5833 replies to this topic

[Victoria Watcher]

A new cooling-off period for homebuyers took effect today (Jan. 3) and one Victoria analyst says it will protect people from high-pressure situations.

The homebuyer protection period creates a mandatory three-business-day period to give homebuyers more time to secure financing or arrange home inspections.

Leo Spalteholz, a Victoria-based housing analyst, said the balance of power had tilted too far toward sellers.


https://www.vicnews....towards-buyers/

Edited by Victoria Watcher, 03 January 2023 - 11:27 AM.

[dkuitu]

Here is a very long article about Islamic or halal mortgages:

https://www.cbc.ca/n...anada-1.6690798

That despite its length, gives you no idea how they work.

 

This should apply to anyone that follows the Christian old testament as well.

Edited by dkuitu, 03 January 2023 - 11:31 AM.

[Victoria Watcher]

It’s all witchcraft!

[dkuitu]

"Fees" That ultimately allow a third party to pay interest for them. And then they get shafted an extra 4% per year. That doesn't sound like a good deal to me.

[Mike K.]

A new cooling-off period for homebuyers took effect today (Jan. 3) and one Victoria analyst says it will protect people from high-pressure situations.

The homebuyer protection period creates a mandatory three-business-day period to give homebuyers more time to secure financing or arrange home inspections.

Leo Spalteholz, a Victoria-based housing analyst, said the balance of power had tilted too far toward sellers.


https://www.vicnews....towards-buyers/

I don’t think sellers are enjoying any sort of balance of power right now.

[Victoria Watcher]

Don’t question the expert.

[Ismo07]

I don’t think sellers are enjoying any sort of balance of power right now.

 

Why would sellers want the power to shift to buyers?

[Mike K.]

I think the best part about this is the market cooled so quickly, that now the province can’t take credit for ‘balancing the market.’ They’ll try to in time, but anyone with a pulse knows it was macro impacts on the broader market that saw the pendulum come back, not micro tinkering.

Ismo, we should start a lobby group to help protect sellers. Buyers are wielding too much power, and robbing seniors of their nest eggs.

[Ismo07]

I think the best part about this is the market cooled so quickly, that now the province can’t take credit for ‘balancing the market.’ They’ll try to in time, but anyone with a pulse knows it was macro impacts on the broader market that saw the pendulum come back, not micro tinkering.

Ismo, we should start a lobby group to help protect sellers. Buyers are wielding too much power, and robbing seniors of their nest eggs.

 

Was it more interest rates that played a part now?  Poor sellers...  Not much to lobby is there?  Market drives it, if people can buy they will and pay more than maybe they should so prices rise.  If they can't seems prices will drop...  Like rents I guess...

 

So many people moving here...  Is that slowing a bit?

[davidN]

Agreed.

 

Let's call Ben to Lobby for us?

 

He seems to rally to the cause of every downtrodden minority group. We could even pay him a "consulting fee" I know I would pay him what he is worth.

[Mike K.]

Agreed.

Let's call Ben to Lobby for us?

He seems to rally to the cause of every downtrodden minority group. We could even pay him a "consulting fee" I know I would pay him what he is worth.

Buyers have a literal stranglehold over the market right now. Properties are sitting 30, 60 or 90 days or longer on the market because buyers are offering prices out of sync with seller expectations. Some would call this predatory behaviour.

When a market becomes this unbalanced, it hurts British Columbians and has economic impacts. What is the government going to do to restore a sense of balance?

[Ismo07]

Buyers have a literal stranglehold over the market right now. Properties are sitting 30, 60 or 90 days or longer on the market because buyers are offering prices out of sync with seller expectations. Some would call this predatory behaviour.

When a market becomes this unbalanced, it hurts British Columbians and has economic impacts. What is the government going to do to restore a sense of balance?

 

Hasn't it been that unbalanced for like 15 years almost 20?  It's been bidding wars for that long...

Edited by Ismo07, 03 January 2023 - 01:38 PM.

[Mike K.]

You might want to check that with your experts.

[Ismo07]

You might want to check that with your experts.

 

Bidding wars since then.. Sold a house 17 years ago with an add in the TC...  Like 40 people called and came by...  You think it hasn't been a heavy buyer market?  House sold before they hit the market even?  I don't need experts for that... Early 90s there were a ton of houses for sale...  Since, not so much...  For a long while, buildings sold out fast for pre-sales...  Now not as fast...  Things are changing...  The market hasn't exploded the last 20 years because it's been a buyers market...

Edited by Ismo07, 03 January 2023 - 02:27 PM.

[Mike K.]

No it hasn’t. There were undulations over that period. If you spread it out it evens out. Multiple bids on properties is not a barometer of an unhealthy market, it just means the house is nice and more than one buyer wants it. Homes are seeing 40 people walk through them today as well but that doesn’t mean they’re selling. Then there are also homes that get into bidding wars even in this market, because the price was set too low, and/or it’s a desirable property.

