11:40 So the Bank of Canada should drop rates so people can pay their mortgage and let inflation run rampant? Let this be a tough lesson for the over levered homeowners/investors; currency stability > your garbage real estate investments.
Interest rates in Canada have to follow the USA fed. Inflation is the only mandate they have. We are in this situation because rates are lowered to keep stocks housing and jobs. It has to stop right now. If wages track inflation inflation will spiral upwards just like the 70’s. And yes I lived through the 70’s and bought my first house then. It was 50K at 20% mortgage. We earned a combined salary of 40K. We also had 5500 in student loans. We saved up $1000 a month and within less than a year we put 10% down of $5000 or about 10% of out salary. Payments were around 700$ monthly. To day a newly university graduate earns about 80K. For an average home of 1M$ I would have to save 100K. I could save maybe 60K$ and it would take 15 yrs for the down payment. Anyone see the problem? So anytime just have the biggest pandemic in a hundred yrs start a war in Europe and we all become filthy rich. Any see how absurd it is. For the last 50 yrs and I have personally experienced it rates have been dropping from 20% to zero and prices ie inflation just kept decreasing. Why? China and globalization. A downward spiral of rates. Now globalization has started its decoupling. That fridge made in China that sell fora dollars will now be made in a union shop in Guelph and probably cost $2000 or most likely $3000. All those products made in China will be made here. Start thinking hyperinflation. Why is our unemployment rate so low. Decoupling and all those baby boomers retiring. It is going to be the unwinding of the last 40 years and back to a normal historical economy. Oh it’s different now. We are at a permanent plateau of economics. Sound familiar. Irving Fisher a great economist in the summer of 1929. We all know what happened in October. History does not repeat but often rhymes. If we don’t learn from it we are doomed to repeat it. What will happen when rates are dropped to zero again next year and we are in a recession how is the fed going to save it.
Great explanation. Inflation is ALWAYS and everywhere a monetary phenomenon. No matter how you try and explain it, it's always, always a monetary phenomenon.
Canada is on mercy of US fed, rate will come down only when US decides. BOC cannot divorce FED and start cutting rates . So far everyone on FED side telling rates are going 4 % and will stay for longer periods of time may be beyond 2023.
If Canada diverts and lowers or stops raising rates expect a $0.65 loonie on the exchange rate and much higher import costs creating inflation rates around 20% in Canada. Probably the main reason why the bank of Canada will keep pace
All I can say is I am glad we went with a 5 year fixed back in fall 2020 still have 2% rate til end of 2025. Buckle down and pay off as much as you can before renewals come up
@@frankcho9293 can say what if all day lol (your 400k reduction in home price would mean the home would drop 50%... seems extreme) fact of the matter is we put 20% down and have been dumping lots of lump sums... already down to 500k on a original mortgage of 660k in less than 2 years time. By the time renewal comes planning to have about 50% of the mortgage paid off
You timed it right. I was telling my wife to lock in but she thought cause we saved so much by not locking in in 2017 and taking the low variable, that rates would stay low.
Mortgage interest rates are going to be at 20 year highs which means home prices are going to be at least at 10 year lows. We are going back to 2012 prices. Sellers who don't understand the macro economic environment think that If they just wait a few months, prices will go back up again
Trudeau is a shopaholic and a spendaholic that’s been spoon fed with luxury items his whole life. He and Freeland have no idea how to budget a child’s budget never mind an entire country’s budget.
I don’t know how long you have been around but in the 80”s it took inflation over 3 years to come down to a somewhat lower level and interest rates were 20 percent so you are dreaming if you think inflation will go down to 3 percent by next year interest rates are not even close to what they have to be for inflation to come down to 3 percent let the fool who overpaid for their houses lose them instead of over bidding each other and not saying that you want a million I will give you 800k I still don’t understand the psychological mind set of people they want to buy a pair of pants when it’s on sale but would not bid/offer a lower price for a house I hope this market crashes and burns this will certainly change our psychology
Thank you! This is what I’ve been alluding to in all my previous posts. History IS the best indicator and predictor of what’s to come and THERE IS NO WAY that this type of inflation will be eliminated in a single year with only interest rate hikes.
