goodcitywhenfinished
Active Member
Wait until the 50bps cut ripples through the lending environment and sentiment at the developer level changes. Boom time's a-comin'
- Thread starter Surrealplaces
- Start date
Wait until the 50bps cut ripples through the lending environment and sentiment at the developer level changes. Boom time's a-comin'
maestro
Senior Member
My first mortgage was 15%. I just smile at 5% being astronomically high. There are serious issues with the upfront costs for developers not proceeding without federal insurances that 50bps won't remedy. There's also that matter of whether Canada can really afford it should defaults start to happen.
The boom with 25 or more high rises under construction at any point in time will happen with investor condos.
The boom with 25 or more high rises under construction at any point in time will happen with investor condos.
Garceyues
New Member
Even if rates are comparably lower now as opposed to say the 80s, household debt itself is much higher now. High debt means that even incremental increases in interest rates can have an outsized impact.
CalgaryTiger
Senior Member
There's also the factor of the percentage of income that mortgages take up now compared to when your mortgage was 15% there's a reason the base rate doesn't go that high anymore, the economy would collapse.
Chinook Arch
Active Member
I heard something on the radio (660 news radio) this morning, and they said in 2020 about 40% of people in Canada between 18 and 34 owned a home, but it now it’s only around %25 - I might have those numbers wrong.
If that’s the case, homeownership was somewhat attainable for young people when the rates were low.
If that’s the case, homeownership was somewhat attainable for young people when the rates were low.
DougB
Active Member
Except they aren't. Interest rates are rising. The US 10 Year is up about 0.5 percentage points since early Sep:
Central banks can manipulate the front end of the yield curve by setting its overnight rate. Less effectively, they can distort further out the yield curve through buying and selling government bonds and through quantitative easing.
Bonds markets are signaling higher, not lower rates, most likely due to US government debt fears. I wouldn't count on sustainably lower rates until governments around the world reduce their debt loads.
GoVertical
Senior Member
maestro
Senior Member
That's what was inferred by serious issues.
The construction cost per square foot has risen beyond mortgages by traditional lenders for large scale housing. Everyone is talking about the prime rate and housing development but, in my understanding, it's a complete non factor when it comes to a 50 plus million dollar project. That supertall in Toronto in default with over a billion dollars spent is a greater influence. I'm aware of a dozen rental developments across Canada teetering on CMHC approval. It's unaffordable to build despite the pressing need for housing.
Col du Edworthy
Active Member
They are really motoring on this one, great spot to wait on the bike lane each morning to watch.
GoVertical
Senior Member
Lots of activity still..
The Familia
Active Member
The bigger question, what the hell is going on with those two Eau Clare conversion towers in the background. Woooooofffffff…..
CalgaryTiger
Senior Member
I don't mind the one on the right...
Golfing guy
Active Member
What does it matter in the long term what they look like? Empty buildings are now going to be full of new residents that will bring more life, retail and restaurants to the area. So much complaining on this site about what they look like. Not the celebration that we have new life in old structures
O-tac
Active Member
They must plan to paint it white? Right? What design team possibly looked at that spandrel with brown concrete and thought it looked good? I drove by the other day and almost gagged. Was even uglier in person.
zzkwilliamcanada
Active Member
totally agree with you. as long as we make downtown more livable, it is a help.