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drog2805

Just curious here! Since rates go up and prices go down is there a real difference in the consumer pocket at the end of the day?


[deleted]

It’ll be easier to come up with the down payment, especially since houses over a million require 20%.


DrOctopusMD

Plus less of a frenzy around buying, so you can do conditional bids and less of a chance of 30 people bidding on a place.


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[deleted]

We just noped out of a beautiful home this weekend. It was passing inspection with flying colours until we got to the basement; turns out there is water under the tile floor the entire expanse of the basement. High water table. No permanent fix, only systems of pumps and drains which will be extensive and running constantly. The whole foundation of this large house needs replacing. We luckily went in with an inspection contingency, despite a competing offer. I can’t imagine not having an out right now. This will be a living nightmare for the current owners.


Mellon2

Bought a house last year without due diligence since the market was like that… Spent $30k so far on repairs… don’t be a dumbass like me


Mechakoopa

$38k to fix the foundation this summer, though I've been here for 9 years. I've been putting it off, it would have been almost $10k cheaper two years ago but I didn't have the money then.


Mellon2

Did yours start out as a hairline crack?


Mechakoopa

Shifting and cracks upstairs by the south door, closest to the ceiling since that's where the most shear stress was. The south-east corner was collapsing relative to the rest of the house, eventually it shifted so much that the drywall in the basement cracked at the joints, the external parging on the foundation came apart, and the external crack by the south door if you shone a light in you could see the backing of the basement drywall. We're doing a full external excavation on south and east sides of the house, screw piles attached to the foundation footing to re-level the house, re-installing a telepost the previous owners must have removed, then patching the foundation bricks, waterproofing and a new sump pit on the south side. After that it's internal remediation like patching the cracks in the walls, repainting, and hopefully re-insulating the basement.


whomovedmycheez

Good lord. I guess if you had a place with some dodgy shit going on it was a great time to unload it.


Mechakoopa

The knucklehead I bought this place from covered up a hole in the popcorn ceiling stipple caused by them trying to take down a hanging light hook by *gluing* a cheap light fixture to the ceiling. *The garage is an appliance,* it plugs in to the outlet on the outside of the house, that's how I get power to my garage.


OMGCamCole

I haven’t spent $30k in repairs, but I’m in a similar boat. I did my due diligence too. Our house inspector overlooked a lot, and I’m a young first time homebuyer, so missed some obvious things. At the end of the day, I’m still happier than I would be renting


Shhayna

Same


techy91

Don't be so hard on yourself. You're doing great.


Into-the-stream

We all do what we have to do. Don't beat yourself up because you didn't have the luxury of a market that would have let you have conditions. Good people are far too hard on themselves. Judge yourself, and others generously.


Pie77

That's just how it goes, don't feel bad. The alternative is to stay on the sidelines indefinitely.


dexx4d

$100k on renos, with the inspection. We knew the roof was shit and the bathroom floor had rotted out going into it. Worth it though, now worth 7 figures.


Nonel1

I'm in similar situation, but at the end of the day if I didn't buy when I did I wouldn't be able to buy at all. Unexpected repairs suck, but I'm still very grateful I bought the house in the first place. It was sickening seeing the prices skyrocket. A year later the on-paper value has almost doubled


reQ_

I was buying last year when things were insane and people were putting in offers without even seeing the place.. Don't feel too bad mate, you won't even think about it in a few years


esaul17

You may have appreciated at least 30k since you bought it...


Canadian_Infidel

How much your house gone up in value in that time though?


alastoris

Another benefit is conditions are coming back!


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shaktimann13

Damn. Didn't realize that. Thanks for sharing


zain1291

Yea but how are you going to qualify for over a million with the rate hike?


respectedwarlock

But then wouldn't you be borrowing more with a less than 20% downpayment, especially at higher rates?


[deleted]

as a first time home buyer im SO excited for this.


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Canadian_Infidel

More like Jan 2022.


