Ol Skool wrote:
Fred,
You preface your entire argument by saying as long as interest rates stay low. Well, they are at historical lows and can't stay low forever. The BOC has raised rates a half percent. How about you come back to me when they raise it another 1.5% and then we'll see how much demand there is.
Uh, no need for the bible, or the aggressive reply, since I agree.
I said "Correct... as long as there is demand, and as long as the lending rates remain low, we're not going to see any crazy drops, especially in a market like Milton. "
When interest rates rise, there will definitely be consequences - the question is, at what level.
Keep in mind though, that interest rate are also historically low at 6% too.
I don't have a crystal ball and I don't believe everything is going to keep shooting up, but it's just as silly to believe there's going to be a huge crash anytime soon. Nobody know, and it would be silly so suggest that we do know exactly what is going to happen.
I also suggested that people plan accordingly, and don't overextend themselves... and I never EVER suggest to a client they should buy a bigger house promising higher returns. (Check all my posts blasting the mortgage reps for pushing 35-40yr products with 0-5% down and you'll see my position) No sense arguing with me since we somewhat agree here, just on a slightly different level.