Back to Home PageWelcome Guest! Register | Login | Home | Contact Us | Site Map | Advertise | FAQ | Search
Canadian Desi
    Charcha


        
  Canada Immigration Forum > About Canada > Real Estate & Mortgages > Toronto home sales fall for fourth month, plunge 40 percent year-on-year
Last Post | Newest Post
 
< [ 1 ] [ 2 ] >

Toronto home sales fall for fourth month, plunge 40 percent year-on-year




Toronto home sales fall for fourth month, plunge 40 percent year-on-year:

http://ca.reuters.com/article/topNews/idCAKBN1AJ1IO-OCATP

40% is a huge (and a scary) drop. I heard from a friend of mine who lives in Brampton as to how the prices are dropping as well, with no guarantee that the house will sell in its due course. That does not sound too good.

So, what do you make up of this report? And, how are you seeing this trend in housing/real estate all around you?

Here in Metro Vancouver, the market for Detached has subsided already with not much activity. Bidding wars are scarce, although the prices are yet to come down to call it a real slowdown. On the other hand, Condos and Townhouses are seeing an upward trend as well as the bidding wars.

I would say, the next 6-12 months would be interesting. Especially, when it is time for Bank of Canada to review the Interest rates.


 
Last edited by: febpreet on 03-08-17 13:30:22
febpreet

Senior Desi
Member since: Jan 07
Posts: 3252
Location:

Post ID: 235760 03-08-17 13:12:03
Report Abuse
hchheda
Senior Desi
Member since: Aug 05




Posts: 2236
Location: Woodbridge


Quote:
Originally posted by febpreet

Toronto home sales fall for fourth month, plunge 40 percent year-on-year:

http://ca.reuters.com/article/topNews/idCAKBN1AJ1IO-OCATP

40% is a huge (and a scary) drop. I heard from a friend of mine who lives in Brampton as to how the prices are dropping as well, with no guarantee that the house will sell in its due course. That does not sound too good.

So, what do you make up of this report? And, how are you seeing this trend in housing/real estate all around you?

Here in Metro Vancouver, the market for Detached has subsided already with not much activity. Bidding wars are scarce, although the prices are yet to come down to call it a real slowdown. On the other hand, Condos and Townhouses are seeing an upward trend as well as the bidding wars.

I would say, the next 6-12 months would be interesting. Especially, when it is time for Bank of Canada to review the Interest rates.



It's the news editors job to present the news in a sensational manner.. for obvious reasons. :D

The drop is number of sales not the property price. The prices have dropped about 6-7% which is negligible compared to successive 10%+ increases in the recent past.

The buyers are uncertain and some will employ a wait and watch approach to see if the prices drop further. The actual fall will start after the next rate increase when it will be no longer viable for the sellers to hold on. I came across a few sellers who bought during the frenzy in March-april hoping to recoup the overpayment by selling their own house at a higher price. They are now stuck since quite a few of them have closing dates approaching and the market is moving sideways.

A few detached house in our neighborhood sold under asking at a price almost $150k less April prices. A few listing have disappeared without sale and might reappear in Dec/Jan after the uncertainty has settled. 45-60 days time frame is becoming normal, the agents are no longer offering garantees...

I don't think GTA will follow BC trend since immediately after the 15% tax, the mortgage rates also increased with a strong rumor of another increase in September/October. This has taken some buyers out of the market.

Interesting times ahead. Not advisable to invest for flipping.. unless you have deep pockets and guts of steel.

Hiren


 
Last edited by: hchheda on 03-08-17 19:38:49
Post ID: 235763 03-08-17 19:36:58
Report Abuse
pendse
Senior Desi
Member since: Jun 17




Posts: 118
Location:


Prices won't go down in Toronto. They will stagnate. But they are already so high, it won't matter if they stagnate. So homeowners need not worry.

Plus mortgage interest rates are already so low another 0.25 increase won't make much of a difference, people will still buy.

People will just move to the suburbs of Toronto now, the 905 areas like Markham, Mississauga, Vaughan, Oakville, Ajax, Pickering.

If you have a house in the 905 area, you need not worry as most immigrants to Canada are settling there anyway, so prices won't go down. They need & will live there.

Desis come to Mississauga & Brampton. Chinese come to Markham. As long as 300,000 immigrants come each year to Canada the prices in GTA are not going anywhere. As no matter what you tell them, their primary destination of arrival is still Toronto & Vancouver.

They don't exactly want to live in Manitoba & Saskatchewan.


 
Post ID: 235764 03-08-17 20:08:44
Report Abuse
Full House
Senior Desi
Member since: Oct 12




Posts: 2387
Location:




In every family there is one earner who works and makes a few bucks and also has a small amount of savings which he wants to use to get a roof over his head. In some families there are TWO bread winners and they have more clout when they enter into these Real Estate Markets to buy a Property.