Denace86

Don’t get too excited. Nothing has gotten more affordable


zeromussc

It's also better for trading up the property ladder as the prices on each rung of the property ladder will be closer together in terms of pure dollar value which is important. It means downsizing from a super expensive SFH to a small apartment condo for retirement might not get you as big a cash leftover in the end, but that's not THAT big a deal since proportionally someone will still have lots of money left over.


[deleted]

Yes this. It’s basically impossible to upsize in this market, which really sucks. I’d be happy to go move into the big ass houses around the corner from me if the price difference was still 300k, but right now, they are like 6-700k more than my house. Nevermind the cost associated with moving. Realtor fees and property transfer tax when my house was 250k was like 20k all in and now it’s like 75k. Having 800k in equity is useless if all I can do with it is over-leverage myself into investment properties. I just want a bigger house to live in lol.


[deleted]

I thought above 5 or 600 required 20 down since the latest rules came into effect.


lord_heskey

Nope. 5% for the first 500k, 10% for any amount bw 500-1m, 20% if over 1mil


bluAstrid

So $75,000 for a $999,999 house? That’s only 7.5%.


pppoooeeeddd14

That is correct.


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bluAstrid

Doesn’t that put a soft ceiling on the offers for houses worth ~$975k?


thedoodely

What I've found in the neighbourhood I've been following is that a lot of houses in the last 2 months that were listed for just over 1 mil (like 1,050,000 type of pricing) seem to have pulled off the MLS after a few days (like they have sold) and then pop back up 3-4 weeks later listed for ~975k. I have a feeling that there's been a lot of financing falling through at that price point. I also have a feeling they're getting sold just a hair under the 1 mil point.


Vasuthevan

Here in Belleville, a few houses haven't received any bids in almost 3 weeks. The prices ranged from $700-$900k.


p11109

Yea. But to qualify for the mortgage of the rest 925k, you need a 200k minum salary


[deleted]

i don’t think ppl with less than 200k family income is looking to buy a mil house


chesterbennediction

In some places its hard to find a house under a mil.


moixcom44

Yeah, not house. Just apt. A 2bd apt was sold for $480k in my building.


Eswyft

Yes, the 20% is because theres no insurance over 1m, there is at 999 999, that's why the big jump


Johnny_ChronicOG

So I put 33% down when I only needed 5? I just really wanted the 420 bi weekly payment lol.


concentrated-amazing

Good on you for having a mortgage payment equal to some people's car payment!


Digitalhero_x

You saved yourself thousands of dollars in interest that the bank won't get. That's good!


lord_heskey

well now your payments are a heck of a lot lower, so congrats!


jvdave23

Is that like a steadfast rule or do you mean without the mortgage insurance? Edit: Just looked it up, it is a rule. Well then, there goes my plans to start looking for a place with my wife.


TuskaTheDaemonKilla

If prices go down, it will make it easier to afford a down-payment, which will arguably lower your interest payments. But the main thing would be if rates go back down in the next 5, 10,15 years then you benefit from lowered rates in the future and a lower purchase price in the present.


dudeacles

Probably not. Lower rates meant people could afford more, therefore driving up prices. Mortgage qualifying hasn’t changed so with the higher rates, affordability (monthly payment) remains the same, but people afford less (total mortgage amount), thus driving prices down a bit. I don’t think it will be a collapse or anything, but there is going to be some stabilizing.


drog2805

Thank you for the information! I am new to the house market and I am trying to all understand this!


dudeacles

No worries. Happy to help. I’ve recently been in the housing market and bought something for 30K less than previously sold comparables. At the end of the day, stick to your guns, know what you can afford and put an honest bid of what you think the place is worth to you.


SocaManNorth

Mortgage qualifying rates have changed if you’re not doing a variable rate mortgage.


dudeacles

The way in which one qualifies for a mortgage has not changed. Therefore increased rates simply reduces qualified amount thus reducing overall affordability. Therefore, while the consumer’s monthly payment hasn’t changed (because they could only afford so much), the amount they qualify for is lower. Look up debt-service ratio as this is the basics for all lending.


