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Mortgage Broker News | 09 Dec 2015, 08:15 AM Agree 0
The Bank of Canada is keeping the key rate at 0.5% citing “complex” adjustment; but all brokers need to know is that the housing market is on shaky ground
  • Trevor Jones | 09 Dec 2015, 09:30 AM Agree 0
    Economists at the banks have been saying for 3 years now that houses are overvalued by 30% and there is going to be a drop in values. Prices are being fueled by wealthy immigrants coming to specific areas of Toronto and Vancouver and by young people who are priced out of housing market being forced to buy condo's as well as offshore investors buying condo's even with negative returns when they are rented. The only place that is in serious trouble is Alberta but they enjoyed a long run in high salaries, low unemployment, and house price increases building equity there for young people. Blame Albertas woes on Saudia Arabia trying to put them out of business. Toronto house prices will continue to rise and if anyone has noticed slowdown or no slowdown in economy Royal Bank just declared its largest year end profit EVER $111 billion and is giving out 1.2 billion in bonuses to its staff. They arent hurting this Christmas and neither are the other banks recording huge profits through scandalous credit card and ATM rates. Justify charging 19.9 % on credit cards when the Bank of Canada rate is .5% or mortgages can be had for 2.9 % and heading lower. The banks are making huge profits " on the backs" of people struggling to stay above water who are behind on their credit cards or just making the minimum payment. Being a bank employee now is akin to working for the Government.
  • BC Broker | 09 Dec 2015, 09:43 AM Agree 0
    One thing I know about Economists. Half the time they're right and half the time they're wrong. They're also good at explaining why things happen but usually not as good at predictions, otherwise they wouldn't be working for a bank or government but would be lavishing on a beach somewhere with all the millions they made by acting on their predictions. But the real issue is that as a community brokers can have an effect on the market by how they present market conditions to the general public. Why a brokerage would see any advantage to having an employee predict gloom and doom is beyond me. Gary...reel it in will ya?
  • Victor Simone | 09 Dec 2015, 01:06 PM Agree 0
    I put these types of predictions in the same division as weather reports.

    Sometimes the last people that know are the ones in the know. I don't even know if it will rain or snow today.

    Timing the markets is an idiot's game. This isn't a stock folks, we live in this investment.
  • Gary Mauris | 10 Dec 2015, 01:31 PM Agree 0
    Dear BC Broker,
    I recently had a very thorough discussion with Dr.Sherry Cooper about the Canadian housing market.Rest assured, these comments were part of a much larger dialogue and this article was consolidated snippets/pieces of several economists and other sources of information. In fact, we have recently completed a 30 year look back report, that reviews both housing sales and prices adjustments that we will soon be releasing. I think you will find the report very interesting.

    Lastly, we would never attempt to steer, alter, muzzle or direct our Economist in anyway. We pay her to provide research, and un-unbiased opinion on many areas of the Canadian economy,including the housing market. Anything less would diminish the integrity of all economists/research and they wouldn't be Economists, they would be Promoters.

    Thanks for the comments.

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