Housing market - Page 3

raisethehammer · #1 Posted **Sep 23, 2008, 1:10 PM**

not too sure about 09 predictions, but over the past year prices on the Mountain and Ancaster dropped 2% while prices in the lower city (what you probably know as 'Hamilton' itself), have risen by 5%. 5% may not seem like a lot, but it's fairly significant considering it takes the entire lower city into account - steelmill neighbourhoods and all.

SteelTown · #2 Posted **Sep 23, 2008, 2:41 PM**

I've been going with my parents doing some house hunting and the new houses are throwing these great benefits lately. Some places are including free fireplace with upgrades like kitchen granite countertop and hardwood floors. Some even with $15,000 worth of upgrade.

I've convinced my parents to hold off for the development at the Chedoke browland. They will probably throw freebies as well. I think that area will be a stable area, not too suburban.

MsMe · #3 Posted **Sep 23, 2008, 2:48 PM**

I am also wondering if a variable rate mortgage is the route to go as well. Many times it isn't wise to get this but not with many changes in rates it can be a good way to go. There hasn't been much increase in mortgage rates the past while. My mortgage renews at the end of the year and I am thinking of taking the variable rate. A variable rate is about 4.750% for an open at the time.

FairHamilton · #4 Posted **Sep 23, 2008, 3:36 PM**

Quote:

Originally Posted by MsMe

I am also wondering if a variable rate mortgage is the route to go as well. Many times it isn't wise to get this but not with many changes in rates it can be a good way to go. There hasn't been much increase in mortgage rates the past while. My mortgage renews at the end of the year and I am thinking of taking the variable rate. A variable rate is about 4.750% for an open at the time.

We chose the variable rate, because I thought it was the way to go at least for the short-term. 6 months in and we've seen one .25pt drop in the rate and a few where it was expected by the Bank of Canada held firm. Our mortage is relatively small so that reduced much of the risk.

Personally, I don't think interest rates are going to increase by much in the next 2 years (but I'm no expert).

Ultimately, it depends on your tolerance for risk, and the size of your mortgage (i.e. potential savings vs. potential added expenses). If you like predictability then go fixed.

adam · #5 Posted **Sep 23, 2008, 11:19 PM**

A lot of young couples are buying houses in new subdivisions for over $600k in the GTA. They'll be in up over their heads soon enough. When the housing market crashes (it hasn't yet!) their value will plummet but they'll still have a $600k mortgage. This scenario will play out on a grand scale. There will be too many houses and not enough buyers.. prices will come down but interest rates will go up.

MsMe · #6 Posted **Sep 23, 2008, 11:47 PM**

Quote:

Originally Posted by adam

A lot of young couples are buying houses in new subdivisions for over $600k in the GTA. They'll be in up over their heads soon enough. When the housing market crashes (it hasn't yet!) their value will plummet but they'll still have a $600k mortgage. This scenario will play out on a grand scale. There will be too many houses and not enough buyers.. prices will come down but interest rates will go up.

That's what I'm afraid will happen. As that can happen in a recession. I've seen that before.

FairHamilton · #7 Posted **Sep 24, 2008, 1:09 AM**

Quote:

Originally Posted by adam

A lot of young couples are buying houses in new subdivisions for over $600k in the GTA. They'll be in up over their heads soon enough. When the housing market crashes (it hasn't yet!) their value will plummet but they'll still have a $600k mortgage. This scenario will play out on a grand scale. There will be too many houses and not enough buyers.. prices will come down but interest rates will go up.

A little too much doom and gloom. While I'll admit that some are in too deep, I think you are being a little too overly pessimistic.

We are not going to see a collapse like we've seen in the US.

SteelTown · #8 Posted **Sep 23, 2008, 3:00 PM**

Oh Branthaven is going to have this special, pick one of the three doors and get whatever is inside the door, could be $15,000 worth of upgrade, free applicances, free fireplace, free deck, granite countertop, etc.

MsMe · #9 Posted **Sep 24, 2008, 9:22 PM**

In the late 80s was a very hot market with high priced houses and interest rates were unreal. Then in the early 90s in that recession the housing prices dropped drastically and didn't the interest rates stay a tad higher? I forgot.

adam · #10 Posted **Sep 25, 2008, 1:01 AM**

Interesting article here

FairHamilton · #11 Posted **Sep 25, 2008, 2:27 AM**

Quote:

Originally Posted by adam

Interesting article here

Yes, very interesting. It confirms my earlier post with the majority of economists (save Merrill) views support that we won't see the same meltdown as has occurred in the US.

Thanks for posting the article.

FairHamilton · #12 Posted **Sep 26, 2008, 1:00 PM**

Quote:

In Hamilton, so dependent on the hard-hit manufacturing industry, cracks are evident in the upper end of the market. Hamilton luxury home sales (defined as $850,000 and higher) have taken a massive hit, down 34 per cent, while the entire market is down 7 per cent.

Source: http://www.yourhome.ca/homes/article/506393

MsMe · #13 Posted **Sep 25, 2008, 1:32 AM**

Another interesting article I just found as well.

http://www.canadianmortgagetrends.co...le-rate-1.html

raisethehammer · #14 Posted **Sep 26, 2008, 1:03 PM**

I get a kick out of people who act all surprised by this recent news both here and in the US.
I remember having chats with friends and financial advisors 6-7 years ago about this day coming.
Too many people need to turn off the TV and turn on their brain. There is absolutely not one thing shocking about what's going on right now. The only thing shocking to me is that it didn't happen sooner.

FairHamilton · #15 Posted **Sep 26, 2008, 1:04 PM**

http://www.yourhome.ca/homes/article/506392

adam · #16 Posted **Sep 26, 2008, 4:08 PM**

Its true - most people who stopped to think about it saw all this coming way before it hit the media

raisethehammer · #17 Posted **Sep 26, 2008, 5:20 PM**

nothing hits the media until it's current...they aren't interested in presenting 'news' or 'research'.
they like hysteria and bold, crazy top stories.

omro · #18 Posted **Sep 26, 2008, 5:52 PM**

Quote:

Originally Posted by raisethehammer

nothing hits the media until it's current...they aren't interested in presenting 'news' or 'research'.
they like hysteria and bold, crazy top stories.

The British media caused the bank and housing crash in the UK as much as the americans did with their subprime mess.

If the media hadn't caused such a huge panic, Northern Rock wouldn't have collapsed. If they hadn't gone on and on about how bad the housing market was, they wouldn't have affected the general consciousness and made people wary about buying properties, thus reducing the sales and forcing house prices down.

DC83 · #19 Posted **Sep 26, 2008, 6:05 PM**

^^ I agree, omro. If Media didn't freak out about stuff, the general public wouldn't freak out, and we wouldn't be in such a mess.

The fact that people think they have to spend less is what's hurting the economy, but in reality, we are able to spend just as much as we could in the past... aslong as it's done responsibly.

I hate that people think we need to save every penny since the world's ending. Go about how you lived your lives over the last several years and everything will be fine.

adam · #20 Posted **Sep 26, 2008, 9:20 PM**

Here in Canada the media is run by a very exclusive non-diversified group.