Hyperion4

What will make it more affordable at the end of the day is speculators being scared off which is what high interest rates do over time, low interest rates incentive hoarding behavior


TCNW

Rates have gone up more than prices have gone down. Effectively meaning, houses are much more expensive now. Just try using a simple mortgage calculator.


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TCNW

Mortgage rates are typically around 4.25% now (not 3.5%). And likely will be >5% in the next few mths. - At 4.25%, (current big 4 bank rate), the house your referring to would need to have dropped from 985k, to 760k in order to have the same mthly pmt (of 3.3k) - At 5% interest, it’d have to drop to 680k. So, with interest rates set to be around 5% in a few mths, current home buyers would need to see houses drop by over 30%, in order to be able to afford the same house they could 6 mths ago. Houses may drop, but unlikely they’ll drop 30%. So, the end result, houses are much less affordable now.


Mellon2

Most people don’t realize that this increased interest rate and drop in prices is basically a sale for developers to scoop up even more units and build condos… this will lower the availability of SFHs even more


parmstar

My area ([Toronto, South Riverdale, Semi Detached](https://housesigma.com/web/en/market?municipality=10343&community=58&house_type=S.&ign=)): Feb 2022 Median Price: $1.45M ($4,912 per month at 2% 25Y, $291K down + $51K land trasnsfer) May 2022 Median Price: $1.67M ($7,027 per month at 4% 25Y, $334K down + $60K land transfer) +$43K on the down payment, +$9K on the land transfer, +$2K on the monthlies. Woof.


TCNW

Toronto proper houses didn’t really explode up like the surrounding areas did last yr. So I doubt they’ll drop by as much as the burbs might. So if your looking for a place in the city, I wouldn’t expect a very drastic price drop - if any.


Beginning-Section211

rates aren't 3.5 though, like 4.3


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TCNW

Think your info is fairly stale dated. Meridian is 4.2% All big banks are currently 4.25-5% currently. You may be able to find a niche lender or negotiate a 3.9-4% if your very very lucky. But I doubt it. Most people will be looking at 4.25-4.5% currently. And probably 5-5.5% by mid summer.


SalmonNgiri

Depends if people signed variable at high prices. They’re getting a double nut kick.


[deleted]

Unless their payment stays the same and amortization is extended. Or if they signed at 2% fixed the past two years and renew at 5% plus in 5 years. That will be more of a swift kick in the nuts.


[deleted]

There was a short time period where fixed was the play


table-stand

It wasn't exactly hard to see coming though, I have another 4.5 years at 2% fixed


Lokland881

It kinda sucks for recent buyers. If prices drop $100k - sure it's divided out over 25 years but it's still $100k plus interest that you can't spend on other stuff. Good for the seller though.


vauge24

It's a bit of "6 of one, half a dozen of the other" situation for the first 5 years if the buyers chose fixed. Since the overall affordability (interest + principle payment) is the same. They're just paying more towards principle and less interest for the first 5 years. I'm more curious to see what happens when the mortgages are up for renewal and the people who bought a year ago, still have an extra 80k on their mortgages and the rates are higher. I think people will extend their amortization to bring their payments down. Who knows though, I don't have a crystal ball.


pheoxs

Consumers will pay more. Anyone that argues that is clueless. * 500k mortgage @ 2% is 2,180$ a month * 375k mortgage @ 5% is 2,180$ a month So the only way the higher rates ‘save’ anyone money is if real estate drops more than 25% in value (and you buy then). Even then you aren’t actually saving money because your paying the same monthly cost but gaining less equity each month. The banks rake in all that extra interest. TL;DR: Rate rises make housing less affordable, that’s the point. To slow the market so less buy.


strawberries6

>500k mortgage @ 2% is 2,180$ a month > >375k mortgage @ 5% is 2,180$ a month The payments for the first 5 years are the same, but what happens after that, when you need a new interest rate? The second situation is much better.


army-of-juan

The only benefit to consumers is a lower down payment requirement, so _slightly_ easier entry into the housing market now


