Quote:
Originally Posted by Spoon
Most average or median prices aren't very telling as a stat. I don't even know why people bother posting them and make an argument out of it.
All I look at nowadays is the interest rate. Only way for the housing market to begin correcting itself is when rates go up and people recognize that they can no longer afford their mortgages once the cheap money's gone.
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Actually, they are once you filter it down to attached vs detached on year over year results and parse that with inventory stats. Interest rates haven't moved up, yet the correction has already begun in the GVRD, GTA and now Montreal, where I now live. I would add that I think a certain amount of people have already started to realize they can't afford their home...which is why the massive amount of inventory on the market. It was certainly more difficult to sell my condo last summer than my previous transaction 6-7 years ago.
I think once the rates go up, is when the bottom will actually fall out. Do I believe that Vancouver real estate will ever be "affordable"? I don't think so.