What they can buy is predetermined by the local THUMB RULES (Or the so called Laws) and they say you can only use 28% of your earnings for the purchase for a ROOF OVER YOUR Head.

Having said that, the increase in the interest rates puts a dent in everyone's budget. A few will find that a purchase of a MILLION Dollar Home, with $800,000 mortgage, will be out of their reach, even with two earners in tow. (2.6% fixed and on a 5 year fixed term and 25 year amtz.)

http://www.kahnawake.com/org/sdu/housing/calculator/CalcAmortE.htm

The R.E.Sellers are smart and just to accommodate these borderline buyers, they cut the prices down by say 7% value and throw them onto the markets, because they want a quick sale.

There they start the chain reaction. People who are observant and watching the R.E.Prices of homes, now find that the price of the same home has dropped down and those who were sitting on the fence whether to sell now or wait till it still going up, want to now enter and post their homes onto the market, lest they lose out on the Peak prices that they can get for their own property.

So, now we have 25% increase in R.E.ADs on the market. Everyone wants to dump their own holdings and move out. So we see a FEAR Factor has set in. There will be more increases in Interest rates going to creep in, and it is sooner than we thought, so they all want to sell and get out. Make their best bucks while the going is good.

I am not into Mortgage and I am not into Real Estate, but surely, a little bit of Arithmatic and a lot of logic and understanding of the Psychology of the markets and a little bit of sane thinking, I can come to a conclusion, that the sellers have entered the markets and the buyers will find more choices, either in Price and a Location and also a few with all of the frills and thrills thrown into it from here on.

So, Enjoy the ride, if you are into one. If you perchance are a BUYER, then, look out for a good bargain.

Have we burst the bubble? NAY.. it is just see sawing and it is the signs of times.

My two bits to the conversation at the start of the day.

Have a good long week end.

FH.


 
Post ID: 235767 04-08-17 11:39:57
Report Abuse
zindabad
Senior Desi
Member since: Sep 12




Posts: 281
Location:


Quote:
Originally posted by Full House

In every family there is one earner who works and makes a few bucks and also has a small amount of savings which he wants to use to get a roof over his head. In some families there are TWO bread winners and they have more clout when they enter into these Real Estate Markets to buy a Property.

What they can buy is predetermined by the local THUMB RULES (Or the so called Laws) and they say you can only use 28% of your earnings for the purchase for a ROOF OVER YOUR Head.

Having said that, the increase in the interest rates puts a dent in everyone's budget. A few will find that a purchase of a MILLION Dollar Home, with $800,000 mortgage, will be out of their reach, even with two earners in tow. (2.6% fixed and on a 5 year fixed term and 25 year amtz.)

http://www.kahnawake.com/org/sdu/housing/calculator/CalcAmortE.htm

The R.E.Sellers are smart and just to accommodate these borderline buyers, they cut the prices down by say 7% value and throw them onto the markets, because they want a quick sale.

There they start the chain reaction. People who are observant and watching the R.E.Prices of homes, now find that the price of the same home has dropped down and those who were sitting on the fence whether to sell now or wait till it still going up, want to now enter and post their homes onto the market, lest they lose out on the Peak prices that they can get for their own property.

So, now we have 25% increase in R.E.ADs on the market. Everyone wants to dump their own holdings and move out. So we see a FEAR Factor has set in. There will be more increases in Interest rates going to creep in, and it is sooner than we thought, so they all want to sell and get out. Make their best bucks while the going is good.

I am not into Mortgage and I am not into Real Estate, but surely, a little bit of Arithmatic and a lot of logic and understanding of the Psychology of the markets and a little bit of sane thinking, I can come to a conclusion, that the sellers have entered the markets and the buyers will find more choices, either in Price and a Location and also a few with all of the frills and thrills thrown into it from here on.

So, Enjoy the ride, if you are into one. If you perchance are a BUYER, then, look out for a good bargain.

Have we burst the bubble? NAY.. it is just see sawing and it is the signs of times.

My two bits to the conversation at the start of the day.

Have a good long week end.

FH.



Well Explained ..


 
Post ID: 235774 04-08-17 18:59:42
Report Abuse
febpreet
Senior Desi
Member since: Jan 07




Posts: 3252
Location:


This came just this morning.

What slowdown? Vancouver and Toronto real estate markets still hot and unaffordable for many

http://www.cbc.ca/news/business/real-estate-housing-toronto-vancouver-prices-1.4236245


 
Post ID: 235795 08-08-17 12:54:18
Report Abuse
pendse
Senior Desi
Member since: Jun 17




Posts: 118
Location:


Quote:
Originally posted by febpreet

This came just this morning.

