Economist on real estate: Sellers need to reset expectations

BMO economist Robert Kavcic says that sellers need to 'reset their expectations' and be prepared to accept lower prices as demand plummets.

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[kevinn]

This market isn't even close to being a correction. We haven't even gotten back to 2020 prices, which were already wildly overvalued. Interest rates are still moving up toward 4 - 4.25% BOC rate. And on the longer term chart, the trend line is down near 2017/18 prices. And volume support is down in this zone. This is what Robert is talking about when he refers to price discovery. Seeking support levels. There's no support anywhere up here.

Unfortunately the gov't pumped the market back in 2008/9 and didn't let prices correct. This has lead to an incredibly unhealthy market.

Sellers are not even registering that prices have a long way to drop to be attractive in any way.

[nicholassmatavicius]

Fingers crossed that we have our own '08. Let it crash and burn and leave those who caused the problem by over bidding on homes to live with the consequences.

[ztracks]

Housing is a long term investment. If you don't need to sell right away it's best to wait things out. Don't panic sell.

[BONZITORONTO]

The Canadian Real Estate market stinks like a rotten tomato 🍅

[jimmybaggs]

The speculators deserve to lose their shirts. I’m amused by the homes hitting the market with unfinished renovations that were only purchased last year.

[EdwardCheung]

Owners can dry up supply by not putting their house on the market. If owners can continue to afford their mortgage (ie: no mass scale lay offs across industries in Canada), dry up supply by not listing homes on the market, we can still continue to see high transaction prices. Those who can’t afford house in their current city, will continue to not be able to afford anything. Tough luck. Only option is a more affordable jurisdiction.

[RC-fhlk]

It will be a different story one year from now….just keep your house for a year or two!

[Meyers]

POP THAT HOUSING BUBBLE. HOW LOW CAN IT GO?!

[danielhicks]

Immigration levels need to be tied to housing availability!

[Alvar-hdtz]

I hope the real state bubble will burst soon.

[ChadzFilmz]

Who is buying lol the market is going to drop 40% to 50% percent... let the sellers dream

[rukkyzaks]

the honest truth is you should hold on to your house and not sell it right now. With lack of supply build-up, immigration numbers and rent prices going up, just wait it out for inflation to cool and the prices will start to boom back up. It'll be like someone turned the switch again.

[MR-eopp]

The market is just experiencing initial fatigue, headache, and irritability.

Chills, Shivering, Shakiness, Sleeping difficulties, Sweating, Tremors, Vomiting are on the way. Oh yeah.

[anitascheyk]

Holy, it looks like army barracks. Not worth any money!

[AliceEclipse]

Sellers should not be worried, they already have their investments, and they not gonna sell at the loss regardless. It’s the buyers, who should be worried with sky high interests rates.

[samimsamimi]

Note the point many years with prove u been hacked fully discovery every day were showing

[giuliomoroni]

How the prices of the houses can go down, if the prices of the material to build is skyrocketing. Please senior economist explain!!!

[samimsamimi]

Scwelers scheweled schewleses bat last virues

[starting]

Biggest problem is we can't help immigrants can't live in a tent at -40

[samimsamimi]

Now vandaizal John Cena rock one side put old matrix too mix them together bring avengers ready for show ??? High voltage generals