Are lower-end prices more stable?

[Royals32]

I have been stuck in my Scarborough condo for about 5 years, unable to sell because of a lengthy estate situation (bad will, dirty lawyer, etc.) but now things have finally gone my way and I am ready to unload this place and move into a house.

I have been watching prices on the units in my building for the last 18 months, and it seems that all this talk about prices dropping all over the place does not apply to the units in my building. The list prices are exactly what they were 18 months ago. Now here's the twist...we're only talking $175,000 for a 2 bedroom, 2 bathroom, 1000 sq/ft unit and the maintenance is close to $500/mo. Are homes in that range more likely to hold their 'value' than the ones that I've read about that have come down as much as 20%?

Also, the house I'm looking at buying is only listed at $279,000 and I'm curious if that would fall into the same category of low-end listings?

 

[cdr108]

To bet a better analysis, you should get the prices for the past 10 years and see what % appreciation has occurred in your building and the area where you are considering buying the house.

Sometimes, even in an appreciating RE market some places just don't go up in prices no matter what.

Be cautious of not paying a premium if you are considering buying an 'up and coming' neighbourhood. Some areas of TO have gone up alot because they were considered cheaper than the established, more desireable areas; yet have not gone through a complete gentrification.

This is not to say it's not good to buy there, just don't be over-paying since these areas will go down the most and first in a downturn, and will have a harder and slower time when the next RE boom happens.

As an example, there areas of Lansdowne/Bloor/Dupont is undergoing alot of building/gentrification; however, if you ask most people the area is still sketchy (ask the TTC drivers along that route).

From what I've read here, condos at Electric City were going for $300 psf, which is substantially lower that TO average of $400-450 psf.

IMO, when the economy goes south this coming recession, Lansdowne/Bloor/Dupont will go down first b/c it's not a desireable location to the majority of the population; hence affect resaleability.

Good luck.

 

[Royals32]

Thanks!

Where would I find the prices for the last 10 years? When I moved in 5 years ago, they were selling at $164K.


Good point on the 'up and coming' neighbourhood thing. I've had a look at some listings in Leslieville and the condition of the houses in my price range is not even liveable. I definitely missed the boat on that one and you are right, there is definitely a premium attached to those houses just because of the Leslieville tag. They may pay off some day but I can't afford to find out.

My main goal is value and getting the most out of my measly budget. There are a few areas that still appear to offer great value and have managed to remain off of most peoples' radars (which is just fine with me).