Emphasis in quotes is mine. Yours in comments.
the market here could turn ugly too as more houses are being built than are needed, says an analysis released Thursday by Peter Hall, chief economist at Export Development Canada.
That holds true even in B.C., where the number of housing starts has begun to fall but is still outstripping demand, said Canada Mortgage and Housing Corp. regional economist Carol Frketich.
the feds are right to pull the plug by withholding guarantees on 40-year, no-down-payment mortgages.
Because, while buying a home may be the best investment many of us will ever make, it is never a sure thing. And there are times when people are better off not owning a home.
You don't need money in your pocket to buy. And the payments will be as low as they can possibly be - though the need to keep making them goes on, and on, and on.
So you'll love it if you're a speculator who wants the most-possible property for the least-possible cash outlay in the expectation that prices will continue to rise. Who cares about paying down principal in order to build equity if you're counting on ever-higher prices to do that for you?
A better option, I think, is for people to wait until they can afford to buy. And, in an odd way, this policy change will help them.
One of many factors that drive Metro Vancouver (and Victoria) home prices is the number of buyers. And it's an artificially high number as long as people are enticed into the market with no down payment and lowest-possible repayment schedules. If those kinds of would-be buyers no longer qualified to borrow, there'd be a little less pressure on prices.
Friday, July 11, 2008
Brilliant. They are finally starting to tell it like it is: (H/T s2)