Potential crises brewed in all corners of the world—including a bomb ticking in Canada’s commercial paper market. (G&M Saturday)Makes for some interesting reading, non? H/T to anon in previous thread for Journal article.
Bond traders are consuming paxil like it’s candy from a Pez dispenser. (G&M Saturday)
On Asset Backed Commercial Paper (ABCPs): call it a mutual fund of loans with a maturity date… as for the “asset-backed” part – that’s to give investors a sense of security, to compensate for the fact they have no clue what they’re buying. (G&M Saturday)
Our opinion is that natural economic cycles are bigger than anything the Fed can do and natural cycles always win—a cycle delayed only gets bigger and more dangerous. (G&M Saturday)
Taking out a mortgage with little or no down payment, interest-only payments, or an amortization period greater than 25 years is essentially the same as renting, unless you can deduct some of the interest against rental or business income. In fact, it may even be more costly than renting, if the property falls in value while you own it (Edmonton Journal, Today)
People with 40-year mortgages are also taking on car loans, lines of credit and making minimum monthly credit card payments which barely service the 22-per-cent interest they're paying. (Edmonton Journal, today)
45 per cent of Canadians underestimate the lifetime cost of a mortgage.Only one-fifth of respondents correctly answered that due to interest payments, the average Canadian homeowner will ultimately pay in the range of 151 to 200 per cent of the original loan amount over the course of a 25-year mortgage. (Edmonton Journal, today)
Canada's current real estate bubble is likely to burst within three to five years at the outside. (Edmonton Journal, today)
New on the horizon are 40-year, no-down-payment and no-interest mortgages, which produce little if any home equity. (Edmonton Journal, today) Seemingly celebrated here? (tongue in cheek)In March, a lender said it was responding to "continued demand for flexible mortgage options that make buying a home easier for Canadians."
It also cited a Canadian Mortgage and Housing Corporation survey showing "40 per cent of Canadian mortgage consumers are willing to make higher mortgage payments if it means they can buy a home sooner with a smaller down payment.(Edmonton Journal, today)
Monday, August 20, 2007
Notable News Quotes: Y2ThisTimeIt'sDifferent
Catching up on news now that I'm back home. Here's some standouts from several hours of reading:
Subscribe to:
Post Comments (Atom)
10 comments:
News release from CREA website today.
http://www.crea.ca/public/news_stats/pdfs/aug2007_forecast_eng.pdf
S2
Regarding the CREA news release.
Sounds like the same rhetoric spewed over and over by the same cheerleaders. I get concerned when I hear the phrase " the market is stabilizing. There is change in the air for sure
From my private client service listings $500,000 +very few homes sold in the last week and those at did all 15% under asking.
Not one over $1 million sold. yet again. I thought all these rich people were coming here.
One house in Fairfield, not a bad house actually started at 929,000 sold $100,000 under asking. It was on the market 96 days. Someone tell me... is this a hot market?
One house in Fairfield, not a bad house actually started at 929,000 sold $100,000 under asking. It was on the market 96 days. Someone tell me... is this a hot market?
Unless it's on the water, I can't think of much property in Fairfield that should be worth that much. We aren't exactly a huge metropolitan area.
Village,
They are asking those prices still but they are not moving This was a large house on a large lot and it was good to see that it did not sell quickly and went under asking.
I wonder if this house would have sold quickly 2 years ago?
"I wonder if this house would have sold quickly 2 years ago?"
Yes, it would have sold quickly, because the price then would have been $580,000 - in other words, somewhat reasonable. If we get a return to reasonable pricing, we'll start seeing quicker sales again.
That Fairfield house would have sold quickly - for $300,000 or $400,000 less....
I'd consider 96 days a quick sell on a house that started near a million dollars. Even with the $100k off the the list price.
Growing up, I recall the time frame of about 3 months being bantered about as the standard for selling a house. That time obviously increasing as the price goes up since your buyer pool is increasingly limited.
One more little note about the Edmonton Journal piece. 40-year am's are actually here and now. On the "horizon" are 50-year amortizations.
Have a great day! Melanie
P.S. Thanks for the mention HHV. Very appreciated.
Post a Comment