Boost eSignature Legitimacy for Real Estate in Canada

How to eSign a document: eSignature legitimateness for Real Estate in Canada

hello again everyone thank you for tuning in and watching so my clickbait thumbnail of the week is sell now I do say this once in a while when I believe we're at a point in the market where it's good for sellers to sell now I'm not just telling everyone to sell that owns a home certain people that own homes that have an investment property or maybe you're hanging on to that second property maybe it was a a parents house that passed away whatever the case may be if you have a house that's not needed you probably want to think about selling it now because I believe it is a good time I will get to the buyers in a minute or in a few minutes and to let you know what I think uh about buying but anyway let's start with the selling so starting off with the prices prices are declining we are in a declining Market there's no doubt about that if you go back to the last three years to 2021 you know prices uh besides the peak they went up but overall if anyone had a purchased in these last 3 years the best case scenario would be break even at this point and you can see the clear Trend prices are trending down so again sell while you still can before they Trend down even further so now looking at the GTA I just ran the numbers January has still got two days left when I ran the numbers it's one day left as of today but I did this last night around 900 p.m. and you can see they just reached an all new low in January still two days to go but I don't see that popping back up from two days of data and they're down 4.3% from December month over month so again prices are declining we are going to enter into the spring market now so again this is a great chance if you're going to sell sell catch the spring Market I can't say how good or bad it will be but I'm guessing there will be some seasonality in it so again if you're thinking about selling or if you're holding under that property hoping the Market's going to rebound and prices are going to go to the Moon again I don't think it's going to happen again this is advice for people that have that extra house to sell not for people that are just selling and exiting the market I don't recommend selling and exiting the market unless you got in recently and you're in trouble then yeah they maybe you need to do that but if you're going to sell your house and buy another one it's not so important that you do that right now you can capitalize on certain Seasons when you're doing that but again this is for people with that extra house investors and whatnot one more metric I want to look at is the new housing price index in Canada this is as of December 2023 you can see the actual the house prices so the cost to build a house or the House Index not the land has come down from the peak and it looks like it's continuing to Trend down meaning you know the cost of those new H houses are coming down it's not going up it doesn't matter how many people immigrated or landed in Canada prices of new homes have come down from their unreasonable highs the cost of the land it says used with c caution this is from stats Canada of course they can't track land as accurately but I have seen land come down in my area in uh the one subdivision that I can easily track it but again it's hard to track because a lot of times or most times land is sold directly to developers and then developers sell it directly to the builders and they work deals so it's hard to track the true cost of land but I do see it coming down in my area the next reason is due to the rate hiking cycles and how they play out and I've talked about this before here are the major rate hike Cycles in Canada this is the time the elapse time from the first hike to the first cut so in 2022 we had our first hike in March 2022 we haven't seen our first cut yet but historically 41 months in 1978 to 81 28 months the next period 42 months and then 27 months and of course as you know there has been lots of speculation on when these rate cuts are going to happen and it's been priced into certain markets and other economists are also calling for first it was the spring now it's the summer but it is most likely sometime this year by the looks of it and put that would put us right on track with this chart here if it's in the summer that will be another what five months from now so that'll be 27 months so it puts us right on track with these historic cuts and again these are this is not rocket science this is just the economy and the interest rates doing their job three of the last four rate hike Cycles ended with a recession and high unemployment the only one that didn't was the.com bubble and that still ended with higher unemployment but we didn't actually have a technical recession in Canada at that point so it looks like these Cycles if we're on Mark again we're going to see uh these rate Cuts come and a recession happen which of course I'm not talking through my hat here people are calling for recessions economists in the Bank of Canada they know there's going to be an economic downturn so don't be surprised when it happens which brings me to my next chart which is the rate Cuts in what happens with real estate prices so historically real estate prices start dropping or continue to drop depending on the cycle when the cuts start happening this is because we have higher unemployment we have uh weaker economic conditions there's a lot of talk out there and I wanted to bring up one more point on these talks that I that I have and these conversations that I have with people where people say Well when they cut rates even 25 basis points the real estate Market's going to rip again now there's two problems with that theory people kind of offset that difference in house