Real Estate

August report released

  • Last Updated:
  • Sep 4th, 2020 1:00 pm
Tags:
Deal Addict
Sep 14, 2010
1155 posts
295 upvotes
Toronto
“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation,

Really?
Deal Addict
Dec 20, 2018
3929 posts
3128 upvotes
GurungBoi wrote: “Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation,

Really?
yes.. i mean clearly jobs and gdp are growing significantly from the march/april time period

have you not been paying attention? eg June GDP is up ~6.5% and few hundred thousand jobs created. .. July 419k jobs created and GDP up ~3.x %

so if march/april was the low point in demand for homes due to job loss and gdp drop.. the strong gains in May , June, July and likely august will result in the pickup in demand
Deal Guru
Feb 29, 2008
12594 posts
7827 upvotes
So what happens when all the people who overpaid for houses outside of the core are called back to work?

By the way, while my company is not hiring, several friends have told me their companies are booming. All tech. Jobs are coming back. Just don't expect them in the hard hit sectors. IT didn't miss a beat. You bet your arse people are going to be back in the office. Maybe it's staggered. Maybe rotations, but they will be in the office.
Deal Expert
User avatar
Apr 21, 2004
54079 posts
18994 upvotes
It's all about the interest rates as it affects almost everyone borrowing to gain financial leverage. Probably won't be painful until we get to the 7% mark. It would be harder to bid up prices, harder to qualify, harder everything leading to less demand. Not sure when rates will be that high again.

We have come to realize during the pandemic that for middle class households with at least two income earners, it's likely the cash inflow is enough to service the mortgage and basic necessities if all but one income earner gets laid off but receive a reasonable severance package.
Deal Addict
Jul 3, 2007
2729 posts
2865 upvotes
Toronto
JayLove06 wrote: So what happens when all the people who overpaid for houses outside of the core are called back to work?

By the way, while my company is not hiring, several friends have told me their companies are booming. All tech. Jobs are coming back. Just don't expect them in the hard hit sectors. IT didn't miss a beat. You bet your arse people are going to be back in the office. Maybe it's staggered. Maybe rotations, but they will be in the office.
Scotia cut IT contractor pay by 30% - 40% recently and so will other banks.....I have several friends in big corps telling me the same,
the cuts are coming next year .... I think its gonna be a really slow climb back and it will take years...

Deal Guru
Feb 29, 2008
12594 posts
7827 upvotes
joepipe wrote: Scotia cut IT contractor pay by 30% - 40% recently and so will other banks.....I have several friends in big corps telling me the same,
the cuts are coming next year .... I think its gonna be a really slow climb back and it will take years...

Lol at banks. Thry don’t register. They add and cut whether there’s a oandemic or not. Thry will be cutting a lot of the fat in 2021. But lean software companies are adding bodies as the pandemic has created a lot of opportunities for resourceful and innovative companies. You’ll see.
Deal Addict
Dec 4, 2016
1856 posts
882 upvotes
joepipe wrote: Scotia cut IT contractor pay by 30% - 40% recently and so will other banks.....I have several friends in big corps telling me the same,
the cuts are coming next year .... I think its gonna be a really slow climb back and it will take years...

I guess we will see what kind of talent they get with 30-40% rate cut. Is there currently a huge glut of IT professionals who specialize in banks? Or do they expect unemployed petroleum engineers to learn SysAdmin in three months?
Deal Addict
User avatar
Jul 8, 2010
1382 posts
1074 upvotes
Ontario
mazerbeaner wrote: Real estate is seasonal, I don't understand why we have to have this conversation every year for decades. Are we back to MoM comparisons now because YoY is too high? Many people don't shop in summer with their kids home, spending time at the cottage etc. kids are going back to school in September and the fall market is coming up.
Guess all that pent-up demand due to Covid was only for one month....
Deal Addict
User avatar
Jul 8, 2010
1382 posts
1074 upvotes
Ontario
mazerbeaner wrote: People are already starting to get called back to offices. Corporations are smart too, they will phase people back in without even telling them. They will say oh it's just 1-2 days a week because we need certain things done in person. Then the demand for those things will rise and before you know it it's back to square 1. They aren't going to let their billions of assets in office space go to waste.
Smart companies already offloaded all RE in downtown in past few years... All those goverment and FIRE companies, they don't own the buldings, just rent. Way easier to get out of rent than offload an asset like that.
Deal Addict
User avatar
Jul 8, 2010
1382 posts
1074 upvotes
Ontario
BlueSolstice wrote: I guess we will see what kind of talent they get with 30-40% rate cut. Is there currently a huge glut of IT professionals who specialize in banks? Or do they expect unemployed petroleum engineers to learn SysAdmin in three months?
Here you go, just one page back. If you work in domain, you will not be surprised by this. They do it because they can.
light2 wrote: Simple equation of supply, demand, and low interest rates.

Wait till immigration doors re-open.
Deal Addict
Dec 4, 2016
1856 posts
882 upvotes
Isostar wrote: Here you go, just one page back. If you work in domain, you will not be surprised by this. They do it because they can.
Did Trudeau suddenly create a massive supply of IT talent specializing in first world banking support? As far as I know, the fast track system for tech talent has been in place since Trudeau was elected, so whatever market saturation should have happened 5 year ago. As an investor in TSX index, I want to hold bank CEOs accountable for waiting 4+ years to cut IT pay, if market has been flooded such a long time ago.

Think about the amount of shareholder values destroyed for all these years of overpaying for IT talent by 40%.

Personally, I think the big banks will have to raise IT contractor rates again when the cheap talent doesn't deliver the level of services expected.
Deal Fanatic
Feb 22, 2011
7301 posts
7787 upvotes
Toronto
Isostar wrote: Guess all that pent-up demand due to Covid was only for one month....
Sales were up 40%... so no... do you even think before you post?
Deal Addict
User avatar
Jul 8, 2010
1382 posts
1074 upvotes
Ontario
mazerbeaner wrote: Sales were up 40%... so no... do you even think before you post?
So where is that seasonality you talk about? Don't you think this year is an exception? Or that happens only when suffice your narrative?
Deal Fanatic
Feb 22, 2011
7301 posts
7787 upvotes
Toronto
Isostar wrote: So where is that seasonality you talk about? Don't you think this year is an exception? Or that happens only when suffice your narrative?
Life must be hard not being able to realize things without having them spelled out for you. There can still be seasonality within a year that is higher than the previous year, the curve is just lifted.

Top