Housing Market by Richard Umrah

Welcome to our wall!

richardumrah2004 — 2024-03-30 15:10:38 UTC

Welcome to our padlet wall, as you can tell by the title we intend to be the main source of information about the housing market. You can expect to learn about the housing market through the websites we have linked, the videos that we post, and the images. A housing market is the supply and demand of houses, and we will be focusing on the market in Canada.

Website #1

richardumrah2004 — 2024-03-30 15:42:29 UTC

This website/article informs us on how the housing market was in 2023 and the predictions for the housing market in 2024. It tells us that in 2023 the housing hit an all time low in home sales. They are predicting that 2024 will be the same way and sales will be low if mortgage rates do not decrease or selling prices are not reduced. Another factor that might slow the market down in 2024 is the expected slow down in construction, which will decrease the supply in homes.

I chose this website/article because this keeps us up to date about our topic and lets us know the predictions for the housing market in 2024. I found it useful because it taught us the factors that are affecting the housing market such as construction, mortgage rates, etc. This is different because it is a forecast of what the market will look like.

Video #1

antoniodasilva15_ — 2024-03-30 15:45:54 UTC

In this video, Mark Deoro, a principal economist with Dejar Deas, discusses the current state of housing affordability in Canada and the potential changes that could make it more accessible. He suggests that affordability will improve in 2023 as the economy slows down and interest rates decrease, but it won't return to pre-pandemic levels. Deoro also mentions that employment and the construction sector will be important factors to watch in 2024. For those preparing to renew their mortgages, he advises being prepared for higher payments and considering ways to mitigate the increase. Overall, the economist emphasizes the importance of personal financial situation when making decisions about buying, renting, or selling a home. Mark DeRose of DeJar Real Estate discusses the real estate market outlook for the year 2024. Mark expresses optimism about the market, suggesting that 2024 could be an excellent time to buy a home in Canada due to several factors. These factors include historically low-interest rates, a stable economy, and a potential increase in inventory, which could lead to more affordable home prices. Mark also mentions the importance of considering individual financial circumstances and long-term goals when deciding to buy a home.

I chose this video because it informs us on when is a good time to buy and act on the housing market. It tells us what to prepare for when it comes to higher payments and ways to mitigate them. It tells you what position you have to be in if you want to buy, rent, or sell. It informs us that 2024 could be a great time to buy a home due to low interest rates, stable economy, and a potential increase in inventory.

Website #2

richardumrah2004 — 2024-03-30 15:54:53 UTC

This website/article provided some insight on how the market has been going so far in 2024. It gives us an idea about how people who expected the housing market to recover this year received the brutal truth in February as housing sales have fallen. Toronto fell 12%, then Vancouver fell 23% from the average it has upheld for the last 10 years.

I chose this article because it gives us a look at the housing market all around Canada. It taught us that this problem is not just in Toronto/Ontario but in a lot of the other territories.

Website #3

richardumrah2004 — 2024-03-30 16:10:59 UTC

This article/website gives details about what experts think about the housing market. We dived into what economists, the banks and the real estate industry thinks of the housing market. It also tells us if it is a good time to buy a house, and how there might be pressure on first time buyers as prices might be going up as the year goes on. It also gives us insight on when you are ready to buy a house with 7 signs that you are prepared to buy a home.

I chose this article because it includes the opinions of many experts in the real estate field. It also helped us as we are young adults that will want to purchase homes in the next few years and it gave us some signs and scenarios that will be helpful to know when even thinking about buying a house.

Video #2

antoniodasilva15_ — 2024-03-30 16:12:57 UTC

In this video, it discusses the current housing market slowdown in Canada and the anticipated impact of expected interest rate cuts. The market is experiencing a decrease in price growth, and most analysts predict the first interest rate cut from the Bank of Canada in the spring or summer, which may stimulate more activity. The popularity of fixed-mortgage rates is expected to increase, with many people purchasing homes with 4-5% 5-year fixed mortgage rates by the end of 2024. However, those renewing at much higher rates will face significant sticker shock, leading to belt-tightening and reduced spending. Economists believe housing affordability issues will arise due to the global economy's reduced spending and the possibility of a short, shallow recession. An Ipsos poll reveals record frustration over home ownership, with over 70% of renters having given up on ever owning a home, leading to potential political backlash.

I chose this video because it explains what the Canadian housing market is like in 2024 and what to expect. There is a decrease in price growth and the first interest rate cut will be in the spring or summer. Fixed mortgage rates are expected to increase by the end of 2024. Housing affordability will rise due to the global economy reduced spending and shallow recession.

