Yeah- right! >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Had an interesting Conversation with a Westside Real Estate agent at an open house today. It was near the end and he was in a chatty mood. His listing was priced rather high I thought and told him so. He admitted it was priced for the "mainland" buyer.
I always thought Vancouver was on the mainland but obviously it means something else. His open house visitors were 50:50 'Mainland ' and Local.
Said, even though the listing was a few months old, no anxiety from the sellers (who obviously did not live in the place) to sell. "Interest rates are key. While rates are so low, the opportunity cost of not selling is low . Carrying costs are low and if you do sell you will only get 1% in a GIC on the money you make . So no one is too rushed.
If rates move up to the normal 4-5%. Then things will change very quickly."
Don't hold your breath waiting for Carney to go there. His idea of raising rates to temper this speculative mess, is a 0.25% rise.
Finally he said, "it isn't really prices that have risen so much, it is money that has become worthless."
I guess that depends who you are. If you have a high income in Vancouver and can access low rates or can get your hands on HAM then times are very good. If you are a Greek or Spanish or even a US worker, then money is getting more scarce.