Weekly Market Update, October 4/19

Maybe it's time to switch to Median Price. LOL.

Seems the potential buyers in Edmonton misunderstood the new equity sharing rules. They push up the price of residential real estate. The stress test threshold will be raised to $800,000 Canadian after Trudeau wins a landslide majority. That will push the national home price index sharply higher as will falling mortgage rates. In a falling interest rate environment you want to hold real assets or acquire more real assets. I guess Edmontonians just don’t get it?

SOOOOO Sorry guys, there was an error in the numbers. We're correcting it right now.

A Bank of Canada interest rate cut is a done deal this October 30th after the U.S. jobs report and the Canadian PMI report. Mortgage rates will be cut again at the start of this November. The jobs numbers this October 11th won’t affect anything. Toronto home prices and rents to soar to the moon. They’ll be a lot of frozen bodies this winter in Toronto as there’s only so many hot air sewer grates to sleep on.

Hold onto your hats! I'm in the trucking industry and we are the first to notice a downturn in the economy. For over 3 weeks now it's been extremely hard to find freight from coast to coast, not just Alberta. The recession is already here. On a good point, Alberta has been in a recession for awhile now so we are pretty use to just getting by.

I would suggest being very frugal for the next few months unless your sitting on a pile of cash.

seems like an awfully large price drop on the average pricing for both SFH and Condos??

Hi Sara,

was there a lack of $1 million + houses sold this week which would explain the large drop in both homes and condos?

I know personally a friend who had to sell urgently needed to drop his house from $700,000 to $500,000 to sell in a 72 hours period. But I believe that is not the norm, even I have seen a number of $100,000 to $200,000 price reductions in the last few weeks on a number of $800,000ish homes.

I assume 2236 for sales is a typo

Here's what I'm talking about. This is what falling mortgage rates will do to the homeless in Toronto. More and more people just like this person in the video will
freeze to death this winter. This is the sad part of negative interest rates.
https://www.youtube.com/watch?v=fjwL0jkzC3w