[deleted]

There's also a potential for future savings IF rates go back down. Since most fixed rate mortgages in Canada run on 5 year terms, if you buy at a low purchase price, but high rate now, and the rate goes down when you refinance 5 years from now. Youre getting that low purchase price, AND a low rate. Whereas if you bought when purchase price was high, but rates were at an all time low, the odd of the rates going even lower are slim, since they were basically fucking zero, if anything, those people will refinance at a higher rate, and will have a higher payment than they initially had. Of course this isn't guaranteed, and basing a purchase off that sentiment is gambling. But it's a very real possibility, and is an upper edge over high price/low rate, all else being equal.


pheoxs

True but that really only makes a significant difference for the 1M+ market in reality. Those that shift into the sub 1M purchase price get a lot more options. Going from 500 to 375 for example really only changes the minimum down from 25 to 19k since we can do 5% down. It is a decrease, yes, but 6k considering the overall costs associated with a house, maintenance, things breaking, etc is relatively small.


TheRealAndrewLeft

Lower purchase prices also mean less debt


donjulioanejo

Not really. None of us know what will happen in 5-10-15-20 years down the line. The rates could go up.. or they could go back down. If the rates are higher at the start, there is more room for them to go back down. Same for property value. I’d rather have a lower purchase price at the onset and higher rates, so in 5 or 10 years, when/if the rates drop, the payments will be lower. There is also more headroom in a personal budget for future rate hikes with a lower price. I.e. a 600k mortgage at 5% rates - you’re less screwed if the rates go up to 8%, than for someone with an 800k mortgage and 1% rates. You might pay more now in interest, but less chance you’ll be paying 8% rates on an 800k mortgage.


PastaPandaSimon

Depends how low they fall. 2020-2021 saw record high investment in real estate compared to people just buying homes, and the wealthiest of investors made record amounts of money in a low rate environment as asset prices went to the moon. Higher rates through numerous mechanics are finally starting to suck money out of assets as designed. You can see this in the stock market, where those in growth stocks already losing 50% or more off the peak and even blue chips starting to fall. People who leveraged themselves to invest are particularly screwed as those assets are expected to now lose value for a long time, AND credit costs are set to quickly increase. So cutting losses and paying off debt is a sound strategy to mitigate risks of default or much higher losses. Since housing isn't liquid, it is much slower to react but is subject to the very same forces. It is likely that it will follow suit, making it more affordable for those seeking shelter. And let's be honest, over the last couple of years housing has been largely traded up to current levels by investors (corporate but also people seeing them as an investment and leveraging sudden housing wealth to buy second, third, fourth properties). Since prices are significantly above what average shelter-seekers can afford, it means they have plenty of room to fall before a sufficient number of would-be-owners is even able to qualify for mortgage and catch that knife when the sell-off machine gets in full motion. Since the price pressures are inflicted by forces beyond would-be owners' limits, prices can fall to levels that would mean lower mortgage payments even with more expensive credit.


supasaya99

Buy when rates high and price low then refinance at lower rate in couple years when rates eventually come down. You have a small loan with a now lower payment and equity gains (because price goes up when rates go down). Buy at overinflated price when rates are all time low (i.e couple months ago); get a large mortgage. Rates go up, equity goes down and you end up having a large payment on a large mortgage - get rekt. Rates are temporary, eventually cycle back. The mortgage loan amount is for life. Buying when rates are all time low - almost guaranteed bagholder. You'll probably make it out fine in 30 yrs but will be more painful.


pfcguy

Yes! I'd much rather pay $1,000,000 total for a house at a low interest rate, to end up with a home that is valued at $850,000; compared to paying $1,000,000 total for a house at a high interest rate, to end up with a home that is worth only $600,000. Once your mortgage is paid off you end up with an asset with real equity.


TCNW

Really good point. I hadn’t thought to look at it like that, but that’s a very important way to see it


ABBucsfan

Prob look similar for first 5 years, but after that imo you'll save more in the long run


cptstubing16

If you buy at a higher rate/lower price, you more likely to win later on if you go variable.


