I'd say Edmonton and Calgary will bottom out next year in 2019 when the benchmark will be lower but by how much I don't know. Could be 3% or 5% or even more because I expect more defaults going forward.Posted by Wally on Thursday, June 14th, 2018 at 8:23pm
Wally, it will take 2-3 years until the interest rate will get back to normal so I see flat or lower prices for at least this period. The question is what happens with this inventory going up, interest rates raising and jobs paying less and less.... there are no raises for a lot of companies and government now and I don't see any improvement soon... I don't talk about minimum wage here...Posted by bubu on Thursday, June 14th, 2018 at 11:13pm
Interest rates will never get back to normal. The Millennial generation is ultra lazy and until there's demand for anything tangible interest rates will never go back up. Trump is raising interest rates independent of the economy in America. Paul Volcker did the same thing. After 2020 interest rates should be zero or negative again if the entire worldwide banking system doesn't implode first.Posted by Tony on Friday, June 15th, 2018 at 12:39am
I agree that we're about 18 months from big interest rate cuts, which will occur when the US enters their next recession (which is overdue, continual growth has been occurring for 10 years now).Posted by Tom on Friday, June 15th, 2018 at 1:21am
bubu, that's correct.Posted by Wally on Saturday, June 16th, 2018 at 5:17am
5 year saving interest rate up to 3% now. How banks still can give %2 mortgage?Posted by Sharon on Sunday, June 17th, 2018 at 12:05am
Lower wages, higher interest rates, more taxes = stagnation
Last thing you want is a plate of debt to eat
Tony ,your economic knowledge depth is stunning , especially about ' lazy ' and Canada economy can develop separately from US . Who would buy Canada bonds if US have higher return ? Interest on mortgage depends of bond interest rate . Educate yourself .Posted by Andrii on Sunday, June 17th, 2018 at 5:03am
@Tony please elaborate how the Millenials are to blame for low interest rates?Posted by Stu on Sunday, June 17th, 2018 at 11:07pm
Tom, you are talking about reception in Canada maybe.... look at the auto industry, Alberta Wheat, etc.. I hope other than your home you don't have any other investment in Canada... Who is buying houses for investment or even for living now takes a huge risk....Posted by bubu on Tuesday, June 19th, 2018 at 12:46am
recession not reception :)Posted by bubu on Tuesday, June 19th, 2018 at 12:49am
What are "normal" interest rates??
In today's environment between 3 and 3.5%.... If Trump will put more taxes ( 25% on auto) expect 5-6%Posted by bubu on Thursday, June 21st, 2018 at 12:51am
Umm... so if Trump puts more taxes on auto's going into the US... that will push interest rates up to 5-6%?