Weekly Market Update, June 14/19

Thanks for the weekly stats Sarah!

My father's (Rene Brodeur) home is listed with Liv as of a couple days ago. Fingers crossed. How are sales going in the NW (Castledowns)?

We sold our duplex with Liv in Carlton several years ago, so hoping for positive results again!

So the Liberals came out with their 5% giveaway today to first time homebuyers as long as their house costs less than $480,000.
Giveaway starts Sept 2nd.
Couple questions to discuss:
What if my house is valued at $500,000? If I want to sell it will I now have to list it at $480,000 to get anyone interested in it?
Obviously that is what buyers will be shopping for.

And I suspect house sales under $480,000 will drop off to near zero until September now.

Thoughts?

Wouldn't it be nice if the government just kept their inept hands off of housing and interest rates and let the market decide?

Powell will cut rates in September at the latest so probably home prices in Edmonton will finally bottom out this September. That 5 percent will probably only be used at the lowest end of the market that being apartments as buyers looking for yield may come in from other provinces or countries.

Looking at big mortgage rate cuts due to no China, America trade deal and the fallout from the lack of Chinese in the Canadian real estate market as well as Powell's speech about cutting rates.

I'm working on a post on this and will have more details soon. So far I haven't heard of anyone putting off buying for this program, but that may change.

I don't know of any stats on this... it would change in each market and over time.

Thanks!!! I hope you get great results as well. We'll do our best!! Well priced, well marketed, attractive homes are selling well almost everywhere in Edmonton.

It could be misleading to believe that the 5 percent will be used to buy lowest end of the market. I have seen many immigrants buying single family. Sara - just wondering any stats on that? (i.e. what do people typically buy as their first home?)..

How much do you think from talking to the mortgage broker you work with this will inflate prices?

To buy to rent out now the chase is on for yield. Soon rates will be zero or negative in America as each rate cut will do nothing in an ageing population with a falling birthrate. The U.S. stock market makes the tulip bulb craze look tame or tulips undervalued and you know the bankers will monkey-hammer gold and silver. There's not many places left in Canada to put money.

Plunging interest rates will increase the valuations of hard assets. Housing is a hard asset. We could see the 5 year mortgage rate in Canada below 1 percent in 2021. The government 5 percent will just fuel speculation from flippers or buyers looking to rent not from people buying to live in their homes.