5833 replies to this topic

[spanky123]

Inflation moderating my butt.

 

This is exactly the dilemma that many people predicted. Governments, companies and individuals are so far in debt that they cannot absorb higher interest rates. The only option then it is hold interest rates and let inflation run while telling people it isn't.

[Mike K.]

And another option is to raise pay to cover consumer debts. Then blame the raise in pay as responsible for more inflation.

That’s coming next.

[Stephen James]

Haven't heard this discussed, yet...

Worse than inflation or recession is something called "stagflation": rising prices, no growth in GDP.

 

I think we may be looking at it and it's a serious problem that makes many fiscal tools painful "damned if you do, and damned if you don't."

We have a lot of wage inflation, possibly encouraged by left-leaning governments federally and some provincially, but we're also at the point in the cycle where leverage needs to be rinsed out with higher borrowing costs.

 

FWIW to the investment-minded... focusing on reliable (20 year history), rising dividends from large incumbents has been a helpful strategy in such situations. Any business with less than prudent debt ratios, or vulnerable to cost volatility + gov reg would be something I'll avoid.

[Victoria Watcher]

A Biden administration rule is set to take effect that will force good-credit home buyers to pay more for their mortgages to subsidize loans to higher-risk borrowers.

 

Experts believe that borrowers with a credit score of about 680 would pay around $40 more per month on a $400,000 mortgage under rules from the Federal Housing Finance Agency that go into effect May 1, costs that will help subsidize people with lower credit ratings also looking for a mortgage, according to a Washington Times report Tuesday.

 

"The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well," Ian Wright, a senior loan officer at Bay Equity Home Loans, told the Times. "It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing."

 

 

https://www.foxnews....ers-good-credit

Edited by Victoria Watcher, 24 April 2023 - 07:09 AM.

[Mike K.]

We already see this in the housing industry, don't we? Market renters are subsidizing below-market units in their buildings.

[Citified.ca]

Exactly one year-ago Victoria saw its highest-ever SFD prices. What happened in April? See here: https://victoria.cit...tripped-supply/

 

The key theme was an under-supply of inventory, which has kept prices high, and rising.

[Victoria Watcher]

[Victoria Watcher]

Exactly one year-ago Victoria saw its highest-ever SFD prices. What happened in April? See here: https://victoria.cit...tripped-supply/

 

The key theme was an under-supply of inventory, which has kept prices high, and rising.

 

 

 

 

Sales pace, prices down for Greater Victoria homes

 

https://www.timescol...a-homes-6937735

 

Real estate sales numbers and prices have softened this year compared to last year’s hot market as the number of properties on the market continues to climb.

 

“Sales numbers for this April are more moderate than the higher levels we’ve seen in recent years,” Victoria Real Estate Board chair Graden Sol said Monday when monthly ­statistics were revealed.

 

 

 

Well-priced homes are selling quickly and close to their asking price, he said.

 

 

 

Translation:  the lowest price the Realtor can get the owner to list/sell for so they do the least amount work, in the minimum time.

 

A "well-priced" home is not advantageous to the seller.

Edited by Victoria Watcher, 02 May 2023 - 05:09 AM.

[Mike K.]

What??

Average and median house prices are way up compared to March. Condos and townhomes are flat, but have outsold any period since last May. How does that make the sales pace and prices “down?”

[Victoria Watcher]

The demise of single-family starter homes: What it takes to buy in Greater Victoria

 

 

Young adults will need to save for 22 years for a down payment, have a household income of $216K

 

https://www.vicnews....eater-victoria/

 

 

 

Breanne Epoch is facing a similar situation. While she grew up in Greater Victoria, she moved to Alberta and started a family with the intention of saving enough to return. After nearly a decade, a career change prompted Epoch, and her husband Kyle, to move back to the Island in April 2021 so they could be closer to family.

 

During their time in Alberta, the couple purchased three homes, which they use as rental properties. Yet, now with two small children in tow, they aren’t able to get a foothold in Greater Victoria’s market and Epoch noted the costs of those three homes are less than one in Greater Victoria.

Edited by Victoria Watcher, 10 May 2023 - 07:05 AM.

[Mike K.]

But they keep voting in politicians, who just make it harder, and harder to buy that home.

You can’t have one, without the other.

[davidN]

I get that people are "outraged" by the costs of home ownership. But the facts are the facts. Desirable locations bring undesirables prices. This is everywhere in the world. 

 

Perhaps we need to adjust/change our goals and alter our mind sets?

 

I have lived in a number of countries where the goal is to enjoy life (family, friends, jobs etc) not own where you live - and the quality of life did not suffer.  

 

PS  - Do some research. If you think things will change then you are dreaming. My parents are Victoria born and were "outraged'" to have to pay $7,000 for their first house just after the war, Their combined incomes meant that they could barely afford to buy in the town they were born in. Nothing has changed! Each generation will be "outaged" and pine for the "good old days"

[Matt R.]

We have a bit of an inferiority complex around here. I’ve only travelled a little, but the south west coast here stacks up very well and is a really beautiful place to be, and it should come as no surprise that other people might want to live here, too.

And they bring money with them.

[Nparker]

Having the best overall weather in Canada will always attract people to our region. Perhaps "climate change" will rectify this. 🤔

[Matt R.]

More than just the weather - the landscape is stunning! It really is a beautiful part of the world.

[Victoria Watcher]

Seems even the outraged still accept the highest offer when they decide to sell.

[Matt R.]

I always wonder why people don’t just sell for less, and instead perpetuate the problem of expensive housing. Everyone is free to take a lower offer! Be the change you want to see, and all that.

[lanforod]

Having the best overall weather in Canada will always attract people to our region. Perhaps "climate change" will rectify this.

 

More likely climate change will make it even more desirable to live here. The models i've heard of are that we'll have San Diego like  climate in 50+ years.  I love San Diego's climate.

[dkuitu]

I wonder what that graph looks like for BC?

Edited by dkuitu, 11 May 2023 - 12:08 PM.

[Mike K.]

We’ve been on a warming trend since the early 1800s, so our climate will keep getting better. Nanaimo used to have palm trees, after all (discovered petrified near downtown).

Let’s get back to that and really turn this island around!