billy corgan
Active Member
Also 905 sales crashing 46% and prices down 8%.
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Toronto house sales off 54% and the average price down 12%
- Thread starter billy corgan
- Start date
Alvar
Active Member
You know things are bad when no one responds to such a post. Shhhh. If every one stays really, really quiet, it will go away.
jb007
New Member
great post and news. hopefully they drop more as they should to be honest. as the enron guys said: burn baby burn
Woodbridge_Heights
Senior Member
I'm not so concerned about the drop in sales as I am in the drop (or lack there of) in prices. 12% is not significant if you are among those that consider the toronto RE market over priced.
So there are fewer people buying homes, sellers are still getting 'top dollar' for their houses.
So there are fewer people buying homes, sellers are still getting 'top dollar' for their houses.
Glen
Senior Member
That snowball just started its descent.
cdr108
Senior Member
Considering TO is in its' 1st year of declines, I would say it's fairly significant.
That's why you have the RE industry and banks trying to change the way they report the numbers and say that it's skewed by certain sales, etc.
Funny thing is ... they didn't bring up the SAME ISSUES when prices were going up.
BTW, a 12 % decrease = 14% increase to break even.
daveto
Active Member
Consider also what has happened to mortgage rates over the past 12 months. From a BOC rate of 4% to 1%. So a buyer has a lot more purchasing power and that juices the market. (...but of course that only lasts 5 years until it it time to renegotiate...)
carturo15
Active Member
The Toronto real estate market is not over-priced. We are not facing economic fundamental issues like USA, the point in Toronto is just confidence, I know many people that have been backing out from deals just for fear, but they do not have any issues getting their mortgages or getting their downpayments. They are just waiting to see what happens. Actually in downtown Toronto the prices have kept stable, Condos are still being negotiated for resale in the $450-500 per sq ft. range
cabbagetowner
Active Member
you've got your head in the sand if you think t.o. re is not going down in the short term. but out of all the cities in canada, i would say toronto is the most balanced.
jb007
New Member
I would say montreal is the most balanced. Their prices are a steal especially downtown.
True some key fundamentals in TO are nothing like the U.S - debt levels and financial sophistication/engineering.
That beign said, TO is in pretty bad shape. Recall reading a good report indicating major cities per buildings, and new residential constructions.
TO was one of the main over-constructed cities other being dubai, panama.
True some key fundamentals in TO are nothing like the U.S - debt levels and financial sophistication/engineering.
That beign said, TO is in pretty bad shape. Recall reading a good report indicating major cities per buildings, and new residential constructions.
TO was one of the main over-constructed cities other being dubai, panama.
vancouverguy_76
Active Member
I agree with cabbagetowner and I'm in Vancouver, LOL. Toronto has the corporate headquarters, a decent quality of life, and doesn't have Quebec's restrictive language laws. I think, in the long run, Toronto will do just fine. In fact, I think it's gonna pick up and be better than ever.
jb007
New Member
I agree. longterm, toronto is perfectly fine.
cdr108
Senior Member
Well that's a blanket statement that applies EVERYWHERE !
Longterm, anywhere is fine.
But there is a valid concern about buying at the peak (like last year or in 1989) and possibly not seeing your home's value return for 25 years (when one takes inflation into account).
Ken
New Member
(TO fundamental is still strong), and (the confidence issue) are the only reasons sellers are hanging on to their high prices. I don't want to be mean, but this is my feeling. Usually, it's already too late once the facts come out, or when one fully understands the fundamental/situation.
I can see that a lot of the industries are 'following suit.' Look at the US mortgage industries, then US Financial, then TSX energy/raw materials, then Canadian Financial, then TSX... (help me out on the order)
Don't argue with the market, and fight on the right side. 'Markets are never wrong - opinions often are.'
Mind you that I am biased, and I want to buy cheap house for myself.
I can see that a lot of the industries are 'following suit.' Look at the US mortgage industries, then US Financial, then TSX energy/raw materials, then Canadian Financial, then TSX... (help me out on the order)
Don't argue with the market, and fight on the right side. 'Markets are never wrong - opinions often are.'
Mind you that I am biased, and I want to buy cheap house for myself.
MBS-Guru
Active Member
(TO fundamental is still strong), and (the confidence issue) are the only reasons sellers are hanging on to their high prices. I don't want to be mean, but this is my feeling. Usually, it's already too late once the facts come out, or when one fully understands the fundamental/situation.
I can see that a lot of the industries are 'following suit.' Look at the US mortgage industries, then US Financial, then TSX energy/raw materials, then Canadian Financial, then TSX... (help me out on the order)
Don't argue with the market, and fight on the right side. 'Markets are never wrong - opinions often are.'
Mind you that I am biased, and I want to buy cheap house for myself.
I'm not sure what stats you are looking at but the fundamentals is NOT strong in TO. The number of full-time job losses is mind blowing in the GTA. Most are manufacturing and tech related but nevertheless.