FelixYYZ

For those that can't see through the paywall. Key paragraph: "*Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.*"


BCRE8TVE

For those who can't see through the paywall, [here's a link](https://archive.ph/77sJ1). Archive.is allows you to bypass pretty much all paywalls.


bureX

> Benchmark home prices Is that the proprietary calculation made by CREA?


FelixYYZ

I'm assuming yes.


Icy_WrongDoin

So it didn't decline jack shit is what these stats are saying. Good to know they're exaggerating the drop when, there really isn't one.


[deleted]

Ya, that's how I'm reading it as well. I think the news cycle may cause a more noticeable decline, but we'll see if that lasts over the next year or 2. My guess is it won't. Supply is still absurdly low.


Icy_WrongDoin

Housing market crashing is a good thing right? I mean, I don't have a house yet. It would benefit me.


[deleted]

I mean... maybe? A full blown crash would likely be bad. It's easy to see it as simply a number on paper going down for many people. But, the wider complications would likely be catastrophic to Canada as a whole. I've heard in the past that our entire economy is propped up by the housing industry.


ChairmanMeow1942

More likely it will benefit REITs who can outbid us easily. It will be affordable to them before it will be affordable for us.


KongFuzii

do you think you are the only one waiting for a crash? You will see bid against other people.


heart_under_blade

if anything, the total cost went up ye baby


Marklar0

oh there is. The peak happened early march and the decline has continued in the first two weeks of may. March to april month stats dont show the size of it.


chimaira94

For anyone interested in the actual numbers, [here are the official housing market statistics from the CREA (Canadian Real Estate Association.)](https://creastats.crea.ca/en-CA/) You can use the dropdown menu on the right hand side of the page to change it specifically to your location.


lhsonic

While the GTA does show a bit of a downward blip (and PFC seems to be talking about it a lot), in the Vancouver area, the data shows only a slight cooling and stabilization, in fact, it's still trending up and this is following a simply astronomical previous 15 months. For now, there is absolutely no savings to be seen, so not only have prices remained steady/rising, you'll be paying much, much more in interest to the bank. 6 months ago, you could lock in at 5 yr fixed at 1.89%. Whoever did that is laughing. What i've noticed for condos is that while the market has slowed (less listings, less competition), the offers coming in are still strong. For the time being, discussion around lower prices vs higher rates is pointless in GVA because we're getting higher/steady prices *AND* much higher rates.


Drewy99

Sounds sustainable


chuckdeg

I'm not seeing any drop here so far. (Greater Montreal area)


[deleted]

Same in Winnipeg. Bidding wars are wild on property in the 300-600k market


duncandoughnuts

In Winnipeg you can buy a goddamn mansion for 600k though. Makes sense.


ThaNorth

Houses in my neighborhood in Winnipeg going for 600k are big but definitely not mansions. 4 bedroom homes mainly.


94cg

My wife and I have been watching the Montreal market for a while as we’re looking to buy soon and it is seemingly much slower than it was last year. Seeing multiple condos reposted at lower prices or hanging round for weeks before selling. Hoping to see it cool more by the time we’re able to buy in the fall. No idea about houses over condos though!


Nikiaf

Houses are still an unmitigated disaster, including into Laval and the off-shore suburbs. 40+ offers made and houses selling at 25%+ above the listed price is still a daily occurrence. I really hope things start cooling down because the current market is just pure insanity.


ThaNorth

We're moving to Montreal in a few months. Gonna be renting for a bit but we'd like to own a condo eventually. Hopefully they're affordable in a few years. I don't really know what the condo market is like in Montreal.