Video #3

antoniodasilva15_ — 2024-03-30 16:13:53 UTC

The video discusses the development of a neighborhood and the negative impact of investor speculation on housing density and parking. It proposes that a crash in the housing market is needed to address the issue. The high percentage of homes sold to investors and speculators reflects the speculative nature of the housing market and the lack of focus on creating affordable housing for residents. This video emphasizes the need for a crash in the housing market to discourage speculative investment and drive a change in investor sentiment towards sustainable and affordable housing. The negotiation between the developer and the city regarding density zoning reveals the influence of developers in shaping urban planning decisions, potentially at the expense of residents’ needs. The lack of parking spaces between homes on 27-foot lots highlights the practical issues and inconvenience faced by residents, indicating a lack of consideration for livability in the development process. The video raises questions about the sustainability and long-term impact of building homes primarily for investors and speculators, rather than focusing on creating stable and affordable housing options for residents.

I chose this video because it opens the eyes of people that are not aware of the housing market and why we need a housing market crash. Homes that are sold to investors are what makes housing so unaffordable for residents. Residents also face a lot of inconveniences due to the lack of parking spaces between homes. This video is very useful and shows how hard it is for residents to live alongside paying a lot of money every month on rent.

Video #4

antoniodasilva15_ — 2024-03-30 16:14:31 UTC

The video discusses the potential trouble brewing in the Canadian real estate market and the lack of awareness among homeowners. It highlights the possibility of a housing market crash in 2025-2026, increased mortgage rates, and the potential impact on homeowners. This video also emphasizes the importance of being prepared and making informed decisions. The video highlights the potential trouble in the Canadian real estate market, indicating that there are concerns and issues on the horizon. The discussion of increased mortgage rates and higher payments highlights the potential financial strain on homeowners and the importance of understanding the impact on their finances. The video also mentions the limited ability to sell and make a profit due to affordability issues, indicating the potential challenges for homeowners in the current market. The possibility of negative equity is mentioned, indicating the potential risk for homeowners who may have to sell at a loss. The importance of staying power and being prepared for high interest rates is emphasized, suggesting the need for long-term planning and financial stability in the real estate market.

I chose this video because it informs people of the trouble brewing in the market and the possible upcoming market crash. It also tells you how you have to be prepared and make smart financial decisions. It talks about how mortgage rates will increase and how homeowners will potentially have to sell at a loss. You need to be financially prepared and stable for the upcoming high interest rates.

Website #4

richardumrah2004 — 2024-03-30 16:28:11 UTC

This website/article talks about the rising home prices, the large interest rates on mortgages, and the rising rental costs. It responds to the people that are fighting for the banks to cut the interest rates to make homes more affordable. The banks are stating that it is not a problem of interest rates but it is a problem with the supply of homes in Canada. The banks believe that when more homes are built and the supply increases, the housing market will grow and the affordability of houses will increase. This will lead to more people being able to buy houses with less competition, which leads to cheaper selling prices.

We chose this article because it gives another perspective on why the housing market is the way it is, hitting all time lows as of recent. We learned that this might be a supply and demand problem rather just a monetary policy problem, as the competition in the housing market will decrease if supply goes up.

Image #1

richardumrah2004 — 2024-03-30 16:57:35 UTC

This image/graphic expresses the continuous rise in house prices that is currently going on in Ontario at the moment. We see the average home price is above the average of the past years which is currently decreasing the amount of home sales in the housing market.

Image #2

richardumrah2004 — 2024-03-30 17:00:29 UTC

This image/graphic expresses the increase in people selling their homes in Ontario and Canada in general. More people see the housing prices going up and think that they should cash out and sell their home for a price way higher than they bought it at, so more people are selling their houses at the moment.

What did you learn about your topic that surprised you the most?

richardumrah2004 — 2024-03-30 17:15:44 UTC

The thing that surprised us the most about the housing market, is the fact that the sales of homes have been down. Not only that sales are down in Ontario but also in many other provinces. It is surprising that this is a nation wide issue that seems to affect all Canadians. And it does not look like it is getting better in the near future.

Provide a real-life example of how this topic is relevant or interesting for you.

richardumrah2004 — 2024-03-30 17:20:24 UTC

This topic is relevant and interesting to us as we are young adults in the 19-21 age range, so looking for a house is an objective for the near future. So learning about the housing market especially in Ontario is important, because knowing the trends, rates, forecasting, and expert analysis is very helpful when entering the housing market as a first time buyer.

If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

richardumrah2004 — 2024-03-30 17:36:54 UTC

If we could pass on any of our newly learned knowledge of the housing market, it would be to understand and keep up with market trends. Staying updated on things such as interest rates, supply and demand, economy factors, and government policies that affect the housing market. This will help making decisions and predictions within the housing market.