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

CNBC article

[DZtrader]

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

[Torontojay]

  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

[rad10]

  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!  

[Torontojay]

  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. 

[rad10]

  Dang TJ - the ability to suck and blow simultaneously is remarkable. From "nobody that owns a home is listing it for sale" to "Epic crash and defaults.... starting to add to inventory" There is a large inventory buildup in Toronto. https://www.blogto.com/real-estate-toronto/2024/07/more-homes-for-sale-toronto-market-years/  it's happening - a real

[Torontojay]

Hey Rad, maybe you need to read carefully before responding. The Toronto market is surging in inventory which is in stark contrast to the US market which up until now was completely frozen.  Inventory is starting to build in places like Texas and Florida but that was not the case last year or the year before it.    Cash out refinancing is also on the rise for those maxed out on