The drop is much higher than mentioned by Rahul.

Condos have dropped 15% from peak value of 2007 - a saving of $44,000 from 2007!

Single family homes have dropped 10% to 13% from peak value of last year - saving of as much as $66,000 from 2007!

Is it going to fall more? Most definitely YES!!! I'd say another 15% for SFH and 20% for Condos from today's values.

You have to watch this....it is nasty,,nasty

Waiver...not for the faint hearted

http://kcet.org/socal/2008/09/foreclosure-alley.html

Hopefully it wont happen in Canada.

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"After climbing a great hill, one only finds that there are many more hills to climb." (Nelson Mandela)

SOL in the GTA

http://www.greaterfool.ca/
A few words about Toronto, now. The housing market in this urban sprawl is the largest in Canada and the local economy the country’s most diversified. Therefore, the common wisdom a few months ago was that my prediction of a 15% decline in the average value of houses was worthless – the alarmist bleatings of a guy trying to sell books to scared people.

But, my view was based on several assumptions, namely (1) The US mess would intensify as 2008 progressed, with inevitable consequences for every centre in Canada, TO included, (2) real estate in Toronto was over-valued relative to the average family income, exceeding the ratio touched just before the last collapse 16 years ago, (3) sales in the sprawl areas of Durham, York, Peel and Halton would tank with the end of 0/40 mortgages and the energy scare, (4) Toronto prices would suffer notably due to the insane extra land transfer tax imposed by the dumb-ass mayor, (5) the local condo scene was massively and insanely overbuilt with 56,000 units in the pipeline and (6) consumers and homeowners in even godless Toronto can get spooked like the rest of us, stop buying and create their own funky little recession.

So, of course, it happened. Even a little sooner than I had anticipated.

In the first half of this month, sales plunged by 18% over year-ago levels, and the average price plunked by 11% across the GTA. Worse, Toronto City real estate has collapsed by the 15% I had forecast months ago. And there is more to come. Lots more.

Meanwhile carnage continues to seep northward from the urban masses. Sales in the swishy Muskoka cottage area have collapsed by 43% this year, killed off by a combination of bad weather, soaring gas prices and – especially – financial carnage and collapsing confidence down in the city. Most affected are high-end properties, owned by the same smart people who bought their Porsches with LOC money.


All of this was predictable, and inevitable. Also not over.

But throughout the decline, it’s been repulsive how real estate vested interests tried to talk the market up, or at least send false signals to potential buyers.

For example, how about this gem from Toronto Real Estate Board president Maureen O’Neill issued just 15 days ago: “Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment.” Well, not so much, since a house bought 1 year ago is today worth 15% less. When closing costs and commission are factored in, the loss tops 20% - not that far off the dive in stocks. Making it worse: capital losses on residential real estate are not deductible from capital gains.

Another O’Neill nugget from earlier this month, “Given that these are trying times for the world economy, in context the Greater Toronto Area resale housing market continues to fare quite well.” Compared to what? A bungalow in Reykjavik?...........................

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Good to know?

In Canada you are responsible for your entire debt. If you borrow a mortgage amount larger than your equity, and walk, then you are liable for the full amount, plus court costs and quite possibly an early repayment penalty. The only way out is bankruptcy - and if you think getting credit now is hard, just try that. — Garth

I read a similar report in Toronto Star also, the relentless real estate market in GTA used to surprise me despite the crumbl(-ed)ing one on the south of the border. Though the report is evident that the housing is not so immuned still I will have to dispute that I am yet to see a price drop (It is true that the selling pace is quite stagnant).

Any body else witnessing a price correction in your area ?
Any body else witnessing prolonged listing of a property close to your neighbourhood ?

Quote:

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Originally posted by rahul_singh23

Good to know?

In Canada you are responsible for your entire debt. If you borrow a mortgage amount larger than your equity, and walk, then you are liable for the full amount, plus court costs and quite possibly an early repayment penalty. The only way out is bankruptcy - and if you think getting credit now is hard, just try that. — Garth

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

Quote:

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Originally posted by JRF
Any body else witnessing a price correction in your area ?
Any body else witnessing prolonged listing of a property close to your neighbourhood ?

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I am a Gents and not a Ladies.

Quote:

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Originally posted by tamilkuravan

Quote:

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Originally posted by JRF
Any body else witnessing a price correction in your area ?
Any body else witnessing prolonged listing of a property close to your neighbourhood ?

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Since I work with a lot of builders who are building new houses, I know quite a bit about new housing sale.
The builders are finding it very hard to sell new houses in Brampton and Ajax (2 of our project sites). They had sold all their houses in 2006 (and currently building) but they are not doing (Building/ starting) phase 2 yet
We also have a builder who is building normal homes in Maple (Major Mac and Keele) but with high cost. He is selling around 1 house a month.
We have got a new project which consists of 120 houses (60' and 70' foot lots which are huge houses) in King city and which I find it quite hard to belive that some one will ever buy these big houses with such a credit crunch and housing meltdown in the USA. The houses are scheduled to start being built by Jan 2009 (after christmas).
But what is also surprising to me is that we also have a big project in Muskoka which consists of 200 villas -Muskoka type (Townhouse type) each of around $400,000 + and the builder told me yesterday that he has sold around 32 as of now and that he will sell around 18 town houses(villas) by this month end.
So the message is really mixed and confusing...
On a side note : our office is hiring for these projects.

Peace by TK

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

http://www.greaterfool.ca/

...............And, yes, there is real estate. So far, the average house price has dropped by $30,000 in Toronto, $45,000 in Vancouver, $17,000 in Ottawa, $61,000 in Calgary and $64,000 in Edmonton. At the same time, 0/40 mortgages are gone, mortgages are harder to get and rates are higher for those who do qualify. There are more houses for sale than ever, and sellers are having to wait vastly longer times to find a buyer. If they can. And this has just started............

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Q: How do our experts predict next 6 months in their local area?