These people are in fantastic situations. If they don't sell, they just keep their 3% mortgage and 1000 payment permanently. That's why nobody is dropping prices and nobody will drop prices…

Meanwhile in Canada we had a whole separate issue. Because of low interest rates for so long, people started to buy like crazy and snap up for investments, sending prices skyrocketing because people wanted property at any cost. It wasn't unusual to see people paying 100-250k above asking for a house because they wanted to get into the market. Those who got in early were early enough to realize massive gains because the demand stayed constant for about 4 years. Some people even managed to renew their first mortgage after 5 years for a decent interest rate when they were still low.

But people who overpaid in 2019 have now come due for mortgage renewal and they are looking at $2000 per month increases on a million dollar property. Investors can't make high enough rent to cover it, especially condo owners. This is going to continue until about 2027 when all the people who had FOMO come up for renewal and realize they either have to make FAR more money, or even worse, don't qualify for their new mortgage and are forced to sell.

Listings are up 55% in the GTA compared to this time last year. 55%. That's over 23000 properties for sale. And nobody wants the majority of the properties because a ton of them are shoebox condos that people thought they could rent out for profit or make money Air BnB ing them.

Our government is trying really hard to bail out home owners at any cost because our entire economy is reliant on it.

Canadian real estate could collapse because of the variable mortgages


In america, everybody is locked into these 30 year mortgages with 2% rate and 1000 1500 a month

Lmao didn’t they just cut the rate two months in a row

Still much worse than america

That's the Canadian M.O. though.

From what I gather every market is pricing in a cut by the Fed in September

Who here in the US has a 2% rate? I renewed one house in 2021 at 1.69% locked in until 2026, the previous five years were at 2.39% or something. The mortgage dynamics in Canada vs the US are part of the reason our rates are lower and why we started cutting rates sooner — there are pros and cons to each setup.

Orion doesn’t even know the numbers for his own country so not sure why he’s commenting on others

Yeesh that was like the worst sale timing in 2019 and best timing in 2022, right before interest rates started increasing and amid the money printing / COVID stimulus etc. I’m assuming you don’t want to link to the house but would be curious what comparables are selling for today, they clearly had no interest when trying to dump it after a price cut to $450k. Problem is that they now won’t take a big loss on it, not without divorce/death/debt.