New mortgage originations fell over 23% month-over-month and a stunning 47% year-to-date according to Black Knight (formerly LPS). As they show in their detailed presentation, with a 65% year-over-year drop, new mortgage originations are at their lowest since their records began…
I’ve been thinking about this for a few years. I put money down on my first house when I was 24. My son is 25 and at least 10 years away from even thinking abour home ownership. There are few prospects for young people here in Ontario, and real estate is going to crash with no new generation buying. Thanks Dalton.
This is what happens when you kowtow to unions, which drives the cost of labour higher AND pursue a socialist agenda tinged green, which drove away the businesses and factories. Congratulations liberals/leftists you’ve achieved your definition of Utopia. Give it a few more years and Ontario will just be a larger version of Newfoundland without the ocean views.
2007,
Its a great way to go, said the mortgage lender.
$200,000 dollar adjustable rate mortgage on a $180,000 dollar bubble inflated house.
Then we give you a $75,000 dollar equity loan so you can buy a swimming pool and 2 new cars.
The adjustable rate will only go up in 7 years, and will only be adjusted 12 percent,
by then you will have flipped the house and moved….
– true,
The smart lenders bought an RV instead of cars,
because they are now living in them…….
Given how in some parts of the US the housing bubble has stuck around like some sort of zombie, this is probably good news.
Well i guess i am a rare case because i am 35, and i have 3 years left on my original $338,000 dollar mortgage. I bought my first home(appartment condo)in 2003 for 99,000 during the boom it shot up to 237,000….i sold it upgraded to a bigger home (half duplex) put $84,000 down and have been pluggin away ever since i over pay my mortgage when ever i can.
It will be nice to be mortgage free before 40. Granted my duplex is a little small,it will be nice to be able to save the money add it to the sale of my house and move to an acreage or a double lot somewhere and pay cash.
Anyway i don’t think this pace will keep up with the rate of death of the boomers about to hit,and the rate of abortions,and the fact that people seem to be ok with having 1 or 2 kids i mean it cannot be sustained and preserve our way of life and our culture.
Our culture is being watered down through massive immigration and it just can’t keep going. Canada is a fork in the road.
Funny how the last graphic – the map of the US showing the number of days past due – roughly corresponds to areas of liberalism, highest in the north-east and Califonia and Florida, and lowest in the heartland.
Well, now that things have tightened up in the USA, its a lot harder to get a mortgage for your pet dog or parakeet the way you used to back in 2006. These days they won’t give you a house loan unless you have an income that can actually support it. How unfair!
Turns out there’s a lot less people out there who can cover a $300-$400k house loan than was previously thought.
Thanks, liberals!
Next housing price crash in 3, 2, 1…
The article is a bit misleading in that few home purchases are financed these days. Hence the collapse in mortgage originations.
Mortgage fulfillments are even lower. More than half of all financed real estate deals fail at the closing table.
The majority of home sales are cash, but what deals you can get.
A cash offer of about 60% of the value, will usually be accepted.
Another factor could also be today’s throw away relationships and lack of commitment. Considering half of all school children are from single parents, the erosion of stable relationships has a major impact on whether to buy or rent. If the housing market is slipping with the almost zero interest rates on mortgages then the long term prognosis is not very cheerful. Too many McJobs. No job stability and fear for the economic future are also factors. Cheaper in the suburbs has been nullified by the price of commuting with gas at $3.50 gal. and ever increasing utility and user fees. The dream for most has always been a nice house with a white (racist bastard) picket fence, but the more unstable the future looks, the more logical it seems to rent.
“Give it a few more years and Ontario will just be a larger version of Newfoundland without the ocean views.”
You only wish it will be like Newfieland,favill. It’s now a “have” province. Owemorontario is now light years from that status again,if ever.Oh well. Think of all the fun hippie,idle-no-more,etc. beatings that will happen when the center of the universe’s population triples with all them homeless,useless idjits heading back to hive central……er….City of Pixie Dust & Unicorn Farts.
NL is in the process of blowing a lot of the oil wealth on a hopelessly uneconomic hydro project. Provincial debt levels are already huge and the number of govt employees far exceeds the need. And the age demographics going forward are nightmarish.
Have status is being squandered.
lessons in all this for Alberta
Redford toast, rest o the PC’s next.
I remember hearing Ernest Manning on the radio, Back to the Bible Hour, while premier. yipes!
The world has changed since then.