News   Apr 26, 2024
Sustainability Month: ReHousing — A Multiplex How-To Guide Explores What’s Possible in the Yellowbelt
 2.3K     4 
News   Apr 26, 2024
Mattamy's Soleil and Mile & Creek Condos in Milton’s Flourishing Landscape
 551     0 
News   Apr 26, 2024
Galleria on the Park Soon to Welcome First Residents of Masterplanned Community
 1.2K     1 

Why the housing market is not set to melt down

TKTKTK said:
According to what? Do you mean 3 more years of double-digit appreciation to come? Are you really suggesting that Toronto real estate prices are that low?



Yes, but only 10,000 of those were full-time. Most people have correctly attributed the giant uptick to temporary election-related part-time positions.



No one is suggesting that what's happening in the states is going to happen here. But that doesn't mean we won't have our own, more modest, correction.



Really? Because it keeps sounding as if you think we're still heading up.
Click to expand...



It's a lost cause TKTKTK.

I'm all for positive thoughts and energy, but sticking one's head in the sand and waiting for the train to run them over is another.

Half the things Condoboy has listed have occurred but if one waits for the 'Perfect Storm' then forget a recession and go straight for the big D.
 
So fewer "expensive" homes have sold in the first half of October. This should be no surprise given the stock market turmoil.

I guess I can understand why a few posters/renters out here would "wish" for a real estate collapse.

"Buy when everyone's fearful, and be fearful when everyone's buying".

Seriously, if today you were to buy a well located property in Toronto (one with perhaps a few rare attributes), you can almost guarantee it will be worth more in five years from now.

Let's get a bit of perspective before jumping out the window.
 
Johnzz said:
So fewer "expensive" homes have sold in the first half of October. This should be no surprise given the stock market turmoil.
Click to expand...

Care to back that up with anything? Is there a huge back stock of inexpensive real estate left in the city? Hasn't seemed to be there when I've looked... Unless it's a pre-construction shoebox condo...

I guess I can understand why a few posters/renters out here would "wish" for a real estate collapse.

"Buy when everyone's fearful, and be fearful when everyone's buying".
Click to expand...

Absolutely, but I don't think anyone believes the 'fear' has hit the mainstream yet. There is still a lot of residual hysteria - even if you don't see much of it on here.

Leaping at properties you can barely afford because of a fear that things might get even more unaffordable seems to still be the general tone.

Seriously, if today you were to buy a well located property in Toronto (one with perhaps a few rare attributes), you can almost guarantee it will be worth more in five years from now.

Let's get a bit of perspective before jumping out the window.
Click to expand...

5 years? maybe. 10 years? for sure. 2-3 years? almost definitely no.
 
Johnzz said:
So fewer "expensive" homes have sold in the first half of October. This should be no surprise given the stock market turmoil.

I guess I can understand why a few posters/renters out here would "wish" for a real estate collapse.

"Buy when everyone's fearful, and be fearful when everyone's buying".

Seriously, if today you were to buy a well located property in Toronto (one with perhaps a few rare attributes), you can almost guarantee it will be worth more in five years from now.

Let's get a bit of perspective before jumping out the window.
Click to expand...

It's no use Johnzz, I've already tried...just like I am hopeful that the real estate market stays solid, there are some UT forum members that are hopeful the market crashes so they can cash in on their income properties. There's one in particuliar that keeps following every one of my posts like a lost little puppy, it's actually getting a little bit annoying being re-buttled after every post.
 
TKTKTK said:
Gee dude, tough life. People are replying to your posts. I suppose we all know the way around that...
Click to expand...

I wasn't talking about you TKTKTK...at least you make some valid points and for the most part ask some thought provoking questions...others just make baseless statements that warrant no responses at all. I just don't understand how some people are quite gleeful at the thought of a real estate collapse...it's pretty sad actually.
 
Johnzz said:
So fewer "expensive" homes have sold in the first half of October. This should be no surprise given the stock market turmoil.

I guess I can understand why a few posters/renters out here would "wish" for a real estate collapse.

"Buy when everyone's fearful, and be fearful when everyone's buying".

Seriously, if today you were to buy a well located property in Toronto (one with perhaps a few rare attributes), you can almost guarantee it will be worth more in five years from now.

