Real Estate

Did we just hit the bottom of the Toronto RE correction?

  • Last Updated:
  • Oct 10th, 2017 4:33 pm
Deal Addict
Feb 2, 2014
3956 posts
766 upvotes
Toronto
rjg4235 wrote:
Aug 12th, 2017 4:20 pm
This seems pretty rational to me. Q1 was definitely out of control but I don't think this summer lull is the new norm either.

I think the lack in sales is due to uncertainty, I don't think the underlying demand or desire to own a home in Toronto has changed.
It's Economic 101 right RJP235?

Low supply, high demand will lead to high prices. High prices leads to higher supply and lower demand. This then leads to a balanced market.

When reviewing all the stats, this is what I see happening right now. Of course, the Affordable Housing Plan rules are also playing a minor factor as well.
Kevin Somnauth, CFA
Mortgage Agent and Real Estate Sales Representative
Deal Addict
Sep 5, 2009
2503 posts
726 upvotes
Nope, bottom hasn't been reached yet.

This listing include a 2016 BMW 328i: https://www.realtor.ca/Residential/Sing ... Brownridge
Saw it posted on Facebook today.

Sellers are still feeling desperate.
Current cell plans:
Fido $15 3gb
Public Mobile $38/4gb
Koodo flaming hot 6s deal

Affordable wireless is possible, just takes some creativity.
Temp. Banned
Feb 13, 2017
702 posts
814 upvotes
dgnr8 wrote:
Aug 12th, 2017 6:54 pm
Nope, bottom hasn't been reached yet.

This listing include a 2016 BMW 328i: https://www.realtor.ca/Residential/Sing ... Brownridge
Saw it posted on Facebook today.

Sellers are still feeling desperate.
List price $1.3M for an outdated average detached home on a damn 33x100 lot LOL...yes...so desperate lol.
Deal Addict
Jul 3, 2011
4336 posts
1612 upvotes
Thornhill
Before the first spade was even in the ground they were having difficulty selling the $1 million+ units in Shangri-la and offered a brand new Mercedes plus a hefty fee to buyer agents.

Other builders were offering cruises, tens of thousands off, 5-8% realtor fees and a whole plethora of incentives.

I really thought that signalled a nasty turn in the market.

All it did was put huge smiles and massive profits to the eventual buyers and their Realtors who capitalized and bought because they were in the market.
dgnr8 wrote:
Aug 12th, 2017 6:54 pm
Nope, bottom hasn't been reached yet.

This listing include a 2016 BMW 328i: https://www.realtor.ca/Residential/Sing ... Brownridge
Saw it posted on Facebook today.

Sellers are still feeling desperate.
Sr. Member
Aug 19, 2016
724 posts
252 upvotes
cartfan123 wrote:
Aug 12th, 2017 10:03 pm
August buyers demand 5 series BWM now.
Buy a house, and get a 5 series BMW free? Where do I sign up?
[OP]
Deal Addict
Feb 22, 2011
1667 posts
1464 upvotes
Toronto
crocp8 wrote:
Aug 12th, 2017 7:08 pm
List price $1.3M for an outdated average detached home on a damn 33x100 lot LOL...yes...so desperate lol.
It's been so high for so long people don't remember what desperate looks like anymore.
Temp. Banned
Feb 13, 2017
702 posts
814 upvotes
rjg4235 wrote:
Aug 13th, 2017 8:08 am
It's been so high for so long people don't remember what desperate looks like anymore.
Exactly...$1.3 is the norm now. Will it sell in a day with 35 bids....no. Will it sell between $1.2m and asking within a month....probably. Either way, If you could not afford at peak when it would have been $1.5M, you cannot afford now when its $1.3M. And it it falls to $1.1M by any chance, you still cannot afford.

The days of buying detached homes on a decent salary are longggggg gone!
[OP]
Deal Addict
Feb 22, 2011
1667 posts
1464 upvotes
Toronto
crocp8 wrote:
Aug 13th, 2017 9:05 am
Exactly...$1.3 is the norm now. Will it sell in a day with 35 bids....no. Will it sell between $1.2m and asking within a month....probably. Either way, If you could not afford at peak when it would have been $1.5M, you cannot afford now when its $1.3M. And it it falls to $1.1M by any chance, you still cannot afford.

The days of buying detached homes on a decent salary are longggggg gone!
The slow down also effected bank lending so people will qualify for less. People looking to enter the market may find it harder to buy now than before.
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User avatar
Sep 8, 2007
4713 posts
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Way Out of GTA
crocp8 wrote:
Aug 13th, 2017 9:05 am
Exactly...$1.3 is the norm now. Will it sell in a day with 35 bids....no. Will it sell between $1.2m and asking within a month....probably. Either way, If you could not afford at peak when it would have been $1.5M, you cannot afford now when its $1.3M. And it it falls to $1.1M by any chance, you still cannot afford.

The days of buying detached homes on a decent salary are longggggg gone!
This house was posted 20 days ago on kijiji by the realtor. At that time it didn't have the car thrown in. So that might be a recent perk to drum up some excitement. Considering there's builders trying to sell townhouses in North Ajax for a similar price (Stone Haven) the price on this (detached in Vaughn) looks a downright steal.

Hard to know where prices should be right now given the lack of data and volume. One or two sales in an area can skew the avg price vastly higher or lower.

https://www.kijiji.ca/v-house-for-sale/ ... 1258371443
Sr. Member
Jul 14, 2002
967 posts
284 upvotes
rjg4235 wrote:
Aug 13th, 2017 9:27 am
The slow down also effected bank lending so people will qualify for less. People looking to enter the market may find it harder to buy now than before.
very true. my family relative's mortgage renewal already went up 0.40% even with negotiating among the multiple big banks. and they are threatening to increase it even more.
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Feb 9, 2009
4341 posts
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dantey wrote:
Aug 13th, 2017 5:07 pm
very true. my family relative's mortgage renewal already went up 0.40% even with negotiating among the multiple big banks. and they are threatening to increase it even more.
Is this a 5 year?... cause if so 5 years ago I guarantee the rate was at or even higher unless they got an amazing special rate...
Deal Addict
Nov 27, 2006
2116 posts
387 upvotes
Toronto
cartfan123 wrote:
Aug 13th, 2017 3:09 pm
This house was posted 20 days ago on kijiji by the realtor. At that time it didn't have the car thrown in. So that might be a recent perk to drum up some excitement. Considering there's builders trying to sell townhouses in North Ajax for a similar price (Stone Haven) the price on this (detached in Vaughn) looks a downright steal.

Hard to know where prices should be right now given the lack of data and volume. One or two sales in an area can skew the avg price vastly higher or lower.

https://www.kijiji.ca/v-house-for-sale/ ... 1258371443
ever notice how every add "RARELY OFFERED"

lol so anoying. I hate realtor copy, they suck.

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