The housing inventory in Maple Ridge is the lowest it’s been in 25 years

The housing inventory in Maple Ridge is the lowest it’s been in 25 years

Letters: ‘Perfect storm is brewing’

These new rules are but one factor that will impact the housing market in the coming year.

Editor, The News:

Re: New rules to heat up housing market (The News, Dec. 18).

I was pleased to read your article about the new mortgage down payment rules. These new rules are but one factor that will impact the housing market in the coming year, and it’s important for consumers to be informed.

I was dismayed, however, to find that your article only covered part of the story, the realtors’ side. Although the housing market may be temporarily buoyed by the rush to buy homes before the new rules take effect, the ultimate effect is likely to fuel a correction in the market in the coming year and beyond.

What your article didn’t mention, but was just as significant, if not more significant, as the new down payment rules, is that the U.S. federal reserve recently hiked interest rates for the first time in nearly a decade. The Bank Of Canada rates follow the fed’s rates 90 per cent of the time.

But even if  the Bank of Canada lowers rates, even goes to negative rates (as some interpret the minister’s remarks), the fed’s hike (the first of many over the next two years) will impact Canadian bond rates, which drive mortgage rates.

The simple fact is, Canadians, including folks in Maple Ridge, will be paying higher mortgage rates in the coming year. For folks with existing mortgages that will reset in the next two years, they could be in for quite a shock: someone with a current mortgage at 2.5 per cent could be looking at a reset to 5.0 per cent in 2017. Add in the likelihood of Canada falling into a recession due to the collapse of oil prices, growing unemployment, and 2016 looks like a perfect storm for the housing bubble to pop.

You published a column a few months ago, warning that the market is overheated, and Canadians are holding record debt. I know the paper gets significant advertising revenue from the real estate and mortgage industry, but it would be a disservice to your readers to only present the realtors’ side of this important story.

There is plenty of evidence to support the growing risk that recent and current home buyers run of falling under water, where their homes will be worth less than their mortgages with just a 10-15 per cent correction in the market.

Bryan Barrow

Maple Ridge


Just Posted

Students at James Cameron school contributed their original stories and illustrations to class books which were then published. (Special to The News)
Students with dyslexia at Maple Ridge school become published authors

Each contributed a story and illustration to a class book

Golden Ears Mountains, captured in May 2021. (Black Press Media files)
2nd year of day passes required for entry into 5 provincial parks launches in B.C.

Pilot program seeks to protect the environment by addressing visitor surges amid the COVID-19 pandemic

The Outdoor Recreation Council of B.C. says the province continues to invest too little in BC Parks, compared with public demand. (Special to The News)
Outdoor rec group decries parks funding

Golden Ears Park packed by record numbers of visitors

Community residents, businesses, and youth are all encouraged to complete economic development surveys. (The News files)
City of Maple Ridge asks for community input on economic development

Three surveys available online will help shape strategy for years to come

COVID-19. (Image courtesy CDC)
Schools in Maple Ridge, Pitt Meadows exposed to COVID-19

Davie Jones and Hammond elementary schools have confirmed cases

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Police closed off 16th Avenue between 232nd and 240th streets in Aldergrove Saturday night at the site of a reported motor vehicle accident. (Dan Ferguson/Langley Advance Times)
VIDEO: Survivors of rollover crash thank Good Samaritans for coming to their aid

Collision flipped vehicle into a 10-foot ditch on 16th Avenue in Langley

Val Litwin is the latest candidate to declare his bid for the B.C. Liberal leadership. (Litwin campaign video)
Political newcomer joins contest for B.C. Liberal leadership

Val Litwin a former B.C. Chamber of Commerce CEO

Lincoln Mckoen. (YouTube)
Anglican bishop of the central Interior resigns over sexual misconduct allegations

Lincoln Mckoen was elected as a bishop of the Territory of the People region last year

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The former Kamloops Indian Residential School on the Tk’emlups te Secwépemc reserve. (Allen Douglas/Kamloops This Week)
Tk’emlups preparing for archaeological work at B.C. residential school site where remains found

The 215 graves are, to the band’s knowledge, undocumented deaths for which it is still collecting records

Fans watch the warm-up before Game 6 between the Toronto Maple Leafs and the Montreal Canadiens in NHL playoff hockey action Saturday, May 29, 2021 in Montreal. Quebec’s easing of COVID-19 restrictions will allow 2,500 fans to attend the game for the first time in fourteen months. THE CANADIAN PRESS/Ryan Remiorz
Two-thirds of Canadians say governments shouldn’t lift all COVID-19 restrictions

Poll reports Canadians who gained pandemic weight say they have gained 16 pounds on average

Paul Bernardo is shown in this courtroom sketch during Ontario court proceedings via video link in Napanee, Ont., on October 5, 2018. Teen killer and serial rapist Paul Bernardo is set for a parole hearing today. The designated dangerous offender, has been eligible for full parole for more than three years. Bernardo’s horrific crimes in the 1980s and early 1990s include for kidnapping, torturing and killing Kristen French and Leslie Mahaffy near St. Catharines, Ont. THE CANADIAN PRESS/Greg Banning
Killer rapist Paul Bernardo faces parole hearing today; victim families opposed

Designated dangerous offender has been eligible for full parole for more than three years.

People look over the damage after a tornado touched down in Mascouche, Que., north of Montreal, Monday, June 21, 2021. Dozens of homes were damaged and one death has been confirmed. THE CANADIAN PRESS/Ryan Remiorz
One dead and extensive damage as tornado hits Mascouche, Que., north of Montreal

Damage reported in several parts of the city, and emergency teams dispatched to sectors hardest hit

Most Read