Pressure on Bank of Canada to bailout real estate investors, power of sale | Page 2 | General financial discussion | Discussion forum

Bill said
I've been around a while and I honestly can't remember a time when more than a very few folks lost their homes due to economy problems, just hasn't happened in Canada. I remember when $200k was considered to be a crazy price but then it just kept going up and now $1 million or so seems crazy but likely it'll just be the same, soon we'll think $1.5 million is crazy, etc. Maybe different in boom-bust places like Alberta, I don't know, but GTA, etc I can't remember mass defaults ever.  

Really? I can clearly remember my sister crying to my mother in the early 80s their mortgage was going from 10% to 21% and they both had to take 2nd jobs and eat spaghetti 150 different ways to keep the house. I remember many houses for sale with foreclosure written . My Buddy lived in a condo left the keys on the counter and walked away, so many condos went bust they turned into rentals.My first Mortgage in 1988 was at 10 % . All of this realestate price rises & inflation ,has been caused to too cheap money for too long . Blame the government they wanted cheap money to borrow and spend which they did like druken sailors. We are just starting ,the bank rate will have to be higher than inflation to tame it . Housing prices are already falling and hundreds are being taken off the market. But realestate will tell nows the time to buy , just like John Roth telling people nows the time to buy Nortel ,all while he's cashing in millions before it crashed

mechone said

But realestate will tell nows the time to buy , just like John Roth telling people nows the time to buy Nortel ,all while he's cashing in millions before it crashed  

I can't speak to your experiences, but that's not me. I am on record with my clients, that anyone who bought a waterfront home or cottage for example in the last 12 months in my market is out of their mind. Doesn't make me any sales, but I am confident in my opinion.

It has been however, as of today, a great time to sell. But IMHO it will be for less than February/March this year.

Broadly speaking, anything that makes real-estate dealers happy is a Bad Thing for everyone else (save perhaps the REIT guys). The dealers are always saying we need to get more money out there and more people into the housing market - exactly the prescription for endless commission bloat and the prolongation of The Bubble and an increasingly disastrous collapse when it comes.
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