What slowdown? Vancouver and Toronto real estate markets still hot and unaffordable for many

http://www.cbc.ca/news/business/real-estate-housing-toronto-vancouver-prices-1.4236245</font>


The slow down was a temporary blip. The sellers are not blinking and won't sell for less. Most have just taken their houses of the market. It will rebound again in Fall or next Spring. Winter will be slow again.

So buyers who think they can get one for cheap will keep on waiting.

I know someone in GTA who listed their 2 BHK Condo for $ 350,000 about 2 months back. They only got 8 visitors in 2 months and NO offer for $ 350,000 . So they have just taken it off the market and will try to sell maybe next year. Either they want to sell for $ 350 K or NO sale.

Its a fair market price, neither over priced nor under priced, as earlier in Spring 2-3 exactly same condos in the same building sold for $ 350,000 within days, hence they also priced it for the same amount .

The Number of sales & buyer have definitely reduced temporarily this spring/summer, but the prices haven't really in GTA.

Crazy bidding wars and paying above the asking price are NO longer happening in GTA. But the house will still be sold at the asking price and not below.


 
Post ID: 235796 08-08-17 13:38:43
Report Abuse
febpreet
Senior Desi
Member since: Jan 07




Posts: 3252
Location:


What's up with the houses such as the one with the link below, now listed for under $600k? The house and the neighborhood looks alright. I am pretty sure the last time ( I looked at Brampton listings, nothing stood out for less than $800-900k. And, now I could see hordes of the detached homes under $700k:

https://www.realtor.ca/Residential/Single-Family/18507968/78-FARTHINGALE-CRES-Brampton-Ontario-L7A1W8-Fletchers-Meadow

I also know a friend in Brampton, who had quite a hard time a month ago selling his decent detached in a pretty good neighborhood. He had to take it off market eventually.

Good time to be a buyer? Or no?


 
Last edited by: febpreet on 08-08-17 14:20:29
Post ID: 235798 08-08-17 14:16:58
Report Abuse
pendse
Senior Desi
Member since: Jun 17




Posts: 118
Location:


Quote:
Originally posted by febpreet

What's up with the houses such as the one with the link below, now listed for under $600k? The house and the neighborhood looks alright. I am pretty sure the last time ( I looked at Brampton listings, nothing stood out for less than $800-900k. And, now I could see hordes of the detached homes under $700k:

https://www.realtor.ca/Residential/Single-Family/18507968/78-FARTHINGALE-CRES-Brampton-Ontario-L7A1W8-Fletchers-Meadow

I also know a friend in Brampton, who had quite a hard time a month ago selling his decent detached in a pretty good neighborhood. He had to take it off market eventually.

Good time to be a buyer? Or no?



Very good house and very good price at $ 600 K. I would buy it in a heartbeat if I get it at that price, depending on how old or new the house is. If its too old, i.e year of construction, I will hesitate.

Definitely listed below market value for similar sized houses in Brampton. I think the reason might be, just a few blocks East of it, there is a Funeral home & Cemetery. If you don't care about these things, you should buy it at that price.


 
Post ID: 235800 08-08-17 15:31:14
Report Abuse
goldeneye
Senior Desi
Member since: Mar 05




Posts: 444
Location: London, ON

Nothing Scary. 40% drop in sales not in price.
Note that prices jumped to almost double in 3 yrs. What happened is that the inflated price came down a bit. The prices did not crash or house values came down.

Example

A 500 K house in mississauga in 2009 became 1.2 million in 2016. Which should have been atmost 800 k per fair evaluation. What happened now is that inflated 1.2 million came to 1.0 million or 950 K. This new lower price is still higher than normal appreciation.

So prices never fell down
They are still out of reach for many

It is the existing home owners who saw very inflated number are crying foul though they did not lose anything

-----------------------------------------------------------------
Non illigitamus carborundum

 
Post ID: 235809 09-08-17 17:07:01
Report Abuse
Contributors:
febpreet(3)  Full House(1)  goldeneye(1)  hchheda(1)  pendse(4)  zindabad(1)  
< [ 1 ] [ 2 ] >
 
Show Printable version
Send this page to a friend
Add to favorites
 


 
Web
CanadianDesi
Please Contribute!
Write an Article
Send Community News
Create Photo and Video Albums
Submit Good Pictures
List Useful Websites
Post Jobs
Submit Events
List for FREE!
Businesses
Classifieds
Social Organizations
Religious Places
Employment Agencies
Email Page
Your Email
Friend\'s Email

Advertise Contact Us Privacy Policy and Terms of Usage FAQ
Canadian Desi
© 2001 Marg eSolutions


Site designed, developed and maintained by Marg eSolutions Inc.