Monday was not as strong for listings as I would have expected. There were 181 new ones, and 154 sales, for a sell/list of 85.08%.
Inventory was 11,239, while over 90s were 2,465, or 21.93%.
August 21, 2007...4:26 pm
Monday’s Numbers
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9 Comments
August 21, 2007 at 4:58 pm
Rob – do you think that the rise in credit spreads (ie. non-gov’t debt rising in yield, vs. gov’t) will see mortgage rates higher in the months ahead?
that north van listing seems cheap, in comparison to comparables? perhaps its the busy street?
August 21, 2007 at 5:25 pm
WoW:
Semi-busy street. Get on a quiet street around there and we’re adding $75,000, probably.
I see rates coming down. Last I heard, inflation was tamed. I know, two weeks ago it was a danger. I get that. But the recent stock market volatility scared a lot of people, I think (not the stock buyers, apparently).
August 21, 2007 at 6:12 pm
“The Bank of Canada’s core index advanced 2.3% in July after posting a 2.5% increase in June. This index is used by the Bank of Canada to monitor the inflation control target.”
Inflation target is 2.0% or less. Just because one month showed a slight easing of .2% is hardly grounds for the BOC to lower interest rates. They will hold Sept 5.
The Fed is concerned about lowering interest rates thinking it will stir up inflation again.
Unless chaos breaks out again, Countrywide goes under, subprime foreclosures increase, stock market really tanks, credit tightens, etc. those interest rate decreases maybe very slow to materialize.
August 21, 2007 at 10:51 pm
Coco:
I guess what I’m saying is that last month’s boogey man was inflation. Get a hiccup in the equity market and suddenly you hear on the radio that inflation has been tamed.
Will we need as much mayhem as you say before we get rate decreases? I don’t think so. I think the CBs will flinch long before that.
August 22, 2007 at 7:18 am
Rob,
CB’s don’t want to give the impression that they cave into wall street and lower interest rates because we had one market correction either, otherwise it looks like they work for wall street. Wait and see, it’s a fine balancing act.
August 22, 2007 at 7:40 am
When interest rates were low everyone was spending into the future. A lot of people are caring a lot of debt and have no savings. If the U.S. lowers interest rates, it will take awhile for those lower interest rates to work their way through the system.
Will it help? Maybe we are headed for a consumer spending slow down because a lot of consumers are just too financially tapped out to continue spending at the level they have been.
August 22, 2007 at 9:47 am
coco:
Its funny you say that. I don’t disagree, but I might have a little less faith in them than you. Wé’re going to find out. Andrew Coyne commented on the same thing this mornign in the Post, indicating that the discount rate move was sufficient, but that “real” bad investments (sub-prime mortgages and poorly evaluated stock market plays) should be allowed to bleed.
You’re right that they have a fine line to walk. On the one hand you could say they’ve done a good job so far. On the other you could say that the Ark was built by amatuers and the Titanic was built by experts…
We’re going to see.
August 22, 2007 at 9:52 am
P.S.
I didn’t read the post this morning, just my own thoughts.
August 22, 2007 at 12:36 pm
Coco:
I didn’t mean you copied Coyne. I meant great minds think alike. Let’s face it: speculation on the actions of central banks are on a lot of people’s minds these days.