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Originally posted by rahul_singh23

http://watch.bnn.ca/#clip72331

Merrill Lynch says Canada's housing market has spiralled into a "sustained turndown." BNN interviews David Wolf, chief strategist and head of Canadian economics, Merrill Lynch Canada.

I have been two open houses this weekend and am following that houses/community from last 15 months. A year before same kind of premium home was 700K. After 6 months that was 650K and today's 600K. That was sold by Jayman builder around 575K in 2006. We already in 2006 price mode.

If I give offer 580K it will accepted. That house is already in market from 65 days and 3 are on sale.

More than 100K loss in 12-15 months?

It seems to me we are declining faster than US and I will not be surprise when people own mortgages more than their house price. Lot of Americans left their home in that kind of scenario even they can afford monthly payment.
That is called foreclosure market or right time to buy.

I am still trying to understand "Real Estate, in long term appreciates"? How long term is called official long term? I call RE only timing, timing and location. Timing is more important then location.


http://www.greaterfool.ca/

CALGARY, $2.9 Million. Simply the best! Brand new, large 2 bedroom, luxury downtown condo, in Calgary. Fantastic views of the City and Rocky Mountains. Includes all modern conveniences, large patio, 4 underground parking stalls and Mercedes SL55 Convertible.

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I had originally opened the \"Buying a home\" thread which is a sticky now.

I do notice the occasional skirmishes between the home buyers and home sellers (including folks making living outta selling homes). This is natural since buying a house either means saving your hard-earned money or losing money (or bread and butter in some cases)…

In such scenario…Rahul is either a or depending on which side of the fence you are on…I am a prospective home buyer and obviously favor Rahul’s views and hopes…waiting on the sidelines to see how far it goes.

My take on the whole thing is, for the last several years the home buyers have borne the brunt of buying a home at unreasonable high prices while home sellers(and others) have made a decent profit at the cost of a home buyer.

Finally, the home buyers truly believe that, Real estate in Canada has turned the corner and hopefully the prices will come down from its lofty perch and make it affordable to one and all… ironically, cheaper homes mean more activity and more business for the real estate agents and other folks IMHO.

Good job on the timely updates, Rahul.

Seenappa(the prospective home buyer)

Hi Rahul,

I think most of ur posts apply to the calgary market. I dont see a meltdown here in GTA..

I know atleast 4 other people who have bought houses in the last month.. 3 of them in the 450K.

2 of them managed to sell their condos and move up to a house.

With high rental prices in GTA buying a house seems a much better option.. Prices may not appretiate but i dont think i will lose if hold for 3-5 years..


About 50% of the 200000 new immigrants land in GTA.. This is what is keeping the GTA economy moving and the demand for housing..

Actually most of the buyers are immigrants who have been here 2-5 years and want to move up to a house..

I know people who bought properties in end of 2006 in my area.. i still cannot find any comparable listing for the same price in my area.. So if there is a collapse, the current prices dont reflect it in GTA..


The Dude..

Sreenappa..

I think u should wait for the crash to bottom out ..LOL (is there such a thing..)

U have seen my calculation.. My friend has a similar property with a 3 bed finished basement.. he has had it rented out for 850$ plus 30% utilities since he bought the place (past 1-1/2 year)..

His 3 bedroom house costs him 300$ per month
He is laughing and making money as u wait..

And i am not a realtor mind u.. I am into IT..

Quote:

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Originally posted by seenappa

I had originally opened the \"Buying a home\" thread which is a sticky now.

I do notice the occasional skirmishes between the home buyers and home sellers (including folks making living outta selling homes). This is natural since buying a house either means saving your hard-earned money or losing money (or bread and butter in some cases)…

In such scenario…Rahul is either a or depending on which side of the fence you are on…I am a prospective home buyer and obviously favor Rahul’s views and hopes…waiting on the sidelines to see how far it goes.

My take on the whole thing is, for the last several years the home buyers have borne the brunt of buying a home at unreasonable high prices while home sellers(and others) have made a decent profit at the cost of a home buyer.

Finally, the home buyers truly believe that, Real estate in Canada has turned the corner and hopefully the prices will come down from its lofty perch and make it affordable to one and all… ironically, cheaper homes mean more activity and more business for the real estate agents and other folks IMHO.

Good job on the timely updates, Rahul.

Seenappa(the prospective home buyer)

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Canada's housing market cools in face of sharply slower economic growth

Canada's housing market lost some steam in July as the fevered pace of new home and condo construction cooled, especially in Ontario, after prices rose at their slowest pace in over six years in June in the face of sharply slower economic growth.

for complete story

http://ca.news.finance.yahoo.com/s/11082008/2/biz-finance-canada-s-housing-market-cools-face-sharply-slower.html

Economic Slump in U.S. to Worsen as Consumers Get `Squeezed'

http://www.xak.com/main/newsshow.asp?id=89785

Economic downturn in U.S. has stay-at-home moms staying home even more

http://ca.news.finance.yahoo.com/s/11082008/2/biz-finance-economic-downturn-u-s-stay-home-moms-staying.html

U.S. Federal Reserve finds deepening credit crisis as banks tighten credit

http://ca.news.finance.yahoo.com/s/11082008/2/biz-finance-u-s-federal-reserve-finds-deepening-credit-crisis.html



Cheers!

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Originally posted by dudewheresmycar

Hi Rahul,

I think most of ur posts apply to the calgary market. I dont see a meltdown here in GTA..

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Are you there?

Hi dudewheresmycar,

I agree with you and Blue Lobster(hmm..why blue??) that GTA is not seeing the housing downfall..as yet.

I have examples of friends who are desperate to sell and those who are holding out for a better market.

FriendA: Really desperate to sell his old house at a good price and buy a better house for a cheaper price(to capitalize on the current market)..How ironic..From the last couple of months he has been steadily shedding 10K on the sale price every month...

FriendB: wanted to sell his present house and buy a better house at a cheaper price. He has abandoned plans due to the current market trend and wants to wait until the odds are in his favor.

I think it all boils down to how desperate you are to sell or buy the house...

One thing is clear, many of my friends who purchased houses last year and the year before are wishing they had waited another year to purchase the house.

Seenappa

Quote:

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Originally posted by dudewheresmycar


Sreenappa..

I think u should wait for the crash to bottom out ..LOL (is there such a thing..)

U have seen my calculation.. My friend has a similar property with a 3 bed finished basement.. he has had it rented out for 850$ plus 30% utilities since he bought the place (past 1-1/2 year)..

His 3 bedroom house costs him 300$ per month
He is laughing and making money as u wait..

And i am not a realtor mind u.. I am into IT..

Quote:

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Originally posted by seenappa

I had originally opened the \\\"Buying a home\\\" thread which is a sticky now.

I do notice the occasional skirmishes between the home buyers and home sellers (including folks making living outta selling homes). This is natural since buying a house either means saving your hard-earned money or losing money (or bread and butter in some cases)…

In such scenario…Rahul is either a or depending on which side of the fence you are on…I am a prospective home buyer and obviously favor Rahul’s views and hopes…waiting on the sidelines to see how far it goes.

My take on the whole thing is, for the last several years the home buyers have borne the brunt of buying a home at unreasonable high prices while home sellers(and others) have made a decent profit at the cost of a home buyer.

Finally, the home buyers truly believe that, Real estate in Canada has turned the corner and hopefully the prices will come down from its lofty perch and make it affordable to one and all… ironically, cheaper homes mean more activity and more business for the real estate agents and other folks IMHO.

Good job on the timely updates, Rahul.

Seenappa(the prospective home buyer)

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