Comments on: Ya think?

By: Dave

Dave — Mon, 02 Mar 2009 06:55:48 +0000

someone earlier mentioned that the DOW and TSX have hit lows not seen since 1997- which is correct. That same person suggested that real estate prices will follow. Therefore, prices of real estate will be at 1997 levels.

Can someone please confirm this? Does anyone have any info. linking stock price levels with real estate price levels?

This would be very interesting, however, I’ve never heard something like this before.

thanks in advance

By: David Bakody

David Bakody — Sat, 28 Feb 2009 18:44:17 +0000

For all those who want to know all about gold. This extensive article appears to support what Garth said in nut shell …. ( Gold was/is good … but!)

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/

By: CAPOFALBERTA

CAPOFALBERTA — Fri, 27 Feb 2009 03:33:35 +0000

Wait two weeks, and go in lower. Wait two weeks and repeat. —-GARTH—maybe my problem is I go to low right off the get go and I dont budge. LOL

A realtor friend in VICTORIA expects the market to drop upto 35% and was questiong why I was looking right now

Does anybody in the know epext intrest rates to rise

By: KenDaBanker

KenDaBanker — Fri, 27 Feb 2009 03:24:21 +0000

Garth – am a fan of your posts.
Waiting for the housing market to fall a bit before I decide to invest in my home – I presently rent. I work in a bank and I have been talking around with bankers. I happen to understand the following:
Mortgage companies/banks are discounting the peak prices by 20% and then assume min 10% downpayment before giving out the rest as mortgage loan.
Example: For a house with peak price of $400,000 in mid-2008, banks will assume the price to fall by 20% to $320K and then downpayment 10%. Hence mortgage loan will only be $288K – in other words only 72% of peak prices. You ppl do the maths for the other prices. Banks/mortgages are very conservative now. Credit history is important but 95% financing is becoming a mirage in the desert.

for buyers to get mortgages, be prepared to make a huge down unless the prices are decreased. But sellers are not decreasing – some have decrease by 10% but most are stubborn. Some buyers tried buying even when price is high but then, they don’t get a mortgage.

my view – sellers should reduce their prices to sell and buyers (if any) should bid peak price minus 20% (min).
In the end, buyers will dictate. But when will sellers give in and realise they can’t make huge profits.
Some buyers are buying a HOME.