I also think the risk is skewed to inflation remaining stickier for longer. Why? I think we could be at the beginning of a bull market in commodities (and it pains me to sound like a commodities bull). Deglobalization is also real - and this will be inflationary. The labour shortage will likely persist and this will keep wage increases elevated. On the other hand, we could get a severe global recession… Get out your popcorn!
Private debt to GDP in the 1980s was around 70%. Today it is 300% of GDP. You can’t compare today to the 1980’s, not even remotely similar. You can’t Volcker with debt to GDP at these levels without creating a Great Depression 2.0. Also Canadas public debt to GDP was 40% in 1980s. Today it’s just over 120%.
Paying for a need is not foolish. Bears and this stupid notion that a house is an accessory therefore you pause events (downsizing, increase in family, job change in a new city) because housing is overpriced. Putting your life on hold for years so you can get a “deal” is an advantage only someone who lives in their mamas basement has. It’s like foregoing paying for medication because it’s “overpaid”. Well, if you need that medication to live then will pay that price. I disagree with Steve that inflation will come down sharply by next year. I also disagree with his belief that BoC will stop hiking. They won’t. Thry are the Feds bitch and will continue to follow. US is in better shape so thry will keep hiking and BoC will follow suit. Rates will get much higher and locking in may actually be a smart idea. Something I never thought I’d say.
I think people will be shocked as they watch interest rates continuing to climb well above optimists estimates. Our entire economy is in big trouble. We are about to find out how big.
BOC hands are tied, it has no option but to follow USA if not canadian dollar will be canadian peso within a year. If given a choice i believe BOC would love to keep the real estate fire burning disregarding any inflation. Canadian interest rate should not have been lowered so low if first place since US and Canada have different mortgage system, one is 30years and other is renew every 5 years.
Also Canada promoted foreign buyers and money laundering to buy real estate while the US raises property taxes on investors that own 2 or more homes in the same community/town.
Hey Steve I'm a Vancouverite currently travelling in Italy too! I agree the rock and hard place is inflation and higher interest rates. The government has always chosen inflation pain over interest rate pain. Regardless of the morally correct path, the government/CBs will do what they want.
How blind did you have to be to not lock in a 5-year fixed rate if you purchased a property before 2022... Even if you believed the negative rate narrative it was still insanely cheap.
In fairness, the BoC said rates would not rise until 2023 and that their data was showing inflation was temporary. In addition the Ukraine/Russia situation had not began. The head of the government agency responsible for rates and inflation was massively wrong and I don't blame average Canadians for listening.
@@zacdrake3 The BoC made that announcement 2 years ago. That meant market uncertainty (risk) would kick in in 2023. The point still stands...why would you not lock it in for 5 years?? Those are not difficult dots to connect.
@@pieter1928 In the US you can but in Canada TD offers the longest fixed rate at 10 years. It’s one of the reasons why the US housing market is stable and they can raise rates comfortably without the US housing prices crashing. Also the average home prices across the US is $420 k US or about $530 k Canadian. The average price of a hike in Canada was $830 k Canadian in March 2022
You also need to factor in your intentions with the property. If you plan on breaking the mortgage before 5 year term the penalties are huge. 60% of Canadians break their term because life happens. Kids, job relocation, divorce, etc
Landlord price controls will lead to less investment into maintaining those properties. It always happens for what incentive is there when you spend more (inflation) than you are allowed to bring in (Pandering government price controls).
I get it high debt levels, high unemployment, yadayada, BUT, if the inflation is not contained, the whole economy is going down, everyone, all companies,,, I am convinced when BoC and Fed said they will bring inflation down at all costs, hard landing , Soft landing, they meant it.