Here are a couple more details from the province:

“Housing remains a top concern for people in B.C. and a top priority for this government,” said Katrine Conroy, Minister of Finance. “Buying a home is one of the biggest decisions of people’s lives. This is an important milestone as we lead the way in protecting people and strengthening public confidence in the real estate market.”

The homebuyer protection period, also referred to in the industry as the homebuyer recission period, includes a rescission or cancellation fee of 0.25% of the purchase price, or $250 for every $100,000, for those who cancel their contract to help ensure that all parties are taking the transaction seriously. For example, if the buyer exercises the right of rescission on a $1-million home, they would be required to pay $2,500 to the seller.

Ouch. You better hope that offer you made was for what you expected to see, or every time you pay for a $700 inspection, you’re also out $2,500.

[Ismo07]

No it hasn’t. There were undulations over that period. If you spread it out it evens out. Multiple bids on properties is not a barometer of an unhealthy market, it just means the house is nice and more than one buyer wants it. Homes are seeing 40 people walk through them today as well but that doesn’t mean they’re selling.

Here are a couple more details from the province:



Ouch. You better hope that offer you made was for what you expected to see, or every time you pay for a $700 inspection, you’re also out $2,500.

 

A few undulations... Over the course of that period the market went up and up and up for the most part...  Sellers market during that stretch..  Prices sky rocketed and realtors may have had the best 20 year stretch in history...  Lowering rates and dwindling inventory...  Yes homes are seeing that now because they are over priced as they were for years, now its a reset...  It was like that till early 2000..  Maybe we are returning due to interests increasing... Now prices are too high... Really since the early 70s Victoria has really been a sellers market..  Save for the early 80s...  We have an awesome housing market..  That's just better for the seller typically...

Edited by Ismo07, 03 January 2023 - 02:57 PM.

[Mike K.]

It’s not about prices. That’s irrelevant. It’s more about whether at the point of sale the buyer or the seller had the advantage. If you bought in January of 2022 and had to sell in December of 2022 you’d be facing a loss, most likely, just on price, not including transaction fees, etc. The common target is to sell for 7.5% above your purchase price to clear your closing costs and PTT on the next purchase. Maybe even more in some cases, so under 7.5% gain you’re losing.

Here’s the breakdown. Red is seller’s market. Green is buyer’s market. Blue is balanced/healthy, and just for the sake of argument I’ll give the buyers the market where the seller saw less than 7.5% appreciation, but if they had bought earlier there’s a high chance they lost money on the deal.

Keep in mind this is the most desirable market in Canada. Sellers have a natural advantage but that isn’t enough/guaranteed every year or even longer period.

[dasmo]

Bought my first house 20 years ago. No bidding war, bought it for more than 10% off list with conditions. Definitely not a sellers market then. Mind you people thought Vic West was gang land.
Bought another house 10 years later under list, even got the price down after house inspection uncovered an undisclosed issue. Not a sellers market then. Bulldozer bait in Fairfield.
Bought my property here in 2016 well under list with 3 months to do a feasibility study even. Not a sellers market. It did turn quickly after I bought though.
Had to sell the houses to buy and build here. Sold the first to the couple who were renting it. The fairfield house had no nibbles even for weeks. I think it was winter 2018 I think. I got lucky but it wasn’t a big sellers market then.

Everything has its rhythm.

Price has steadily climbed though but that’s what inflation does. Money loses half its value every ten years.

[Ismo07]

It’s not about prices. That’s irrelevant. It’s all it whether at the point of sale the buyer or the seller has the advantage. If you bought in January of 2022 and had to sell in December you’d be facing a loss, most likely. That’s just on price, not including transaction fees, etc.

Here’s the breakdown. Red is seller’s market. Green is buyer’s market. Blue is balance/healthy.

Keep in mind this is the most desirable market in Canada. Sellers have a natural advantage but that isn’t enough/guaranteed every year or even longer period.

 

 

Well first I'm colour blind...  Then you say price is irrelevant then show me a table that shows % increase (or decrease) in price?  It is based on a few things I grant you, but for the most part it's been a sellers market due to inventory.  Because inventory has been low with multiple offers prices are increased.  Not many are buying in January and selling in December..  And that doesn't have to do with whose market it is.  

 

I think what I'd like to see is average time on the market...  That's better than sold price.

Edited by Ismo07, 03 January 2023 - 03:08 PM.

[Mike K.]

Can you go into a store and buy a candybar for 25 cents like you did when you were a kid? Home prices generally rise, it’s a reflection of a lot of factors.

The chart above is just a simple way of reflecting when buyers had the upper hand and when sellers did. The actual price of real-estate isn’t relevant, otherwise we’d be arguing that houses should cost $150k not $900k.

*I didn’t know you are colour blind.