BMO Cuts Interest Rates – “great time to buy”

By
Real Estate Agent with REMAX CREST REALTY WESTSIDE v60121

A great article I found  at the Vancouver Condo Info site argues that it's a great time to buy real estate right now.  The fact is, however, that it's been a great two years to buy in Vancouver in particular and, in the rest of the country, with prices still on the rice despite the attractive interest rate, numbers add up to favor the buyer, not the big brother.

"In the lowest 5-year rate in history, I think moments like this should be documented AND should be indicators of what our economy at large is going through." (Vancouver Condo)

I argue that not only is it a great time to buy now but it has been over the last two years.  Furthermore, contrary to the following quotation of the Canadian Centre for Policy Alternatives, I maintain that it's not possible to have an "imminent" collapse when the demand for Vancouver (and Canada's) real estate is fueled by neighboring countries (China, Japan, the UK, and the US) whose real estate is either out of reach or, as is the case in the US, so devalued that investors are seeking a safer heaven for the money they've left over.

"But some experts are already scratching their heads because of the aggressive tone of the announcement as well as the timing, given the recent spate of warnings about the uncertain state of the market, including one earlier this week from the Canadian Centre for Policy alternatives predicting an imminent collapse."

And why would they care about a drop off in new customers? Ah, here it is later in the article.  Could it be that banks really want to veer away from the media interpreting their interest rate changes and want to stimulate people more directly towards their products?

"The housing market is important to the banks because residential mortgages make up the single biggest asset class on their balance sheets.  There are nearly $1-trillion of home loans outstanding, according to the Bank of Canada, about half of which is held by the chartered banks." (Vancouver Condo, emphasese added)

Given the vast amount of stakes the Banks have with your and my outstanding mortgages, aside from the level of our respective equity, the numbers are astounding and I can imagine the pressure they are feeling.  I am not speaking sympathetically of the banks, but am drawing attention to how much money they must be making even in this seemingly disadvantageous time.

REFERENCES:
The Vancouver Condo Info site.

 

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JARK KRYSINSKI, REALTOR
®, BA.Hon, ABR, IRES, 100% CLUB, IMSD®, LLB
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RE/MAX Crest Realty Westside, 1428 W. 7th Ave, Vancouver, B.C., V6H 1C1
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Rainmaker
155,848
Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

Jark, that is just an incredible home mortgage rate.  I would think that folks should be jumping off the fence and into the back seat of your car.  Better fill up the tank.

Sep 03, 2010 04:17 AM #1
Rainer
239,935
Michele Miller ~ REALTOR®, LMC, HSE, CHS
Keller Williams Greater Worcester - Worcester, MA
"Your Full Service Professionals"

Jark,

It's like that here too and I wish more buyers would get out there and buy!

Sep 03, 2010 05:23 AM #2
Rainer
180,090
Jark Krysinski
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Carolyn, thanks for your message!  Appreciate it.  It is indeed a great mortgage rate and we're lucky to be the first few people online talking about it.  Over the next week everyone will be reading all these articles about this change and we'll be in the limelight for having put it to our clients and community and colleagues.  As Buffini says "top of the morning to ya and the rest of the day to me!"  Have a great day.

PS. In this business of so many delicate and trust-depending relationships it's pivotal to keep people within the 'family'.  I look forward to staying in touch and exchanging referrals to exceed our clients expectations.  Would you be interested in becoming part of my referral database and vice versa?

Dependably, 

Jark

Sep 03, 2010 06:32 AM #3
Rainer
180,090
Jark Krysinski
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Michelle, thanks for your comment!  I value where we're coming from.  I think we'll witness some unique shopping this fall.  There's a tremendous amount of dis-information out there and a lot of great information for buyers to interpret and sift through.  There are, because of this, some great rewards to be had and I think people will follow the fundamentals and realize that Real Estate is indeed a panacea in the long run, despite what the media puts out.

PS. In this business of so many delicate and trust-depending relationships it's pivotal to keep people within the 'family'.  I look forward to staying in touch and exchanging referrals to exceed our clients expectations.  Would you be interested in becoming part of my referral database and vice versa?

Dependably, 

Jark.

Sep 03, 2010 06:35 AM #4
Rainmaker
996,908
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Jark:  One of my favorite Buffini "lines" is in his Turning Point Retreats where he jokes about the "I Love Referrals" sticker some folks use.  He says... "I love potatoes... but nobody has ever walked up to me and given me one."

Not only is that a great line, but it is SO true... that referrals don't just "happen"... you've got to work for them.

Sep 04, 2010 10:57 AM #6
Rainer
180,090
Jark Krysinski
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Karen, thanks for your post.  I like Buffini and he's got plenty of great methods to learn, I actually did his 100 days to greatness which was one of the best things I've ever done at the start of my Real Estate Career.  Nothing comes of nothing, I agree - referrals comes after systematic over-achieving, good work, repeat giving, and a little bit of asking for it.  Let's keep on keeping on!

PS. In this business of so many delicate and trust-depending relationships it's pivotal to keep people within the 'family'.  I look forward to staying in touch and exchanging referrals to exceed our clients expectations.  Would you be interested in becoming part of my referral database and vice versa?

Jark

Sep 04, 2010 07:36 PM #7
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Jark Krysinski

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