Well investor should know that if interest rated were to rise as they have done, and didn't factor into this expensive into a business plan, I don't feel sorry for them one bit, all business should know that the cost are involve in owning rental
Between rate hikes and rate cuts there is a thing called policy making which is absent. You also have lobby like builders/developers who just like oil producing countries control supply and Govt can't seam to find any easy way to inspire them to provide more.
You need to cut Steve some slack. Everyone got the interest rate call wrong. I appreciate the fact he puts his views out there every week. I listen to Steve simply as one of many inputs. At the end of the day i am responsible for what i do.
@@jason4130 it’s funny how many claim they knew this would happen and “how could you not have seen this?” I read all the comments on Steve’s videos. The biggest bear was nowhere near predicting what happened.
@@JaBlanche anyone with half a brain locked in sub 3% rates. I got 2.2%. people got greedy and listened to bad advice, there were 5 year rates for 1.7% that's cheap AF.
@@vikingvancouver9832 nothing wrong with making calls and being wrong. Steve has humility on RU-vid. On Twitter, however, he has a chip on his shoulder.
He's putting to much emphasis on "the BOC can't let housing get to bad", which is why he continues to have the viewpoint they will have to pivot sooner than later. As long as your mindset is fixed on "the BOC will feel political pressure", you will continue to be wrong.
Steve, i appreciate your videos and the fact you put your views out there every week. Not easy in the current environment. I think you continue to under-appreciate high inflation and over-appreciate high consumer debt levels in your analysis. High inflation negatively impacts every consumer and business in Canada - in a big, big way. If inflation expectations get entrenched (and built into wage increases) then we are all screwed because high inflation (greater then 4%) is likely here for years. The canary in the coal mine will be what the union contacts in BC get settled for… my guess is we will see wage increases averaging 4-5% the next 3 years… hard to see inflation coming down in that scenario. High interest rates will cause problems for people with way too much debt. That is a small subset of the Canadian population (a big subset of your customer base). That will not be the tail that wags the Bank of Canada dog. Inflation is job 1. If defeating inflation causes a recession - so be it. Leverage was a ticket to wealth the past 20 years. Leverage today could end up being a ticket to the poor house. Hard lesson to learn for those who jumped in the last couple of years…
I think we will learn to live with inflation at 3-4%. Price controls are already here, see Europe, and likely next is some form of yield curve control; which we’ve already been living with in 10 years of QE. Goal posts will be moved. Don’t forget sovereign debts that is the real bubble and governments won’t go peacefully into the night, they will print the difference.
Ontario capped rent increases at 2.5%, it seems to be a trend. While I understand protecting the renter if you have less landlords but still the same number of people wanting to rent the rents will go up. So even if you force a landlord out another can scoop up the property and get higher rents or they could "renovict". Property taxes, interest, maintenance, utilities are all going up and they're telling landlords to kick rocks. We'll see how that works out. More pain for all. How can you prevent anyone from trying to keep up with the devaluation of the dollar? Do you also cap pay raises for renters at 2.5%, gas prices at 2.5%?
@@jmela1370 that's been known for awhile. Besides, what impact would that have on participants in the fx markets? Unless you're linking a collapse in CAD housing as a sure indicator that the BoC will bring rates to 0?
@@warmlandmobilebrakes A collapse in Canadian housing will bring down the Canadian economy and create a worse recession in Canada then most of the world. This will bring down the Canadian dollar as well If the Bank of Canada decides to do QE, lower rates or not increase interest rates as much as the US to try and save the Canadian housing market then the loonie will drop massively and be way weaker. A weaker loonie will make all retail, food, electronics, etc products 15-20% more expensive on top of regular inflation around the world. So to me the loonie will drop in both situations over the next year since the US’s housing market is way more stable and can handle higher rates. Also Canada’s GDP has 12-15% based on the housing market so if it collapses it’ll hurt Canadian GDP a lor
Seems now that everything is coming together for the ideal hand-off to Poilierve. I have a feeling he will fulfill his promises with respect to housing, whether he likes it or not.
