2023 could be an ugly year for homeowners caught between higher rates, falling p

[Ronald]

2023 could be an ugly year for homeowners caught between higher rates, falling prices

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Mortgage brokers say 2023 could be an ugly year for some homeowners, who have become mired in the monetary vice grip of rapidly rising interest rates and continually falling home prices.

It follows years of frenetic activity in a red-hot real estate market that saw the price of an average London home peak in February 2022 at $810,000. Prices have fallen every month since to rest at $612,770 last month, a December that saw only 299 sales, the lowest number recorded for the month in a decade.

https://www.cbc.ca/news/canada/london/home-mortgage-london-ontario-1.6709047

I thank god I am not in this mess. How do people afford these homes. I see homes fit for a king, yet maybe two people live in the place.

[camper6]

It's surprising how much income some people have.  In my city it's what is called old money passed down from generation to generation.  Back in the good old days everyone had a job and a good pension plan.  It's different now.   

[Ronald]

It's surprising how much income some people have.  In my city it's what is called old money passed down from generation to generation.  Back in the good old days everyone had a job and a good pension plan.  It's different now.   

Yesterday's and today's generations are interested in money and the more the better. Pensions are the last thing on there minds.

[Dave]

It's no different here in the UK. The younger generations are really struggling to buy property and the prices are so high.

When I was young the ratio between wages and a mortgage was good and we could borrow up to 2.5 times our annual income, but now that's not possible with average wages here at around £30,000 pa the average price of a 2 up 2 down is around £150,000.

My first house cost me £13.750 I sold it 4 years later for £25,000

[camper6]

Yes when you sell it seems like a profit.  But you have to spend all the money on a new home not just half.  However here in Canada.  I live in Thunder Bay Ontario. A married niece living in Toronto.  Sold there house in Toronto for $600,000.  Moved here and bought a bigger nicer home for $400,000.  So it depends on the demand.  Jobs are easy to get and the pay is higher in Toronto. There are also retirement homes selling in places that were former mining towns like Elliot Lake.  They are affordable.I live in an apartment now with public transit close by.  Winter is brutal but in the summer I walk a lot and ride a bike. Staying in shape is the best move anyone getting older can make.  You can stay independent. I will be 90 in April.   I'm having fun with the listing program.  I found the filter method to list out the contents of a flash drive for just videos and images.  Worked out great and thanks again for the help on that program.

[Dave]

I found the filter method to list out the contents of a flash drive for just videos and images.  Worked out great and thanks again for the help on that program.

It was my pleasure Camper, if you need anything else no hesitate to ask