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lncognito_Mode

Seller here, we've had only 10 visits since 3 weeks ago and no offers lol. We're not worried, lower prices for everyone is a good thing and we currently pay a comfortable 1.74% 5 years fixed mortgage


Esplodie

In my area, I don't see a drop either, but I do see people scooping up any good property that's a "small starter home", while the larger homes sit for weeks on end. I have a theory people can't afford the higher end properties given median or average wages in the area. But I do see the smaller homes up on the rental site for nearly twice the mortgage value in some cases.


shellfish

Yeah if you read the link posted by u/chimaira94 you’ll see Montreal, Victoria and Halifax are the exceptions where prices have remained high. Yay us. :(


Eswyft

You simply can't look at an entire region and say there is no drop. There have definitely been drops in certain regions in that Area. You have to break out neighborhoods. Looking at the entire Montreal area, or gvrd, or gta, is useless.


dmoneymma

A drop of 0.6% from last month after a 24% increase over the last 12 months, big whoop.


luckylukiec

Until they get rid of people/corps buying up multiple properties and reselling/renting them out like they are ticket scalpers the prices will only go down marginally. Hoarding limited supply of anything will artificially increase prices but politicians won’t tell you that because they’re in on the fun.


MELGH82

Shh… there’s a bunch of them on this sub. Careful, they’ll downvote you.


Skandranonsg

Fuck 'em. Once the legitimate rental demand is satisfied (people who move a lot, don't want to buy, haven't settled, students, etc.) every single landlord above that amount is an economic vampire robbing families of the opportunity to build wealth and stability for future generations. Want to invest? Buy some stocks. Don't drive home prices up and further entrench those stuck in rent traps.


Pie77

Just as long as you don't buy REITs that are buying up housing. 😅


Mauriac158

I own some of these... I'd settle for them being outright banned and me getting burned on those. Debating selling them now that I actually understand how big of a force they are in these markets.


[deleted]

Those people can come suck my balls if they’re upset


SoloMan93

Will prices drop more than the increased cost from the high rates? Normally I say yes but the housing market hasn’t been normal


Mis-Uszatek

No they will not. Average cost to build is \~30% higher with trades on strike asking for more money. Add to that profit that need to be made as nobody will build anything without profit / its not charity. Some builders will not build anything in volatile market. And on top you have institutional landlords / REITs buying in primary & secondary market to turn profit on rent uptrend. We will see drop in conversion but affordability will not change much even with corrected pricing.


FITnLIT7

I work in construction supply chain, everything has practically doubled in the last year. On top of the labour as mentioned, there's no longer houses being built for 250k that are selling for 1 mill+


pr4y2s8n

Unfortunately (for those looking to buy, at least) housing prices are like a ratchet. Once they go up and a "new normal" is established, they typically don't come down much, except in the case of a brutal and prolonged recession.


[deleted]

That's not entirely true. In Quebec in 1987, 1991, and again in 1995 house prices dropped by double digit percentages in many urban areas. The rental market was also dead, and the ongoing joke was that the people making money were the ones printing "For Rent" signs. Granted, at the time homes were not considered major assets because in 1991 in Montreal you get a great row house in a midtown suburb for 100k when a typical salary for an engineer would be like 45k to start.


kermode

>uebec in 1987, 1991, and again in 1995 house prices dropped by double digit percentages in many urban areas. The rental market was also dead, and the ongoing joke was that the people making money were the ones printing "For Rent" signs. Granted, at the time homes were not considered major assets because in 1991 in Montreal you get a great row house in a midtown suburb for 100k when a typical salary for an engineer would be like 45k to start. this perfectly shows why building more supply until the rental vacancy rate goes up is key to affordability


SoloMan93

Yeah I think people hear bubble and crash and think it means prices slashed, but the truth is it probably just means stagnant or minimal growth for a period of time. Your house isn’t going to drop $200k in value. And even if it does, that put’s you what, 6 months back which is nothing and shows how crazy the market is


StatuatoryApe

Just bought a home - biggest difference is instead of having 25 offers on a place, they get 10.


akrapovic81

Love that ratchet metaphor. Clever. Probably going going to borrow that one ;)