prices so house prices will go higher rates will be cheaper so it'll cost the same right now houses are unaffordable so thinking that the economy can sustain higher house prices with cheaper interest rates to net you the same monthly payment is preposterous in my opinion so of course that's not going to fix affordability which is the major issue with the housing market the next thing is the fix rates fix rates have dropped 1% since October since the bond yields have come down and where are we house prices have been trending sideways and actually dropped in certain areas so that doesn't support the theory we're paying or we're getting mortgages fixed rate mortgages which is a very prominent product with first-time home buyers and families and everyone else and we're not seeing house prices go up yet we were paying 1% less interest for all these new mortgage originations so yeah don't believe that hype when people say oh once interest rates start getting cut the Market's going to take off that is not proven with any data and it's INF factual or it's factually incorrect and here is the unemployment chart of course the interest rates have been doing their job like they're supposed to weaken the economy increased unemployment and here is a chart showing that and of course if you follow the unemployment numbers you know they've been creeping up they're almost up 1% from not even a year ago and the last reason I want to talk about is that happy and high feeling like people are at the winning lots of money and they can never lose well that's been the real estate market for many years now and people still have that feeling when it comes to house prices like it happened before it can happen again I won all this money and I'm going to keep winning and the worst people they say at the are the winners because they keep coming back for more and we've seen that with the real estate market so I guess it's the kind of the common sense that takes over the logical part of the brain that says well it's happened it it defeated the odds the fun fundamentals didn't make sense people couldn't afford homes but it just happened so it can it's going to happen again and it was a great feeling while I'm on that topic I want to go over one article that uh just came out recently this one's from better dwelling but there's many uh all the mainstream media actually covered this article Vancouver laundering model that inflated home price moves to Toronto so of course in 2017 actually even before that a lot of organized crime there were laundering the money in the s bringing their money in getting an exchange for chips and washing it and buying real estate in Vancouver the RCMP you know they got involved but uh they don't know how widespread this was so they just caught somebody it was actually in the nagara Fallsview that was did the same thing and I want to read you just one little piece of a paragraph to explain how it happened a patron previously identified as high-risk sat at a gaming table in the salon pre a high roller gaming area they pulled out $80,000 in bundled cash from a grocery bag and traded it for chips after the cash was counted and confirmed by the staff the patron left with their chips not playing any hands so of course they they've done this in Vancouver and they literally just walked in and the here was charged because no one said anything I don't know how they found out about it it's in the article most likely I'll leave it in the description below but of course why are they doing this well they're laundering the money in Canada they're bringing it from overseas or profits from drugs and they're laundering it and a lot of the time they're buying real estate with it this what happened in Vancouver and of course now they feel that this is happening in Toronto a lot of people talk about laundering money and how our real estate is propped up by laundered money and I don't know how widespread it is but uh it's seems like it's still happening so pretty unbelievable in my opinion so now on to you buyers I know there's a lot of buyers there's always pent-up demand out there so don't buy the pent-up demand story there's always pent-up demand people will always be buying in any Market it depends on how much pent-up demand and if those people can afford problem is now they can't afford even with pent up demand they can't afford to buy I talked to multiple people almost every day uh Sunday I was on three calls in a row on Sunday phone calls in a row for like two and a half hours I was on these calls with people asking the question and of course I put on x i put on my you know stir the pot post of course I like to do this what can I say I'm guilty but this is what I said this weekend I talked three families out of buying a home right now it wasn't hard as they agreed with me they just wanted to hear their words that too many other agents wouldn't say I did talk to one who seemed like it was the right time now I probably should correct IR myself it was probably more like four people and I didn't talk them out of it I just didn't talk them into it so a lot of Agents you'll call up and you'll say look is it is it a right time to buy I'm renting for this much and and you know I really want to get into the market and of course nine times out of 10 from what I hear because I don't call the Realtors but this is the feedback I get they say yeah now's a great time to buy get in for this reason there's always a reason to get in now this post I made stirred some controversy I had people telling me I'm going to get sued for advising people what have they should have got in and prices went up and they're not making all this money and you know it was it was very controversial this post and I got a lot of feedback on it a lot of good feedback too mind you but I wanted to just talk about