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The Housing Market needs to crash.

Yeah, but that would mean interest rates rising and people becoming unable to pay their mortgages. I'd rather that not happen. I'd prefer a softening in demand.
 
denfromoakvillemilton said:
Foreclosure Nation!..., no seriously, you should not be buying things you can't afford.
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Define affordability. Sure, people should plan in a few points in interest rate rising to make sure they can renew after their term is up, but if a true bubble burst were to happen where prices declined a great deal over a short period of time even people who didn't overextend and who put down 20% on a 25 year amortization could find themselves in trouble. The masses of people who are forced to sell or go into foreclosure will be looking to rent and rental prices will skyrocket. The bubble burst could lead to the entire economy tanking, much like it did south of the border.

Hoping for the real-estate bubble to burst is at best incredibly silly.
 
ttk77 said:
Define affordability. Sure, people should plan in a few points in interest rate rising to make sure they can renew after their term is up, but if a true bubble burst were to happen where prices declined a great deal over a short period of time even people who didn't overextend and who put down 20% on a 25 year amortization could find themselves in trouble. The masses of people who are forced to sell or go into foreclosure will be looking to rent and rental prices will skyrocket. The bubble burst could lead to the entire economy tanking, much like it did south of the border.

Hoping for the real-estate bubble to burst is at best incredibly silly.
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Indeed it is. Very short-sighted. Hoping for more affordability is more appropriate. I'm looking for a condo in the $450K range and not finding much for my needs. Half a million dollars. It's nuts.
 
ttk77 said:
Define affordability. Sure, people should plan in a few points in interest rate rising to make sure they can renew after their term is up, but if a true bubble burst were to happen where prices declined a great deal over a short period of time even people who didn't overextend and who put down 20% on a 25 year amortization could find themselves in trouble. The masses of people who are forced to sell or go into foreclosure will be looking to rent and rental prices will skyrocket. The bubble burst could lead to the entire economy tanking, much like it did south of the border.

Hoping for the real-estate bubble to burst is at best incredibly silly.
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Right, but there are those people making, well not a lot, and buying these homes. There are also the absent owners. This market is way too overvalued.
TheKingEast said:
Indeed it is. Very short-sighted. Hoping for more affordability is more appropriate. I'm looking for a condo in the $450K range and not finding much for my needs. Half a million dollars. It's nuts.
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See? Outrageous.
 
I'm certainly not arguing that many people aren't overextended. There are plenty of owners who should probably still be renting, and plenty more who should have bought something less expensive. If there's a sharp jump in interest rates over the next few years our economy is going to be in for a very rough ride. There's a big difference between knowing a lot of people are on the precipice and hoping they fall off though. Much of the sentiment on this thread seems to be about hoping they fall off, and that's what my "silly" comment was directed at.

It's in all of our best interest that the housing market has a soft landing, and not just the interest of those who bought more than they could afford.
 
ttk77 said:
It's in all of our best interest that the housing market has a soft landing, and not just the interest of those who bought more than they could afford.
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That's what I was saying. My rental costs are already high enough and vacancies too low.
 
This discussion is appropriately in the "Toronto Issues" section because, as ttk77 and some others have pointed out, a housing market crash isn't only going to affect the real estate market by itself. It doesn't exist in a vacuum. It will have a ripple effect throughout the entire economy and health of the city. If the housing market does indeed crash, it won't just be a real estate issue but rather a huge "Toronto issue."
 
MTown said:
That's what I was saying. My rental costs are already high enough and vacancies too low.
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Yeah. When I rented my last place about 6-7 years ago the vacancy rate was so high that landlords were offering free rent/parking/televisions to prospective tenants. I bought a condo four years ago, and it's amazing how much the situation has changed since then.
 
I wish!

Yeah, when I was moving to Parkdale 8 years ago they gave us one month free rent. These days? I'm paying 1300+ for a 350 sq ft studio that was originally going for 1400/mth.

That, or the 6 weeks it took me to find a 2 bedroom for a reasonable (1425+) price two years ago.

On top of that, I work in custom residential construction, so a healthy real estate market is healthy for my ability to feed myself.
 
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