Real Estate

Did we just hit the peak of the Toronto RE bubble?

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  • Feb 12th, 2019 3:03 pm
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Deal Guru
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Mar 31, 2008
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fdl wrote:
Apr 26th, 2017 10:07 am
Can't believe this is the middle of the spring market. Things seems paralyzed out there.

I mean most of the houses that do sell are still getting good prices in general, BUT the volume of sales seems really really slow for spring, and there is lots and lots of inventory is just sitting with no action. Lots of termination and resistings too.

All anecdotal of course, but Curious as to what others are seeing in their areas.
That's because prices haven't adjusted to supply. Demand has always been there but sellers have wrongfully assumed there was a parallel shift upwards in the supply curve when a large part of it was a movement along the existing supply curve.
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Feb 13, 2017
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fdl wrote:
Apr 26th, 2017 10:07 am
Can't believe this is the middle of the spring market. Things seems paralyzed out there.

I mean most of the houses that do sell are still getting good prices in general, BUT the volume of sales seems really really slow for spring, and there is lots and lots of inventory is just sitting with no action. Lots of termination and resistings too.

All anecdotal of course, but Curious as to what others are seeing in their areas.
Same thing we saw in Vancouver. Huge decrease in actual sales, but prices barely budged. Now prices and sales are picking back up in Van.
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BinaryJay wrote:
Apr 25th, 2017 3:31 pm
Oh yes, while he was there he had rotting leaking windows... the condo spent the money to fix them alright, some parts of the windows were replaced and all the rotting frames around them were not touched. If you are responsible for this stuff, you'll probably have things done properly for your money at least... well, most people would. For myself I am absolutely sure that my dollars gone to maintenance of my property get spent much better than if someone else were in charge of it. I will also happily mow my own lawn and shovel my own snow until I'm too old to do it any more, I get to make that choice in my own detached home.

So yes, condo fees do go towards stuff that everybody eventually has to deal with but it is not always spent wisely or on things that you would choose if you were the only person responsible for it.
Also, as a house owner, if you have (or want to learn) handy skills, you could do some of your projects on your own and save $. That option doesn't really work towards lowering condo maintenance fees.
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Well, after that breaking news of +33% YoY shocker...
a number of buyers have given up + a sudden surge of sellers willing to sell.

This will balance itself out in the next 6-8 months.
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Dec 1, 2008
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GiOBoY wrote:
Apr 26th, 2017 10:47 am
Well, after that breaking news of +33% YoY shocker...
a number of buyers have given up + a sudden surge of sellers willing to sell.

This will balance itself out in the next 6-8 months.
Plus after 16 measures lot of buyers waiting for the market to dip. If inventory keep piling up dip is very likely. Question is by how much
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Oct 19, 2016
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Agreed, I work at a major toronto real estate brokerage. Seems like the sales volume has decreased significantly over the last 2 weeks.

The selling prices Im noticing have weakened a bit but by little..
fdl wrote:
Apr 26th, 2017 10:07 am
Can't believe this is the middle of the spring market. Things seems paralyzed out there.

I mean most of the houses that do sell are still getting good prices in general, BUT the volume of sales seems really really slow for spring, and there is lots and lots of inventory is just sitting with no action. Lots of termination and resistings too.

All anecdotal of course, but Curious as to what others are seeing in their areas.
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mrtrump wrote:
Apr 26th, 2017 1:29 pm
Agreed, I work at a major toronto real estate brokerage. Seems like the sales volume has decreased significantly over the last 2 weeks.

The selling prices Im noticing have weakened a bit but by little..
Sellers are holding out. Many put it up after seeing what happened in February and March. The main thing is people don't really have to sell as the economy is still roaring. I have a friend in banking and they can't find enough qualified people to fill 100K+ jobs. With the US economy picking up steam, low dollar, the party here is really set to begin.
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spdewan wrote:
Apr 26th, 2017 1:09 pm
Plus after 16 measures lot of buyers waiting for the market to dip. If inventory keep piling up dip is very likely. Question is by how much
Not much is my prediction - At most 10%-20%.
Our cheap dollar keeps getting cheaper + low interest rates looks like it's not going anywhere for a while with these trade war talks between the US and Canada.

Sellers are testing the market -
they can back out and simply live there longer if they wish.
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GiOBoY wrote:
Apr 26th, 2017 2:08 pm
Not much is my prediction - At most 10%-20%.
Our cheap dollar keeps getting cheaper + low interest rates looks like it's not going anywhere for a while with these trade war talks between the US and Canada.

Sellers are testing the market -
they can back out and simply live there longer if they wish.
I know of a few cases where they bought. Because just a month or two ago, the mantra was "buy first before you sell because the sale is guaranteed at that price but you don't know what you're going to be able to get so buy first then sell". Problem is, if you bought at the peak time, and listed even 2 weeks later, you might be getting less then you expected for the sell.
[OP]
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People who bought aggressively (bidding war, bully offer, etc) in Feb/Mar and need to sell now could be in a tough spot.
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fdl wrote:
Apr 26th, 2017 3:14 pm
People who bought aggressively (bidding war, bully offer, etc) in Feb/Mar and need to sell now could be in a tough spot.
Who buys and sells after 2 months? Vancouver also had a softening and it's already picking up.
[OP]
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WinterSleep wrote:
Apr 26th, 2017 3:40 pm
Who buys and sells after 2 months? Vancouver also had a softening and it's already picking up.
Maybe Not 2 months, but needing 3-4 weeks to get ready to list is pretty common. Could be more depending on the closing date of the purchase. A lot has changed in the last month.

Vancouver is picking up after 6 months.
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fdl wrote:
Apr 26th, 2017 3:14 pm
People who bought aggressively (bidding war, bully offer, etc) in Feb/Mar and need to sell now could be in a tough spot.
If you need to sell 2 months after you buy, you have more serious issues than losing 2% off your original purchase.....like capital gains tax for example :)
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fdl wrote:
Apr 26th, 2017 3:42 pm
Maybe Not 2 months, but needing 3-4 weeks to get ready to list is pretty common. Could be more depending on the closing date of the purchase. A lot has changed in the last month.
They would have been ready to list before they started looking at properties to buy. So what would have happened is they'd buy a place on say Monday, and list in Tuesday, and have it sold by the following Monday, the offer presentation night.
fdl wrote:
Apr 26th, 2017 3:42 pm
Vancouver is picking up after 6 months.




Yes there was a wide-spread fear of what the effect of this FBT was going to be. So the market came to a halt. Now that the fear has subsided, it's moving again. Toronto will be looking at Vancouver, and taking the lesson that the effect is not as catastrophic and feared originally. Remeber, Vancouverians didn't have the example of another city in Canada to predict what will happen. As well, the economy is far stronger and diverse in Toronto, and most people will agree foreign buyers are a far smaller ratio when compared to GVA.
Last edited by WinterSleep on Apr 26th, 2017 3:48 pm, edited 2 times in total.
[OP]
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Sure. Everything is so easy. Everything is fine. There are some listings that have already been sitting for a month. I'm sur if they bought last month they have no stress at all right now.

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