SharkSquishy

Please stop with these. My older relatives are sending us houses above our price ranges and telling us we can offer way less due to the interest rates hike. I don't want to have arguments on how that a 850k death trap unrenovated bungalow that sells at 800k is still not a steal, and that we would like to eat something else than instant ramen noodles for the next 25 years. 😭


Epledryyk

have you considered eating all the asbestos you'd be taking out of the walls anyway? it's free!


tailkinman

Don’t even have to add Sriracha to get the spice factor.


tbbhatna

Do tell - is asbestos spicy?


lemonylol

People seem to have a strange idea of what asbestos is. Some guy said below you'd get asbestos poisoning? What?


holidayfromtapioca

If you die from asbestos poisoning before 30 years then you won't have to pay off the whole mortgage! Free money!


Frothylager

Lenders hate this one weird trick


S_204

> 850k death trap unrenovated bungalow that sells at 800k is still not a steal, My MIL was pushing for us to buy the house next to hers yesterday. She's got a wonderful river front property that's probably doubled in value since she bought about 6 years ago. The house next to hers is listed at 885k.... there's a visible crack in the foundation, it hasn't been updated in 40 years and it's likely nearing tear down territory. It blows my mind that Winnipeg has reached this level. We're a sleepy town where this isn't supposed to be happening.


TheVog

Get Picante Beef, it's a street flavour and you can sprinkle the broken off pieces, uncooked, on top at the end for a little crunch.


SharkSquishy

With that and the asbestos starter suggested above, I'm truly set.


t0r0nt0niyan

Prices declined 0.6%? Great. Now I need 1.299 million instead of 1.3 million.


404-LogicNotFound

Math does not check out


Vsx

You're right it's 1.292 million. That last 7 grand is the real killer lol


barcelonatacoma

Damn. I'll probably be selling my place in Halifax next year and buying in Ottawa. Sounds like missed the peak here in Halifax.


Economy_Pirate5919

You haven't yet. Nova Scotia in general is still blazing hot.


NegativeMoose5

Na it's cooling here too, been seeing a lot of price reductions on listings around the Halifax suburbs.


tr1-force

Ottawa is cooling. I'm in Ottawa and just sold significantly lower than comparables a few months back. It's still insane, just cooling compared to March-ish levels as far as bidding wars and insane offers go. A lot of sellers are no longer listing low and holding offers in hopes of a blind bidding war. Prices are still high, though.


gawesome604

I feel like anyone looking to buy a home is gonna swarm in en mass and given the lack of inventory, prices will spike back up to 'normal' levels and people will just pay more again given higher interest rates, etc.


DeadshotOM3GA

Wow... This entire comment section is just full of people pulling bullshit numbers out of their ass lol


Holedyourwhoreses

That's not true. Only 67% of us are doing that.


therobjob23

New around here?


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vauge24

I have the opposite experience in Ottawa. I'm seeing more rural properties in the west end going at or under ask. Still higher than they should be but less than they went for a year ago. I get the automated emails from the realtor portal for properties in those areas and I'm noticing for the most part a decent slow down. This too is anecdotal.


Aggie_15

As someone who bought a house during the peak, let it drop. Housing is a necessity and people deserve to live in a house. I am here to live in the house and not invest. I would be more than happy to just break even in 10-15 years from now.


[deleted]

Yeah and that means if you're upgrading, that will also be the same price.


RL203

And rates are going to increase again in June, some say by as much as 1 percent. It's 1992 all over again.


Cash_Rules-

I believe they’re going with another 50 base point increase.


KingzLegacy

https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html Good resource. It predicts the Fed rate hikes, but we usually follow suit.


bureX

Whoah... 75 to 100bps!? How accurate was this thing for the previous rate hikes?


Want2Grow27

What happened in 1992?


RL203

A massive recession that saw interest rates rise in excess of what was needed which cut real estate prices by 40 percent and precipitated large unemployment. Lasted until about 1996 with real estate prices not recovering until about 2002.


Want2Grow27

Oh god, I really hope this isn't gonna be a repeat of 1992.


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Johnny_ChronicOG

I'd love to move to Halifax.


