Real-estate market 'almost at a crisis situation'

[fratri]

Thanks John but I lost it. It went for 102 over list. Back to drawing board.

That is too bad you did not get it... I hope something falls in your lap soon.
Best of luck

[Species8472]

Thanks John but I lost it. It went for 102 over list. Back to drawing board.

Unfortunate outcome. Hopefully you connect on something soon.

[Hunter John]

That sucks Rick.

[JBen]

"Orphans funeral", Lol R.

"Meanwhile in the suburbs, which cover the 905 area code, the average detached home price soared 35 per cent to $1.11 million from last February, the fastest growth of any housing type in the greater Toronto area."

The west is Saturated, to North its to Barrie, and the floodgates have been opened East.
In a couple years time the 407 will link up with the 115, and Go Trains service out to Newcastle (conveniently linked to the 115).

Courtesy of everyone in Ontario.
What a nice world it would be "if" the Gta wasn't so self centred. Don't get me wrong, these things and others are needed, and are good. But its a ridiculous 1 way street, and for those people who have no intententions of selling but rather hoping they can keep their jobs for the next 5-15 years, then cash in.
Well its "everyone" else thats "paid for it", literally ( Tax money) and figuratively ( taxation, Hydro charges, no economic growth...aka jobs).

No bloody wonder both the GTA and Ottawa vote red....
******

"supply crunch"
Interesting they are borrowing financial terminology, but yep that is "likely" ( room for doubt) the main reason. What is a "supply" crunch or "credit" crunch. A liquidity "crunch", not enough liquidity, its like daming a river, or cutting off the flow of oil, or even cutting off the flow of blood by clamping an artery............................

TREB
Everyone notice how they are washing their hands....
Nope, not our fault.

The Banks etc are worried, and likely rightfully so. If it goes south and it might, its unlikely capital reserves and write downs will get them out. Every institution out there will think about survival, (How much are they borrowing from us" ) cut off the flow of money, restrict liquidity, and if just one wobbles...............

*****

Rick really wish I knew what what to tell you, say. and I know you don't need "this" on top of everything else.

[fishermccann]

Was talking to my son in law in Windsor on the weekend, we hope to moving there soon and the houses are starting to rise in price there as well, most places are now Multiply offer, what he mentioned was working in downtown Toronto and buying a house in Windsor, nices houses going for $350, - $400, range and then flying back and forth every day with Porter arilines. he said it was about a 1/2 hour flight and that they had
packages that went for $20,000. for the year for your flights. might be better than fighting the traffic to Oakville, Burlington and living in that 1.2 mil home that is the same size. Sure these are options some people are going to have to face in the coming days. anyone who bought a house in the mid to late 90's probably made a GREAT return on their investment. know we would never have made this much money investing anywhere else. Good Luck out there. Scary time to be buying a place in the GTA.

Bought my present house in 1998 for 220 thousand , houses on our street go for over 1.2 million now. I don't know I will have to ask JBen , but is investing 200 thousand to make 1 mill in 18 years a good return on investment. Over that time would any other investment have increased as much as real estate?

[mosquito]

Thanks John but I lost it. It went for 102 over list. Back to drawing board.

In Brampton we have insanity rules in the market, 102 over is low, first of the year we started looking at an investment rental property and the one I have seen went for $250,000 over asking. Seriously, we put in an offer 50 over and it went 200 higher than that. Houses we have looked at that were only 2 or 3 days old had 30 or 40 cards on the table and even though it said they weren't accepting offers until a certain date they took "bully offers" and were sold before that day. Alot seem to be clamouring for those that can rent out the basement especially (or rent as 2,upper and bsmt and some 3 ... the +250 mentioned above did) units. We went to our max to see if there was as much demand and the one last night at over a dozen offers, we told the agent go home, don't even try! Each offer seems to be about 5 or 10K, so start at ask, add 10 * $5K and it was still early so probably more coming in... never mind! To quote the real estate again "INSANITY" and a 1.5% GIC is looking like a good idea.


Brampton home draws 532 showings and 82 offers
In hot Toronto-area housing market, it sold for more than $200K over its asking price
http://www.cbc.ca/news/canada/toront...fers-1.3974147

Oh that we had got to our savings threshold last year (Hint: pay mortgage as fast as possible, once paid off keep paying 80+% as "rent" into a savings only account).... the real estate agent has pointed out houses sold in June now asking for $100,000 over what they were bought for and selling for over that asking price.



OH and good luck, maybe see if your agent will do a "bully" offer or watch for ones that just came on and the offer date is close (didn't work for us though).... and GOOD LUCK!!! We are going to take the agent out for a nice lunch (friend of ours daughter) and tell her never mind.

[JBen]

Lucky you G.
You were born at the right time, in the right place. But as I've said, pointed out. Most of that appreciation, you can thank the tax payers of Ontario for. 30 years ago, Scarborough was little more than a sleepy burb.I know I remember driving across Steeles and it being farmland, or taking Kingston road to the 401 and.......


Investments in infrastructure, job creation, ( aren't they still fighting for TTC fundings and subway lines).........Do you think for example Fenelon falls, can rely on their house to retire comfortably......
Shame about the rest of the people, and today its biting a lot of people. Whether its people caught in it for no fault of their own like Rick or our children.....

I could easily be wrong, don't quite me, but I think the stock markets have a historical trend of about 5-6% appreciation after inflation since 1980. So a simple calculation might show a 200-300% return. Whereas housing might be up 900%.

Now I know you have argued long and hard about the rich not paying their fair share.
Those stock market gains are subject to capital gain tax on 50%.

Your house being a primary residence is not.
Im sure when you cash in that million dollar windfall ( thanks mostly to the tax payers of Ontario) your going to argue you should hand over say $250,000 (50% of 50%) as a kind of thank you and pay back.

[JoePa]

Wow what a world of difference - down here a house may be on the market for a year or more - the seller usually has to reduce the price and the buyer will offer less than listed - sounds like you are real lucky if you already own a home in one of those high priced areas - builders must be having a field day with such a high demand for houses and construction workers must be really busy - if your young and just starting out maybe you want to consider moving to the U.S -

[mosquito]

Joe be quiet.... we don't want the talented and smart one leaving Canada! Someone has to help pay the debt our PM Zoolander is running up. These idiots are now projecting the budget will balance itself in about 40 years.

Alot of the properties we have looked at are two rental units houses and many have been owned by real estate agents. They are locking in their profits so I suspect that we will see a tipping point at sometime, it may be a drop, a stop or a crash but who knows how much higher the juggernaut will go before the steam (price vs interest vs peoples funds (including jobs)) has a fundamental problem. Also with the interest in rental type houses there may be a limit on the number of people looking for rental units. The increase in immigration is one thing and the refugees having one years funding then getting the fed boot may be significant factors on demand.

[Species8472]

Bought my present house in 1998 for 220 thousand , houses on our street go for over 1.2 million now. I don't know I will have to ask JBen , but is investing 200 thousand to make 1 mill in 18 years a good return on investment. Over that time would any other investment have increased as much as real estate?

If this is your primary residence than it is only a good investment if when you sell you downsize significantly or move to an area with lower prices. Otherwise you will just have to use the money to pay for what ever place you move to. Alternatively if you die and your kids have their own places than they can sell and reap the benefits.