciating Loonie will be disasterous for Canadian housing.

Im not sure if will be disasterous, but it will have an effect.  I think the bigger problem will be the NDP provincial policies

Which specific policies do you think will be a problem?

Wouldn't worry too much so far.
1st quarter 2017 we gained 12,500 migrants...8500 international.
So long as we have strong immigration prices can't stay down for long

This is how low rates were in the bond market during 2015-16.

"Canada Bonds Extend Plunge After First Rate Hike in Seven Years"

https://www.bloomberg.com/news/articles ... even-years