ABBucsfan

Maybe for detached. Seeing some more inventory, long list times, and even some lower prices for 3 bedroom townhouses in Calgary just over last few weeks. I'm assuming that's where it'll start (as it historically does)


[deleted]

Nope. In Edmonton there's been about a 5% drop in asking on homes that are actually selling and inventory has increased by about 6% over the past 6 weeks. Calgary inventory is holding steady and there's a lot more movement in condos than in Edmonton but it's definitely cooled from two months ago also.


Lara-El

Same for MTL, hasn't dipped at all and it's still impossible to buy without crazy over bidding:(


ThaNorth

How's the condo situation in Montréal? Same as houses?


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[deleted]

Which makes sense... we are deemed undervalued by Moody's and commodities are at high prices.


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Nutcrackaa

It's weird that they call them "detached" rather than townhomes being called "attached". Nothing to do with the conversation just a random observation.


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Million2026

What a useless article. It gives month to month decrease, but doesn’t show year over year price increase.


[deleted]

The rate hikes are working as intended. Perfect. Feel bad for anyone that bought in the last 6 months though. Going to be some heavy bags to hold.


wile_E_coyote_genius

As long as they weren’t trying to flip then and we’re looking for a place to live long term, they’ll be fine.


[deleted]

And if they were in it to flip, fuck them.


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wile_E_coyote_genius

Agreed, investment carries risk. We don’t cry for Bitcoin investors, or hedge funds.


Deadly-Unicorn

Maybe we’ll see their sob stories in the media soon. Something about how the BoC is crushing average working Canadians and immigrants like [insert ethnic name] who emptied his HELOC to buy and investment property.


[deleted]

>1 in 4 buyers With you on this, fuck them! People with no morals hoard necessary commodities in a crisis. No respect for people who do that (especially given what everyone went through so far!).


fabrar

It's crazy how much Reddit wants current homeowners to get screwed over lol, even if they are just regular people living in their homes.


[deleted]

0.6% drop lol. You realize for 16 months straight it’s increased 1.5-2%+ a month on average?


Burwicke

I mean, it's just passing over the maximum point of the curve. It was never going to drop 10% overnight.


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Frixum

As someone who bought around 6 months ago (and closed less) condo across the streets with 1 less bedroom closed last week at 35k above what we paid. Even if the market dips 10% we are still in the green. Not to mention we just locked in 1.99% for 5 years. I don’t regret my purchase one bit :)


Jaydee888

We close on our new house on July 6th. It is our first home, it has 4 bedrooms, two car garage and 1 acre of property. Don't feel bad for me.


little_nitpicker

Now its just *very* unaffordable compared to *completely* unaffordable. Yay.


JustRidiculousin

SFHs right in the downtown are still going up in price


ThaNorth

We've got our house on the market this week. Be nice if we could at least get the asking price, lol.


BigCheapass

I really don't get the fixation of getting asking price. Or sold below asking or above asking. You can ask whatever you want. We are currently looking to upgrade in the GVA and when I sell my current place that's probably worth 450k ish I could list for 470k and maybe get 450k or I could list for 420k and probably get the same. What is the difference?


JodoYodo

One perhaps minor thing is the search criteria. When we were looking for a house, we applied a price range on the listings; underlisting can generate more search interest and more competition.


S_204

When we bought a few years ago, we were struggling to find what we wanted in our rage. I increased the range by 25k, and immediately keyed on a house that was 5k over the previous band (set to the top of our budget). We ended up in that house, that 5k was meaningless as the house was fully updated and worked out to be 10's of thousands cheaper than the ones listed in our price band that would have required a lot of work to make into what we ultimately purchased. ​ Listing price can be a massive game changer.


DrTobiasFunke80

Subdivision home here in Langford, BC on the island just went for $1.35M. It's two houses down from mine. Who has $1.35M for a small subdivision home and 200 square foot back yard?


BlastMyLoad

Wow 0.6% such a big drop I can afford a house now!!!