He'll likely get elected and then it will collapse. People are so stupid they'll likely blame it on his tenure and clamor to get the lunatic neo-Bolsheviks back to 'save them. Great Reset/ Cloward Piven Strategy.
lol really? I've yet to see 1 politician fulfill a promise they mandated. They all talk a big game before they get into office. He'll be no different. You ppl are delusional
I doubt he will have any control over developer/builder community who actively monitors supply. Also, home buyers need to compete with investors. How he will control that. I don't see any policy level changes between liberals and conservatives.
The nations Central Bank is that Nations Bank for the Banks. Bankers main product is debt, they are debt merchants. They have a monopoly on allowing future productivity to be made available before it has happened. They move the interest rates to where it maximizes profits in relationship to the demand of the product (debt). The interest rate hikes mean a lot of money recently has been borrowed into existence and due to that demand they want more in return for access to that future productivity. A lot of the borrowing is coming from Government. The last two years has had the government spending like crazy and until they stop this the Central banks will keep increasing the cost to borrow.
Should be a very good learning lesson for high risk investors. If you borrow, spend (aka gamble) on the housing market and expect housing prices will only go up, they’ll eventually learn a very hard lesson. It’s only in the second inning now, but they can either sell some of their investments now with small profit in the early stages of this crash or they can see if they can hang in for the next 5 years as equity drops a lot more and interest rates keep rising throughout 2022 and even more in 2023. If they can keep making their mortgage payments even at 6 or 7% mortgage rates next year and for the following 3-5 years then they should hang in sjnce in 10 or 15 years from now prices will recover and hit new highs. If they can’t handle the higher rates Over the next 5 years then sell now before they lose mote
BOC will not pivot unless the inflation comes down. One of the main reasons for 80s persistent inflation was premature pivoting by central banks. I think the rates will stay high for a while this time.
how are they going to thwart 15% inflation with 1/2% rate hikes? especially while the national debt in the US has gone from 1 trillion in 1980 to 30 trillion today...Volker actually raised rates at 1, 2, & 3% at a time...during the 2007/08 financial scam they could only raise to 5.5% before having to lower them again...........Willie
Self serving video at its best! So by your logic, flippers who have made housing (a basic utility in an advanced economy) into a ponzi by paying 1.5m for shoebox homes should be humoured and because the country allowed non productive asset allocation over the last 20yrs (rather than productive investments) the BoC should kick the can down the road? You claim to be a student of economic cycles & credit- if so you’re failing buddy. As others have said, J Powell has the drivers seat. And he’s abundantly clear that rates will not be cut prematurely. Lastly as of Friday close the markets were NOT projecting a cut next year.
You do realize 15 short months ago Powell was telling everyone that rates in the US would remain at zero to the end of 2023 (and perhaps longer). Now i do agree that in the very short term rates are going higher in the US. But my view is Powell is a chicken hawk. At the first sign of serious trouble (rising unemployment or problems in credit markets) he will, once again, reverse course.
@@vikingvancouver9832 COVID is a black swan event so is inflation. They lowered rates to combat COVID first now they raise to combat inflation. If they knew there was going to be inflation, they wouldnt have said low rates until 2023 (if they actually said it, I didnt check the fact). So until they have a cure for inflation, they will not reserve course this time.
I agree wholeheartedly. Although I’m not sure we ll see a pivot in 2023 as inflation is ‘sticky’. Also, based on historical data, it seems that it make take several years at a higher overnight rate to bring rates down ( would like to get your thoughts on this) thank you.
They already debate if inflation at 3% is ok. Soon they will start talking that 4% inflation is good for you. Imaging chasing 4% inflation with our salaries.
They said low inflation was the problem of our times. They were disappointed they under shot for a decade. They finally got what they wanted, perhaps a bit too much !
