Lets talk about the ground reality - I don't see any visible drop in home prices in GTA. They are not going up but at the same time, they are not going down.

I think the sellers are trying to hold on to their prices so the sales number declined in last few months. I have also seen lots of houses for rent/lease after unsuccessful sale attempt. As long as BOC will keep the mortgage rates low, I don’t think the price will decline.

The new home prices are also steady. Instead of reducing the price, builders have raised the free upgrades. I think the new home price decides the resale price so new home price should go down first.

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A Delhite in Toronto

Resale home values have gone down by 3-4% so far from peak crazy price (before the new regulations), you are right the prices will not slide until the interest rate is revised big.

Our dollar is already high, causing our products expensive, revision of interest even another 1-2% would attract the many investors (so there are some benefits but mostly counterproductive), will cause our exports further expensive and push the economy down the drain.

15-20% from the peak would also not go very bad than raising the interest rate which would have unforeseen impact.

So, I feel a stalemate condition is in progress where it is the house price that would relent before the interest rates are revised. (Low sale volume itself is enough to sell the house at reduced price than interest rate).

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Originally posted by Delhite

Lets talk about the ground reality - I don't see any visible drop in home prices in GTA. They are not going up but at the same time, they are not going down.

I think the sellers are trying to hold on to their prices so the sales number declined in last few months. I have also seen lots of houses for rent/lease after unsuccessful sale attempt. As long as BOC will keep the mortgage rates low, I don’t think the price will decline.

The new home prices are also steady. Instead of reducing the price, builders have raised the free upgrades. I think the new home price decides the resale price so new home price should go down first.

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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

ok sales are down, (Ashedfc is missed here), but is there any ratio of available inventory Vs sales? If there is not much listing the sales will obiviously go down and that does not necessarily mean the market is down. Sellers and buyers at this point of time do not see any incentive in selling low or buying high and whatever listings that is there in the market probably 50% of them may not worth buying.

Is it true?
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The newest numbers from Toronto’s forest of condo towers are just dreadful.

In the last three months of 2012 sales of new units crashed 47%, from the same period a year earlier.
There are now 18,366 brand new, never-lived-in, unsold condos for sale.
At the same time, 207 new projects containing 56,866 more units are currently under construction.

Supply is overwhelming demand, sales are falling off a cliff and inventory is stockpiling. How is this not a formula for lower prices in the months ahead?

In fact, it’s already happening as thousands of formerly virginal, first-time sellers meet Mr. Market. A year ago there were 216,000 existing condos in the GTA and now there are 11,000 more. But sales are falling – by a significant 26%. That means more supply yet less demand, and prices are already cracking, down 3% in the last four months.

http://www.greaterfool.ca/2013/01/31/the-sting/#comments

Do you have similar statistics for single family homes by any chance ?(no condos, condos are better to get for rent, not very good for investment/ownership).

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Originally posted by rahul_singh23

Is it true?
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http://www.greaterfool.ca/2013/01/31/the-sting/#comments

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Originally posted by bhootnath

Do you have similar statistics for single family homes by any chance ?(no condos, condos are better to get for rent, not very good for investment/ownership).

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