uh one of the people that called and again I didn't talk them out of it we talked about it and they thanked me and uh we went on from there but I didn't tell them don't buy I just explained we talk through it so usually there's an emotional reaction and they're looking for emotional support almost so the one example from the weekend talking to actually it was somebody close close to me but they saw a house that was for sale it was 599,000 they said what did this sell for because it was on the market for one day I said it sold for 650,000 they said wow that really that's that went way over asking I said well it was listed obviously under asking and we looked at the house and I compared it to a house one of her friends bought last year year and I said you know did you think your house or this house was worth more or less than your friend's house that paid 680,000 last year she said well this house is was is a lot nicer and I said okay so there's my first point so there's a lot nicer of a home right now for 650,000 that you could have bought compared with your friend last year for 680 and that was very clear my second question was what are you paying in rent this person's paying $1,800 per month in rent plus utilities this house was $650 with with a good down payment of1 $130,000 20% down in that case they would have been paying $3,500 per month including the property tax just to carry this house so they're giving up1 to $130,000 and they're doubling their monthly housing costs and then I broke it down further I said okay $2,100 of that monthly payment is going to interest now you're paying more interest per month than you wear just for rent so you have have to give1 to $130,000 cash to double your payment and you're not even getting any of that in your own pocket it's not going into Equity you're paying more in interest so it didn't make sense and she quickly agreed she said you know what you're right yeah you're right I'm going to wait I'm going to wait but they you know they they look at the house and they want to move in I understand people want that house we're we're humans we have that Natural Instinct we want to Nest we want a place to call our own but if you're doubling your rent and you have to s offer to do it it's not worth it and of course prices are not going up they haven't been trending up the market is slowing the economy is slowing sooner or later affordability will return a lot of what I see is the fomo still it's well I maybe I should buy while the prices are low they think they're low they're not low but they're lower than they were so they say like maybe I should buy now because what if prices go up and so the the next conversation I have is what if prices go go down what if you buy this house and prices go down and it's worth $100,000 less next year and that $100,000 is not the bank's $100,000 that's your $100,000 that disappears first and you're paying double from what you were in rent is that good advice to give to the people when I talk them into a sale no it's not good advice so regardless of what's going to go up and what's going to go down if you can eliminate all that from the picture and you say okay forget about price is going up or price is going down what is it going to cost me does it make sense right now to buy that house is my payment going to double well then it doesn't make sense in my opinion unless you're paying really cheap rent you know $1,000 a month but if your payment doubles it's not worth it uh you have to wait until it makes sense till it makes Financial sense in your monthly bills that you can afford to move then it would make sense then you have to assess okay what if prices go up or down well it doesn't matter because I'm going to stay there for 10 years that's fine if you're prepared as long as your agent tells you look the market it's volatile it could go up it could go down I'm not a fortune teller uh there are certain agents certain people that think differently they think it might go up and definitely and other people like John Flynn over there thinks it's going to go down based on his stat stats and data obviously but if you can accept the volatility just like if you're investing with an investor and they tell you they do you know know your client here's uh you know your risk tolerance that's fine but if you're working two jobs to pay for that investment when you can't really afford it it's not a good decision so again what I'm saying is certain people they don't they're not even at that point they don't know they haven't had that conversation and when I say I've talked people out I didn't talk people out I just talked them off the cliff from jumping into something they shouldn't be jumping into so at the end of the day when you're thinking about buying or getting into the market again this doesn't go for people buying and selling that are already in the market you need to upgrade your house but for people getting into the market I have two pieces of advice get your emotions out of it think logically about it don't think about oh I want the house and I want to have my Christmas dinner there and I want to have place to call my own that that's okay to think about but get your emotions get past that point and then run the numbers get a mortgage calculator run the numbers put the property tax in there maintenance does the house need work there's a lot of extra cost with own a house and if those numbers are nowhere near what you can afford or if you're not comfortable with those numbers I wouldn't be getting in I wouldn't be getting in for the next 5 years I don't care how long it takes if it doesn't make sense don't you know give your left arm or your first born to get into a house it's not worth it anyway let me know as always what you think in the comments and until next week I'll see you then