Thanks for the great content Steve. Appreciate your time and input. Hard times ahead We have a mortgage through Scotia (floating variable as you mentioned) and feeling the effects of higher rates… was paying $2222/month and now up to over 3000. Definitely tightening the budget belt 😅
Real Estate valuations are not.... repeat NOT.... going to come back up anywhere to unrealistic levels attained in Q1/2022..... that is now macro financially speaking impossible.... the trajectory for Real Estate valuations in the foreseeable is most definitively downward..... the only unknown being the final lower valuation level(cpi inflation/regionally dependent). Even if the current BoC Monetary Policy rate measures were successful in reversing cpi inflation debasement problem to 2% in the immediate.... the already accrued damages to affordability would suggest the requirement for substantial wage increases closer to 20% to offset...... and very simply, that is impossible without re-igniting the aforementioned cpi inflation currency debasement cycle. IMO, I would suggest people begin preparations ?... if they have not already done so ?..... for a protracted recessionary trend, differing levels of supply chain constraints, with potential for social unrest complications to both Gov't Fiscal and BoC Monetary Policy as political/economic interests polarize even further along regional lines.
@@Clone42 I intend no hyperbole.... when I say that after 50+ years of being compensated quite satisfactorily for staid investment analysis.... that I myself am hearing the theme from the "twilight zone" playing in the background ? upon even cursory perusal of now presenting fundamentals. My apologies if I have overstated my sentiments.
I don't think financial forecasters are taking into account when governments begin to throw money at the problem which is inevitable what that will do to our financial scenario
Between now and the next scheduled rate hike. Boc will have to think twice about another hike. Demand is slowing in the economy. Job loss will accelerate. Inflation will be coming down substantially.
Buddy, bankers don't give a shit. Risk used to be a real thing, they have snow plowed the risk out of the market for the past 2 almost 3 decades, risk is becoming real again. Don't worry when everything implodes we will get a shiny new currency.
Renting is a bit of a mug's game in Ontario unless you really know what you are doing. I remember an old story about a lady in Paris who had rent control for decades. They couldn't kick her out, and she wouldn't move or die; meanwhile the apartment ended up being worth millions, and she kept on paying very little.
I'm quite amazed the financial ability of Canadians. Americans can't even handle few hundred dollars of increase . And Canadians can handle thousands of dollars of increase like it's nothing. And Canadians generally earn less than Americans ...
In the past 2 years the Canadian federal government created 486 k government civil service jobs while the private sector created only 50 k jobs. These were numbers before last Friday’s report. Since most jobs created were government created jobs which typically pay 60 k a year with low responsibilities, most people took these jobs over retail, food and hospitality jobs which are the 1 Million low paying jobs available. The federal government probably afforded these jobs with the $500 Billion in QE money printing. With only $60 Billion or less left, the federal government will need to cut some of these jobs next year or else they’ll eventually run out of this free money. At that point Canada will have the government and private sector cutting jobs making Canada’s job and economic situation much worse than it currently looks. One way to look at it is that the government is trying to make everything look as rosy as possible, but the details show otherwise and Canada’s government debt, corporate debt and household debt is one of the worst in the world as mentioned in Saretsky’s video
@@jmela1370 thanks for the great explanation, so basically the government diverted the work force and the shortage is mostly in the service sector... restaurants and hourly wage type of jobs, meanwhile corporate is now starting waves of layoffs spiking unemployment slightly ...and like you said and this video things are going to get much worse next year because of the dynamics of work force impacted by debt servicing
@@sam3r_11 That’s my view of most of it. Certainly the CERB and CRB handouts especially to full time high school and university students probably weakened the workforce in these retail and food jobs as well. Full-time students were getting $500 a week for 6 or more months and then when CERB ended and CRB started, they were able to get $300 extra a week as long as they proved they worked half the hours they did in the same time period in 2019 or early 2020. I have a friend that’s a manager at a Starbucks and students were deliberately asking him to just work 5 hours that week and not to book them for more since they had worked 10 hours the week before. This allowed them to collect the extra $300 that week on CRB. The CRB isn’t available anymore but I don’t get the feeling that the full-time students are working part time as much as they did 3 years ago. Maybe since they’ve saved up a good amount of money from government handouts and they’re just enjoying life now, but impossible to know for sure. As the economy gets worse, like it did in the late 70’s and people can’t handle their costs of living and people lose jobs these 1 Million low paying jobs will get picked up quickly by people that need a second or a third job to pay their bills again since they can’t make ends meet on their current job. Some might lose their good paying job and will fall back on these lower paying jobs after receiving EI. It’ll be scary/interesting to see in the next two years. I hope what I’m predicting isn’t as bad as it turns out but I’d prefer to inform people of the worst so they can prepare and hopefully it won’t get this bad.
