Quote:
Originally Posted by nds88
No one can predict the market. Currently, the market is slowing down, but for how long and how much of a slow down is impossible to predict. Just like when the foreign tax was suddenly enacted in Summer 2016, prices still jumped 40-50% over the next 2 years.
With Trump now putting the Federal Reserve in his crosshairs, its already had an effect on their tone. Markets are now pricing in one rate increase in 2019, compared to 3 or 4 that was being expected just a month ago. Some indicators are showing signs of a rate cut too. Canada tends to follow the US with rate changes. Also, given the price of oil has been hammered again, Canada is not in a great position to mimic the rapid rate increase. In Jan 2015 Canada made a surprise rate cut (at a time when it was expecting rates to stay flat or increase) due to oil plunging below 50USD a barrel (which it is now). This could happen again. Interest rates play an important factor on prices.
Canadian buyers are getting hammered at both ends, with the stress test and the rate hikes. China is getting hammered with the trade battle. 2019 will be very interesting. I think there is a possibility of a rate cut, Trump inks a deal with China, Trudeau gets booted out and the Conservatives come in. These are all factors that could turn the slow down around.
Back on topic, personally I didn't feel comfortable in the sales center. Although the staff were nice, the branding and styling makes it feel likes its trying too hard to create a boujee, snooty atmosphere. Calling it a sales atelier instead of a sales center. A sanctuary instead of a balcony. Very dark inside too. The bathroom, IIRC, consisted of a dark grey/black stone that comprised the bathtub, sink and floor to ceiling tiles. Gave me the vibe this is where Cruella de Vil would live.
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And also to add - locally, the return of the provincial Liberals, who I imagine would largely roll back some of the affordable housing initiatives the NDP have put in place.
2019 is a write off. 2020 we bottom out. 2021 new cycle starts. If I were a gambling man...
All that being said - selling out a tower at these prices, in this political and economical climate is one hell of a vote of confidence, I mean unreal.