Let's get a bit of perspective before jumping out the window.
Click to expand...

While i agree that some of these guys are renters who's seeking a crash, i am not one of them. I actually work for one of the downtown financial companies that deals in this industry. Trust me, the numbers do not look good going into 2009 as we can easily forecast 3 months in advance and those that have bought recently will lose for the next little while. Condoboy, there is nothing comical about a 30% decline .... as you and everyone will see over time. Nobody's is trying to create fear but it is important that young families do not make stupid decisions that could steer them towards financial suicide for the next 5-10 years. I've seen the destruction that insurmountable debt can create for families just starting out and nobody should go through that pain and stress of seeing their assets plummet. Listen, there will always be those who will buy in today's market, just like those who buy oil at $130 or those who continue to buy speakers from white vans but the fact of the matter is that the uninformed don't know what they don't know .... as we can't all be winners. Good luck to all and take care.
 
condoboy said:
I wasn't talking about you TKTKTK...at least you make some valid points and for the most part ask some thought provoking questions...others just make baseless statements that warrant no responses at all. I just don't understand how some people are quite gleeful at the thought of a real estate collapse...it's pretty sad actually.
Click to expand...


I don't think that anyone her is really glad. They are just pointing out the obvious. Prices have come down and will most likely continue to do so. Eventually they will go back up again but when is anyone's guess.

That being said, there are certainly some positives to this. When housing prices decline, for those whom can take advantage, they have more money to spend on other items. This can provide for stimulus in other areas of the economy.
 
MBS-Guru said:
While i agree that some of these guys are renters who's seeking a crash, i am not one of them. I actually work for one of the downtown financial companies that deals in this industry. Trust me, the numbers do not look good going into 2009 as we can easily forecast 3 months in advance and those that have bought recently will lose for the next little while. Condoboy, there is nothing comical about a 30% decline .... as you and everyone will see over time. Nobody's is trying to create fear but it is important that young families do not make stupid decisions that could steer them towards financial suicide for the next 5-10 years. I've seen the destruction that insurmountable debt can create for families just starting out and nobody should go through that pain and stress of seeing their assets plummet. Listen, there will always be those who will buy in today's market, just like those who buy oil at $130 or those who continue to buy speakers from white vans but the fact of the matter is that the uninformed don't know what they don't know .... as we can't all be winners. Good luck to all and take care.
Click to expand...

The most comical thing on this forum is the fear mongering that goes on from some UT members...it's quite prolific and not at all strange as I have come to know. Every person feels the way they feel for certain reasons, but there are those out there that fuel the fire and create hysteria for their own personal agendas. In my humble opinion I don't believe that families who are starting out and need a place to live should be dissuaded from purchasing a home at this time because of all this speculation, it only creates even more panic. If a family is financially stable, is willing to live in their home for more than a cup of coffee, and get the pre-approval there should be nothing stopping them from doing so. Remember, not too long ago in the recent past when interest rates were 10, 12, 14%... We wouldn`t be having this conversation of whether to buy or not at all!
 
condoboy said:
In my humble opinion I don't believe that families who are starting out and need a place to live should be dissuaded from purchasing a home at this time because of all this speculation, it only creates even more panic.
Click to expand...

I disagree. No one is really sure where the market is going to go in the next couple of months, to a year. One thing is for certain though; we're not going to see high% increases. At most, you'll see prices keep pace with inflation.

A first time buyer has more to gain from waiting a year than he stands to lose: most likely he'll see lower house prices, but at worst prices will stay the same and he'll really only have lost a year's progress on his mortgage.
 
it all depends on the deal. when it comes to a home, personal circumstances are more important than the broader market. when it comes to income properties, things are starting to look up.
 
Now that the oil bubble has burst, we must hold our breath and hope it doesn't burst the real estate bubble, too. Watching CNBC tonight, it was said that the price of oil dropping as much as it has in the past month has injected $250 billion into the American economy - and has possibly staved off a catastrophic rise in heating oil prices for the coming winter.
How deep this recession becomes (and how much it affects us Canucks) will depend on what kind of a rehabilitative effect (if any) this rapid drop in energy prices will have on the greater economy.

That, my fellow fear-mongerers :D is the wild card.
 
You must log in or register to post here.

Back
Top