@@jmela1370 Yeah that makes sense I wasn't aware of all the intricacies of CERB since I never saw a penny of it...and typically what I understood is that for those in their mid thirties in major cities working say in restaurants or airline industries making just enough for their lifestyle of sharing condos and living in the hustle and bustle in some cases hourly wage plus tips were enough...then what was dubbed the great resignation made some of these young adults switch industries going into tech or becoming recruiters or head hunters ...but I am finding alot of these hourly wage jobs are being filled with immigrants that are fresh into the country right now... but yeah like you said over the next 18 months it's going to be interesting to see how VC dry money into startups and tech, those that over leveraged themselves in housing once they hit their trigger rates and the fact that our policies have always been renter biased and never landlord one how are they going to break even on their rental investments if not go under
The reason why people took on too much debt is because interest rates were to low. Rates are still low compared to historical norms. What needs to happen is housing needs to crash and zombie business need to fail there needs to be a financial cleansing.
We're all suffering high inflation due to government decisions; massive deficit spending, greenwashing, lockdowns/mandates, and being supporters of war/tension. Don't blame your neighbour.
You have to suffer more so because of the way you or at least too many votes…… Everyone wants free dental care, free cerb, low interest rates, forgiven student debt… It’s far less the behaviour of the citizens who are reacting to the bad decisions of their government . The fall of any society is when they get weak, spoiled and entitled. That’s where we are in the western world and all these left wing “free” policies(some parties claiming to be right wing do them too) and shut down the economy policies are what’s driving this…the people who took on too much debt didn’t drive inflation they’re just a consequence of no government having the stones to balance a budget, cut spending, reign in free fiscal and monetary policy…if you had balanced budgets and an economy that wasn’t shutdown for 2 years there’d be no inflation…end of story….rates would’ve stayed at 2-3% and yes we would’ve had more pain the last 2 years but now it looks like we’ll have 5x the pain over 5…classic weakness and entitlement situation.
Please don’t blame your fellow Canadians. This debacle is a product of the elected federal government. Unfortunately, as stated by GNF a deflationary event will have to occur in order for things to go back to normal.
We’ve been living in times of excess, adjust your lifestyle now or your creditors will adjust it for you later. Excellent presentation Steve but I see you choose to ignore the BOCs primary mandate is maintaining target inflation. Previous Governing councils didn’t intervene when sectors inflated due to policy nor will they when these sectors deflate…it’s just collateral damage.
We don’t vote for anyone in the Bank of Canada. JT and co on the other hand I don’t understand anyone who wants affordable housing can’t see how bad the situation has gotten under his tenure and still vote for his party thinking they can fix it.
Who is kidding who ? R/E has been a massive speculation to riches area due to the politicians and money changers for decades now. We all deserve some serious pain as real life lessons are important educational stories to be passed from one generation to another.
Steve you finally listened and stole my thesis. Oh and by the way. Ontario investors are kicking everyone out and raising rent to cover those costs. So ya this country is fucked
Why we cannot buy houses and cars and all these type of products if we have money in our hand instead of taking debt, this greed has elevated the price of 200000 property to 2000000 through the cycle of debt on debt and interest on interest, if someone look into sold houses data specially in GTA and GVA same properties are sold multiple times in few years and in some cases even 8 to 10 times , if everyone is forced to purchase on cash ( can really afford) this madness stop once for all but I know this is not possible due to the greed of both people and financial institutions
Now that is what I call content … you have taken the market and explained everything from interest rate front loading and the ramifications down the road in better language than I have heard so far on you tube … great examples too. I agree who says inflation will number should be around 2% . The BOC is wishful thinking at 2% but we will accept 4% as a new norm …. Good video again !
