Real Estate

2008 Financial Crisis vs RE in Toronto today, watch this trailer

  • Last Updated:
  • Mar 9th, 2019 9:31 pm
[OP]
Deal Addict
Jul 3, 2007
1680 posts
1729 upvotes
Toronto

2008 Financial Crisis vs RE in Toronto today, watch this trailer

I watched this HBO special the other day, you need that channel to find it...... it was really fascinating to see the comparisons of that RE market , to what we have going on
today in Toronto, Vancouver with the top being hit in 2017 and now a decline in prices since then, except for condos in Toronto, which brings some very similar comparisons and quotes.... "people werent buying homes to live in , they were speculating"

i.e. the condo market speculation in Toronto and pre-cons selling for $1200 - $1500 a sq ft not closing for another 3 or 4 years...it will be interesting to see how this plays out....



https://www.hbo.com/vice/special-report ... ial-crisis
5 replies
Deal Fanatic
Feb 22, 2011
5840 posts
5518 upvotes
Toronto
You have been posting this stuff for like 5 years, at what point do you just admit you were wrong about condos?
Deal Fanatic
Feb 29, 2008
8101 posts
3157 upvotes
I'll check it out. Remember, the US housing market was largely affected due mainly too the funny mortgages banks were giving out. Loans to people who had no jobs. 0 down mortgages. Our lending is much stricter over here. Not to say the market won't crash. I just don't anticipate a end of days meltdown.

As far as precons selling 1200-1500 sqft.....

that's really for the nicer projects. You can still find decent projects priced lower than that. I do't really track PPSF too much since condos are smaller now and built more efficiantly (space). So a condo that is 450 sqft may actually feel bigger than a condo that's 550 sqft. Remove a hallway and that's a 50 sqft difference. Regardless, I was hearing the same thing at 500psqft. I thought prices were insane then.....and now look.
Deal Addict
Jan 26, 2016
1259 posts
1001 upvotes
Toronto, ON
joepipe wrote:
Mar 9th, 2019 11:41 am
I watched this HBO special the other day, you need that channel to find it...... it was really fascinating to see the comparisons of that RE market , to what we have going on
today in Toronto, Vancouver with the top being hit in 2017 and now a decline in prices since then, except for condos in Toronto, which brings some very similar comparisons and quotes.... "people werent buying homes to live in , they were speculating"

i.e. the condo market speculation in Toronto and pre-cons selling for $1200 - $1500 a sq ft not closing for another 3 or 4 years...it will be interesting to see how this plays out....
I don't see the comparison... Why not compare the RE to other bubble, like dot com or any other similar events?

Don't you think it might be a tad too easy to look into the past for clues into the future? The fact is the government and regulators continually adjust market to affect outcome.

It seems to me demand is solid especially shown through rents and employment stats.. So what is there to worry about? As government has shown, they're willing to reduce rates drastically to avoid a crash as they did in 2008 in Canada, along with 40 year mortgages.

Gone are the days of gold backed money. It's all politically driven now.
Member
Mar 13, 2017
499 posts
634 upvotes
joepipe wrote:
Mar 9th, 2019 11:41 am
I watched this HBO special the other day, you need that channel to find it...... it was really fascinating to see the comparisons of that RE market , to what we have going on
today in Toronto, Vancouver with the top being hit in 2017 and now a decline in prices since then, except for condos in Toronto, which brings some very similar comparisons and quotes.... "people werent buying homes to live in , they were speculating"

i.e. the condo market speculation in Toronto and pre-cons selling for $1200 - $1500 a sq ft not closing for another 3 or 4 years...it will be interesting to see how this plays out....



https://www.hbo.com/vice/special-report ... ial-crisis
We've gone down this comparison road so many times before.
There are so many dynamic differences I get exhausted thinking about going into another long winded thread about them.

Gov't intervention killed the momentum of GTA realty. Further gov't intervention shifted would be detached buyers into shoeboxes, turned condo buyers into renters, and displaced habitual renters into poor conditions.

No intervention, and constant fueling of credit access created the breakdown of 2008.

I'll say it again; it's a very romantic notion to feel like you've identified the next Big Short. The only Big Short happening in the GTA is a shortage of rental inventory.

As many bears that I know, there's an organic attraction to that era. What I will say, as someone that was in the thick of it all during that time - no mater how bad it looked in the movie or documentary; it was worse. Much worse. It often gets compared to the Great Depression; I would argue the stain it left on America was much worse. The distrust that was created for Gov't & banking as a result is transitioning to the next generation of kids whose parents lost everything.
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Dec 13, 2016
2966 posts
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It's always the untold story with these people.

Cue in dramatic music for the fear of switching to Kardashians

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