Blanik_SHO
Active member
Or the morons taking on levels of debt and mortgages only sustainable at 2-3% interest rates. I read an article in the globe and mail I believe the other day where a finance teacher also pointed out that the majority of baby boomers are nearing the age where they liquidate their assets for retirement (real estate being a very common acquired asset) which will not only reduce demand (baby boomers shifting from acquiring to selling assets) and simultaneously increasing the offer on the market.
Couple that with an imminent hike in interest rates and tightening mortgage lending practices, we can expect at the very least a correction in house prices. The economist in that article determined that prices are approximately 25% above what they should be. I planned on buying a house in 2 years but I might wait.
I agree that baby boomers will have an impact on the housing market and I hope that it is not severe. Given that many boomers own homes in the burbs, this is the 1st place it will happen. On demographics, boomers have no choice but to sell assets to cover their retirement and this is because governments have done a fantastic job at taking wealth away from their citizens.
As far as the current generation, they will carry mortgages until their retirement whereas previous generations paid off their mortgages by the time they reached 50. What I am looking to pick up is a chalet sometime in the next 5-years because I believe that market will crumble. I tried to convince my wife to buy a small farm a few years ago but she didn't listen...
cela va arrivé seulement si les taux d'interet monte énormément...ce qui arriveras pas d'ici 1 ou 2 ans minimum
d'ici 5 ans si les taux interet monte pas et les baby boomers vende tous......et bien selon moi c'est marché condo risque souffrir
beaucoup demande, et tout les acheteur condo vont vouloir acheter et sa va mettre en meme temps énormément condo et contrairement a ce que une personne a dit plus haut....il y a bien moins exode que il y a 15 ans +....aujour'dhui le tendance commence a renversé (et bien a date c'est rendu 0 dans beaucoup de région....autant départ que nouveau)
selon moi les condo risque de connaitre une stagnation bien avant les maison si les taux reste sous 5% (5 ans)............
si les taux monte a 10-15% là l'histoire change mais selon moi on risque de revenir a 6-7% d'ici 5 ans , comme en 99-2000...