Interesting how expectations have changed. Buying rental property, in the 70’s, 80’s, 90’s. With %25 down, you hoped that within 5-10 years, it would cover its expenses. (In the big cities).
The highest global population growth rates, with increases of over 1.8% per year, occurred between 1955 and 1975 - peaking at 2.1% This is why 2% is the target! We are closer to 1.1% now SIR
@@kevinthompson3794 Probably best to prepare for the biweekly payment to increase by another $60 to $120 more by the end of December. Might be best to go 5 or 10 year fixed now but much tougher decision than last January
@@donm2067 i wanted to. But in 2017 i wanted to lock in a 3.5% and my wife insisted we go variable and we saved huge. So now i was telling her to switch but she wanted to stay variable. Now we just have to ride it out. Our payments are manageable, we owe 290k and our variable rate is now 4.4%.
So if you buy into shelter for your family,, your now a real estate investor??? Are you serious bro.!!!??? Investing and money making, needs to gtfo of middle-class shelter housing.
US bond futures are pricing in 4.5% until June 2023. It doesn't look like the rate hikes are pausing this year. Even if they pause, it could be at least 6-12 month pause at ~4%. BOC has no option but to follow Fed.
“We are ending a 40-year period of ever loosening monetary conditions,” Mark Wiedman, BlackRock’s head of international and corporate strategy, and a top candidate to succeed chief executive Larry Fink, said in an interview in the company’s Toronto office.
"All Good Points" ... but even with only one more rate increase from the BOC the recent rate increases have not passed through the Real Estate Market .... as we know Real Estate event "Factors" take 18 to 24 months to adjust Real Estate Prices .... the government wants to create a recession to kill Inflation ... the very definition of a recession is "Two Quarters" of negative growth .. first comes the slow down .. then comes the recession ... which means based on what we already know of how things work the government can't reverse it's high interest "Rate Policy" for at least a year ... otherwise all the pain and suffering would of been just for nothing ...
Economy is already dead , people just have not opened their eyes to it . soon home prices will drop by half , no choice if you cant sell and the rate payments have doubled so i expect the prices to drop by double also. nobody will be buying homes at least for the next year , the BOC has already destroyed the economy , just a matter of time before we see the mess they created again. This christmas will not be a good one for people in my eyes. :(
Since Canada was in lockdown from December to February from Omicron, no matter how bad the numbers are in Q4 2022 and Q1 2023 it still won’t be worse than last year’s which means Canada won’t state/admit it’s in a recession till late Q2 or Q3 2023 The US didn’t have much lockdowns which is why they have small recession numbers this year. Not hard to understand. It most Canadians think our economy is so strong and amazing lol
It is good to get into real estate. Its just not a good time right now with prices coming down, but sometime in 2023 yes it will be good to buy again if you have a long term mindset, real estate will always be a good investment 90% of the time.
Oh well you can expect even higher payments as interest rates will still increase in the mid term. Too many people borrow more then they could afford. The people where sucked in by the low interest rates which resulted in a false illusion of wealth. Many will be going to see the bankruptcy trustee soon!
If the dollar is going to devalue, are the prices going to go up? Venturing into the trading world without the help of a professional trader and expecting profits is like turning water into wine, you would need a miracle, that's why i trade with Mrs Elena Garcia her skills set is exceptional.
One persons spending = another persons income. Downward spiral is underway. The question really is: When does the Bank of Canada pause and then reverse course?
Crazy low interest rates were kicking my 90 year old mother in law in the teeth for years. Crazy low interest rates are simply a wealth transfer from savers to borrowers. Brave new world!
