Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

RE:RE:RE:CNBC article

[Torontojay]

rad10 wrote:

Torontojay wrote:

DZtrader wrote:
Further to my post a few days ago regarding the lagging nature of Owners Equivalent Rent "OER", suggesting why I believe the U.S. inflationary target is for all intents and purposes already there.

https://www.cnbc.com/2024/07/11/heres-why-housing-inflation-is-still-stubbornly-high.html

 

I'll explain in a nutshell why shelter inflation is high. Would be "home buyers" are priced out of the market due to 7% mortgage rates so they turn to rent which pushes rent prices higher. Nobody that owns a home is listing it for sale because there is no reason to exchange a 3-4% mortgage they currently have for a 7% mortgage. There is very little supply of existing homes for sale keeps home prices elevated and in some markets are still increasing. 

 

 

 

In the USA where you can get a 30 year fixed mortgage - that may indeed be the case.

Mortgages in Canada like many preferred shares reset every 5 years.  The cracks in the housing market in Canada are already starting to show!

 

 

Definitely starting to show in Canada. 

Condos in the gta are in an epic crash at the moment. Defaults always rise significantly after the first interest rate cut. Multi family homes in the US are starting to add to the inventory which consequently puts downward pressure on rents and valuations.