Only in Canada Would The Government want to Slow down The one thing That is working

Freeman you said:

But what has caused the incease in prices, is that not because there is a demand created by more buyers, many of whom can "afford" to buy because of the requirement for a minimal down stroke?

grumpyrom wrote:I get what your saying Freeman but given that the prices have already risen so dramatically in such a short period, it would have a drastic negative effect to double the down payment at this time.

7 years ago my best friend bought his home in River Heights for $135,000...at that time a 10% down payment would have been $13.5K. Same home now would fetch around $250-260,000...at 5% down right now you can buy that home with roughly the same down payment BUT the mortgage payments would be roughly double. Now double the down payment to 10% and you need an extra $13K...PLUS double the mortgage payments.

Had the minimum downpayments been 10%, 7 years ago and if it had prevented these sky rocketing increases I could agree with you. However as it is, the low down payments (in some cases 0%) and low interest rates created this ridiculous increase . With this I can agree with you. However I don't agree that making every buyer who wants to enter the market NOW come up with the extra money is the solution. I thnk it would have a very negative effect on the market, very quickly.

GGF wrote:And what truly gets me going is how the federal government continues to refuse to "Tax Canadian Banks" on their profits...GGF

JTF you said:

No money down and 35 year amortizations will lead to a collapse of the market, just like the States.

grumpyrom wrote:And Freeman, yes you are correct...the proposed changes would have been too late to cool the market. It would have only killed it....lol.

grumpy old man wrote:It is not entirely a bad thing to introduce banking regulations that ensure Canadians never follow the road Americans did. Let's ensure people can truly afford their mortgages.

Freeman wrote:

grumpyrom wrote:And Freeman, yes you are correct...the proposed changes would have been too late to cool the market. It would have only killed it....lol.

Spoken like a true realtor.

GOM you said:

I think it is safe to assume that many factors have gone into the housing boom in Winnipeg. Lower interest rates. Easier credit.

But pent up demand and a change in lifestyle mostly though has driven the price of houses. The Winnipeg housing market has been largely undervalued for several years. Decades maybe.

But no ONE factor is driving this market.

grumpyrom wrote:

Freeman wrote:

grumpyrom wrote:And Freeman, yes you are correct...the proposed changes would have been too late to cool the market. It would have only killed it....lol.

Spoken like a true realtor.

No spoken like someone who would have gone from being able to buy in the next 12-18 months, to someone who could buy in another 4 to 5 years.

I'm sure I'm not the only one it would have removed from the market completely.

Freeman you said:

I think that the catch is the volatility of the market. Real estate has and always will, tradtionally increase in value, but as said, low rates, pent up demand and the alignment of the moon and the stars, have lead to substantial increase in values in Winnipeg.

GGF wrote:You're right about that GOM, but low interest rates has been the biggest of all factors and it is also the reason why the Federal government is bringing in the new mortgage regulations in April.

Umm, why is this again? The federal government is changing the regulations in an effort to increase interest rates for hosuing? You have any idea what raising the interest rate would do to the Canadian economy?

The feds are getting worried that the ones who will have to renew their mortgages at the new rates are going to find themselves in a bit of a squeeze.

I don't get it. What is the Federal government worried about?

Analysts are simply saying at the moment that the new mortgage regulations are too little too late.

Who is saying this? What do they mean by that?

The cat has long been out of the bag already.

What in the world does this mean?

That with these new mortgage regulations along with higher interest rates that are coming soon that the 2 combined will kill the housing market in Canada.

Why? Do you believe only the young and poor are driving the housing market? Don't you think that this is a gross over-reaction to some need banking controls?

I am a firm believer that it will kill the housing market. GGF

Saying it often does not make it more true though...

GGF wrote:

Freeman you said:

I think that the catch is the volatility of the market. Real estate has and always will, traditionally increase in value, but as said, low rates, pent up demand and the alignment of the moon and the stars, have lead to substantial increase in values in Winnipeg.

Freeman,

analysts are saying right now that once demand dries up the same properties could be worth less money in the very near future which means what?

...

Devaluation of the same property or all other properties... GGF

Pavolo wrote:There are hard times coming. People are carrying too much debt, never mind goverment.

grumpyrom wrote:

Freeman wrote:

grumpyrom wrote:And Freeman, yes you are correct...the proposed changes would have been too late to cool the market. It would have only killed it....lol.

Spoken like a true realtor.

No spoken like someone who would have gone from being able to buy in the next 12-18 months, to someone who could buy in another 4 to 5 years.

I'm sure I'm not the only one it would have removed from the market completely.

JTF wrote:

grumpyrom wrote:

Freeman wrote:

grumpyrom wrote:And Freeman, yes you are correct...the proposed changes would have been too late to cool the market. It would have only killed it....lol.

Spoken like a true realtor.

No spoken like someone who would have gone from being able to buy in the next 12-18 months, to someone who could buy in another 4 to 5 years.

I'm sure I'm not the only one it would have removed from the market completely.

But always look on the bright side....


You did not pay $300,000 for a house that's really worth about $69,500.

...and


You are still able to rent a three bedroom apartment for $450.00 all inclusive because of rewnt controls.