Real-estate market 'almost at a crisis situation'

[JBen]

Thats kinda what Im driving at. Not kidding (especially myself) when i say we hit the lottery. Wether thats the way it worked out, or the actual house/property. It was utter insanity, utter hell on her. Fortunately, knowing how banks work, knowing how peoples emotions often (always get the better of them), know many things, I was able to escape the insanity.

See a house you like?
Well chances are theres your bidding against a young couple ( if theres a school) who are just as desperate, if not more so (if they've already lost a few times and the wife is......)

KNow that and more going in, turn everything you can to your advantage.

[skypilot]

I agree with J.
Emotion is a destructive financial advisor. Look at the actual reality of it and deal within that reality.

I broke with that 1 time in my life, and I knew I was wrong to listen, however I gave in to another's emotion and impatience. I did get my buying price but it didn't matter given the fragile market. It crashed and I ate the 100K.

It cost me close to 100K on that one deal....100k completely lost. Never again, it would have been cheaper to split the partnership than make that deal. Never again will someone else's emotion make my deals.

[trimmer21]

I agree with J.
Emotion is a destructive financial advisor. Look at the actual reality of it and deal within that reality.

I broke with that 1 time in my life, and I knew I was wrong to listen, however I gave in to another's emotion and impatience. I did get my buying price but it didn't matter given the fragile market. It crashed and I ate the 100K.

It cost me close to 100K on that one deal....100k completely lost. Never again, it would have been cheaper to split the partnership than make that deal. Never again will someone else's emotion make my deals.

You're not alone. I made a mistake like that 12 years ago. It's taken two deals and all this time to recoup and just break even,not including the over-inflated real estate fiasco that's going on,today. If we decided to sell our house,right now,we'd more than triple our investment,but,like mentioned before,we'd need to buy another house,so,we wouldn't be any further ahead,especially,if this bubble bursts in the next year or so,like people smarter than me think it will. Nope,we're sittin' tight for now. Lesson learned.

[skypilot]

Not a bad idea to hold pat and wait on the crash if you like what/where you are, as now the housing greed has extended into the rental pricing market.

It's not as simple now to sell, turn a quick profit, and just rent until the bust fertilizes the start of the next market run-up.

[JBen]

Good call Trimmer. Way too many moving parts.

There's all kinds "out there" on ohysological behaviour. Affects everything from investing, to planning, buying/selling houses. At its simplest...OMG the markets crashing...sell...and it snowballs. It's been established that Canadians are 3 or 5 times more bothered and worried about a 25% loss, than they are happy about a 25% gain.

Unfortunately many people don't have the "choice". Be they young families trying find places to put down roots, or the 7 in 10 people for whom the dream of white picket fences is ending. Or simply people who have to relocate for work reasons, whether that's a layoff, or simply having to move across town for a new opportunity/transfer.

Couple those things, with other things and

It's a fine mess.

Most of my post have been "aimed" (?) at anyone going into it for whatever reason.

Do all you can to get any edge you can. If you don't "need" to be close to a good school, stay far away, let the 20-60 other people beat each other up for it. The husbands wives will be everybit as stressed out as the next persons. There's only 1 winner and for the other "59" bidders. It's an utter waste of a week, and they have to reset, start from scratch....again. For the
3rd, 5th, 10th time.

[skypilot]

Remember anytime someone buys a higher priced house that in and of itself drives the average price of housing up. No migration, no population change, no reason for the prices to be higher other than you bought a more expensive house. NOTHING ELSE. Now multiply that 10 million times.

More bubbles than Lawrence Welk Show and nothing underpinning that housing market other than speculation.

Low loan rates and high income are addicting to the housing market, but sooner or later the market adjusts itself or high inflation and high loan rates bite the most vulnerable.

[manyo]

Sounds like both Canada and the US will continue raising interest rates, which might help slow things down. Until things are nice and ready, I'll be renting and waiting.

[Hunter John]

Parents just listed their house in Mississauga for $975,000 and the agent figures they will get more than the asking price as it is a desirable area with a school literally in the back yard. House backs on to parkland with the school about 500 yards from the back of the fence, used to walk it everyday and walk home for lunch, watch the flinstones and then walk back for the afternoon.
Glad I am not starting out now as I am not sure how far out my wife and I would have to go to find affordable housing. when we were first looking 16 years ago we stumbled onto our current home in Ancaster.Wife works in Burlington and I work in Mississauga so its not a horrible commute. We got the house for $167,000.LOL , Its just over a quarter acre in the older part of town on a corner lot with an elementary school at the end of the street.
In the last year we have seen houses on the street and in the neighborhood go anywhere between 5 - 625,000. some of these homes are being bought by builders/investors being torn down and replaced with McMansion type homes that sell between 1.5 Mil -2.2 Mil.
we talked it over recently and decided we are not going anywhere.We have done the usual upgrades, windows, kitchen one bathroom, furnace/air and I am in the process of doing the 2nd bathroom. It aint a palace by any stretch but it is our home and we will likely stay until retirement in about 13 -15 years from now.

[Species8472]

Parents just listed their house in Mississauga for $975,000 and the agent figures they will get more than the asking price as it is a desirable area with a school literally in the back yard. House backs on to parkland with the school about 500 yards from the back of the fence, used to walk it everyday and walk home for lunch, watch the flinstones and then walk back for the afternoon.
Glad I am not starting out now as I am not sure how far out my wife and I would have to go to find affordable housing. when we were first looking 16 years ago we stumbled onto our current home in Ancaster.Wife works in Burlington and I work in Mississauga so its not a horrible commute. We got the house for $167,000.LOL , Its just over a quarter acre in the older part of town on a corner lot with an elementary school at the end of the street.
In the last year we have seen houses on the street and in the neighborhood go anywhere between 5 - 625,000. some of these homes are being bought by builders/investors being torn down and replaced with McMansion type homes that sell between 1.5 Mil -2.2 Mil.
we talked it over recently and decided we are not going anywhere.We have done the usual upgrades, windows, kitchen one bathroom, furnace/air and I am in the process of doing the 2nd bathroom. It aint a palace by any stretch but it is our home and we will likely stay until retirement in about 13 -15 years from now.

Nice digs HJ. Looks like you do better job on your lawn than I do. LOL.

[trimmer21]

I grew up in a neighborhood like that in Peterborough. Those houses,now,are still around $350K,but,they're going up fast as Toronto folks retire and sell older homes for $750K + and move there. What absolutely floors me is the banks lending younger buyers two and three mortgages to get into the market. Some of the terms are 50-60 years,hoping the equity builds fast enough to offset the liability. That's insanity,right there. Soon,they'd have a better chance at a Casino.