https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo by Neha Kalarikkal en-us 2021-03-30 01:49:18 UTC 2023-06-03 07:51:15 UTC hello@padlet.com nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366383780 Home buying and mortgages can be overwhelming as it is. Unfortunately, home and mortgage prices become more complicated when you factor in the effects of inflation and economic changes. On a more positive note, understanding the impact of these factors allows one to better predict how prices will shift throughout the years.]]> 2021-03-30 01:55:37 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366383780 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366394719 This CTV News article delves into the state of several housing markets in this 2021 article, including the markets of Toronto, Vancouver, and Calgary.

I chose this article because it does a good job at summarizing the individual details of several housing markets within Canada. It also mentioned and debunked a popular myth which was that the COVID-19 pandemic was going to hurt the Canadian housing market. It instead proves the opposite by detailing the flourishing states of these four Canadian markets.]]> 2021-03-30 02:00:25 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366394719 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366399153 This video contains a quick overview of the impact of inflation on mortgage payments. He discusses the interactions between inflation and income, as well as discusses assumptions that are important to abandon when considering how to best make mortgage payment during inflation.

I chose this video for its brief and comprehensible take on the effects of inflation on mortgage payments and how these effects vary for different individuals. He mentions that wage increases do not always align with inflation. This means that even if you do receive a raise, if it does not match the rate of inflation, you will still be putting the same percentage of your income away towards your mortgage payment. ]]> 2021-03-30 02:02:29 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366399153 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366405664 This video begins looks at inflation in depth before going on to explain the impact of inflation on consumers. The speaker discusses the impact of inflation on home loans and what it means for borrowers.

I chose this video because the speaker gives advice on how to make smart choices with your money during inflation. He speaks specifically about fixed rate debt and how despite the fact that the amount owed for a mortgage stays the same, inflation actually benefits borrowers. This is because the debt they are obligated to pay is now being paid for with devalued dollars and this enables people to actually save because they are not losing as much purchasing power.]]> 2021-03-30 02:05:34 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366405664 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366427512 This BNN Bloomberg article discusses the slow stabilization of the Vancouver housing market. It goes further to discuss how Vancouver went from one of the world's most booming real estate markets to being in a slump, as well as the impact of government policies on housing prices.

I chose this article for its focus on the impact of government policies on housing prices. It paraphrases the International Monetary Fund as saying that often the outcome of policies designed to help consumers by allowing them to borrow more is increased housing prices.]]> 2021-03-30 02:14:39 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366427512 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366521293 This video provides a recent look at the mortgage rates in Canada (as on March 2021). The speaker discusses recent drops in variable rate mortgages and raises in fixed rate mortgages. This video does a great job at illustrating the dynamic nature of mortgage rates

I chose this video because the speaker gives an overview of the rises and falls in variable and fixed mortgages rates in Canada. One interesting thing he mentions is that the rise in fixed rate mortgages is heavily connected to the increase in bond yields.]]> 2021-03-30 02:55:24 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366521293 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366547935 This CityNews Toronto video clip briefly discusses developments in the Canadian housing market post-pandemic. It discusses how despite Canadian mortgage rates being extremely low in the past 12 months, they are beginning to increase. The also reporter mentions that TD Bank and National Bank are two banks that have already risen their mortgage rates. 

I chose this video because the reporter mentions how experts believe that despite the effects of the pandemic and rising mortgage rates, the housing market is not likely to cool. They add that this has caused the Bank of Canada to be concerned over the state of the current housing market.]]> 2021-03-30 03:08:47 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366547935 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366579580 This article from the Montreal Gazette discusses the large growth in Montreal housing prices, as well as a few of the contributing factors for this growth.

I chose this article because it highlights how rapidly housing markets can increase. The article cites a statement from Royal LePage that the Greater Montreal area's aggregate home prices have increased by 6.3 percent in the fourth quarter.]]> 2021-03-30 03:24:32 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366579580 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366582617 This 2019 Toronto Sun article expands on a ReMax report which states that Toronto housing prices are predicted to increase by 6% in 2020. The article attributes this growth to increased demand for detached homes, improved employment rates, and economic growth.

I chose this article because it highlights that simple economic factors such as demand can play a significant role in housing prices. This article states that one source for this increased demand is the high concentration of immigrants in Toronto.]]> 2021-03-30 03:25:48 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366582617 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366585318 Many of the videos I encountered discusses the significant impact of bond yields on mortgage rates. I previously understood the impact of bonds on the economy, but did not know they could affect mortgage rates as much as they do.]]> 2021-03-30 03:27:06 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366585318 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366585650 This topic is relevant to me because I am trying to establish savings for a mortgage some time in the future. Understanding the various economic factors that influence housing market prices and mortgage rates will help me to make the smartest decisions with my finances.]]> 2021-03-30 03:27:14 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366585650 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366586032 The most important piece of information I would pass on to a family member or friend is the complexity of the housing market and mortgage rates. Many people made assumptions about the housing market when the pandemic hit and how it would likely suffer, however, may articles state that housing markets are still hot and thriving. Therefore, I would encourage others to conduct proper research when home buying and mortgage shopping.]]> 2021-03-30 03:27:26 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366586032 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366626355 This graph from Trading Economics shows the rise in Canadian home prices from April 2020 to January 2021. 

This graph does an excellent job at communicating the rapid increase in Canadian home prices that has occurred in just less than one year.

Source: https://tradingeconomics.com/canada/housing-index]]> 2021-03-30 03:49:16 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366626355 nehakalarikkal https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366635838 This graph illustrates the CPI inflation data from 1960 to 2021.

I chose this image as viewing the inflation rates in Canada in relation to the shifts in Canadian housing prices (as can be seen in the previous post) allows us to see that inflation is not the sole dictator of price shifts in the housing market.

Source: https://www.macrotrends.net/countries/CAN/canada/inflation-rate-cpi]]> 2021-03-30 03:55:54 UTC https://padlet.com/nehakalarikkal/w48gezpywdz4qyoo/wish/1366635838