JohnQCitizen
New Member
If the housing market crashes, it'll affect everyone in the country sooner or later.
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The Housing Market needs to crash.
- Thread starter denfromoakvillemilton
- Start date
Automation Gallery
Superstar
This should disappoint many here.........Canada’s hot condo market set to get even hotter
TORONTO — A new condo report suggests first-time buyers, retirees and population growth will continue to fuel demand and price growth for the compact living spaces over the next few years.
The study by Genworth Canada found that average condo resale prices are expected to rise next year in seven of the eight metropolitan centres studied.
Prices in Toronto are projected to jump 2.5% to $312,352.
More....http://business.financialpost.com/2012/08/30/canadas-hot-condo-market-set-to-get-even-hotter/
Immigration, baby boomers and low interest rates will save Toronto condo market from major downturn
Low interest rates, high immigration and downsizing baby boomers will keep the bottom from falling out of Toronto’s softening condo market, says a new report by the Conference Board of Canada.
More.....http://www.thestar.com/business/art...from-major-downturn-conference-board-predicts
TORONTO — A new condo report suggests first-time buyers, retirees and population growth will continue to fuel demand and price growth for the compact living spaces over the next few years.
The study by Genworth Canada found that average condo resale prices are expected to rise next year in seven of the eight metropolitan centres studied.
Prices in Toronto are projected to jump 2.5% to $312,352.
More....http://business.financialpost.com/2012/08/30/canadas-hot-condo-market-set-to-get-even-hotter/
Immigration, baby boomers and low interest rates will save Toronto condo market from major downturn
Low interest rates, high immigration and downsizing baby boomers will keep the bottom from falling out of Toronto’s softening condo market, says a new report by the Conference Board of Canada.
More.....http://www.thestar.com/business/art...from-major-downturn-conference-board-predicts
Bloor101
New Member
A study by a company that is in the mortgage business...Very credible...What are they going to do? Publish something that says the market is going to get worse and their business is going to suffer?
TrickyRicky
Senior Member
I love the language of the article: Prices expected to jump 2.5%. In other words their opinion is prices are going to stagnate to the rate of inflation. That is absolutely a good thing by the way. For me the best scenerio would be 5 years of price stagnation. 5 years of price stagnation would be like a dream.
blixtex
Active Member
Sales levels are down significantly. Big sign that prices will follow.
New mortgage rules will also restrict virtually all first timers.
New mortgage rules will also restrict virtually all first timers.
nfitz
Superstar
Listing are also way down. Are sales down because there's less to sell?
I can see perhaps a price fall on condos ... I have a hard time seeing single-family houses falling much, and for long, given the lack of supply.
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James
Senior Member
The SFH market has seen a deceleration in price appreciation for the last couple of months or so. Now keep in mind I said deceleration, meaning they're still appreciating, simply at a slower rate than the beginning of the year and prior.
I do think the lower sales volume has more to do with fewer sellers putting their property out there "just to see" as many were doing previously.
balenciaga
Banned
As a condo owner myself, I hope Toronto's condo price WILL come down, and it should. We are not Manhattan and will never be. We don't want to be another Vancouver either. A city should be able to provide reasonable housing price so that well educated young people can see a future and want to stay.
Usually economic problems arising from real estate bubble takes longer to recover because it deplete people's pocket as well as confidence, and hurts banks' balance sheet badly. We don't want that to happen to Toronto.
I hope Toronto's condo price will stabilize, hopefully show some reduction in the coming years. A 500sf box charging "mid 300's" is ridiculous, even on King West. I don't think or wish single family houses will decline though, nor do I want to see more supply to make it more affordable. Single family houses farther and farther away from the city cause increasing sprawl and lead to deteriorating congestion, making a city less and less livable, especially when population is seeing healthy growth. Families should start to embrace compact living and demand less space. This is how a city thrives on a sustainable basis.
Usually economic problems arising from real estate bubble takes longer to recover because it deplete people's pocket as well as confidence, and hurts banks' balance sheet badly. We don't want that to happen to Toronto.
I hope Toronto's condo price will stabilize, hopefully show some reduction in the coming years. A 500sf box charging "mid 300's" is ridiculous, even on King West. I don't think or wish single family houses will decline though, nor do I want to see more supply to make it more affordable. Single family houses farther and farther away from the city cause increasing sprawl and lead to deteriorating congestion, making a city less and less livable, especially when population is seeing healthy growth. Families should start to embrace compact living and demand less space. This is how a city thrives on a sustainable basis.
ttk77
Senior Member
We're nowhere near Manhattan in terms of prices, nor even Vancouver (though that may be changing given the falling prices there). Price stagnation in Toronto's condo market would definitely be a good idea, letting inflation make the prices more affordable. Falling prices would not be a good thing though. All those over leveraged first time buyers out there could find it hard to renew their mortgages in a few years time if they find they're owing more than their condos are worth. This would lead to more condos on the market and even more downward pressure on prices...an effect that could snowball. Not a good thing for anyone.
Thanos
Active Member
We are not even in the same stratosphere as Manhattan prices.
balenciaga
Banned
no, we are not. We are about 50% of that.
Condo price starts at about $1200/sf in Manhattan, roughly about twice as much as it is there, as far as I know.
Vancouver is about 50% higher, right?
cdr108
Senior Member
considering most economists think Toronto is at least 25% overprice, there would have to be about 8-10 years of stagnation in prices.
falling prices may not be a good thing, but neither is rewarding the over-leveraged first-time buyer (and others) who should not have been in the market for as much as they are.
balenciaga
Banned
I don't think housing price will be "stagnant" for 10 years to gradually absorb inflation. In most cases, housing prices either go up or go down. Market is fluid. When houses don't sell, prices come down.
TrickyRicky
Senior Member
House prices do indeed stagnate. They can stagnate for generations. The duration of this low interest rate high price environment we are in today represents the worst conditions for long-term wealth generation in real estate in my life-time.
ttk77
Senior Member
This isn't about rewarding or punishing. If these buyers start defaulting then all home owners suffer.
I would really like to understand how economists make their estimations of what the market should be valued at. What standard are they using? How do they account for the investor factor? I'm not disputing that things are overvalued, but there's a wide range of predictions out there and in the end, most of them are going to be wrong.