Real Estate

Is there a point in buying a primary residence right now?

  • Last Updated:
  • Dec 8th, 2017 9:02 am
[OP]
Newbie
Jun 3, 2017
92 posts
52 upvotes

Is there a point in buying a primary residence right now?

I've been in a market for a 2BR/2BA condo all summer long as my primary residence. I didn't manage to buy anything for obvious reasons.

The story is quite different now. With the new sold info released, I see significant drops in prices all across the board.

I do see something right now that is within my tolerable price expectation. I would like to see others' opinions on whether or not it makes sense to purchase now (the last month before the new mortgage stress test kicks in) considering:

- I am not looking for an investment. I am looking for a primary residence to replace the rental I'm in right now.
- The new stress test won't affect me (already went through the numbers with a number of lenders/brokers).
30 replies
Banned
Oct 14, 2015
264 posts
103 upvotes
Markham, ON
Condos haven't dropped in price and $$/sqft have continued to increase all year
Deal Expert
User avatar
Jan 27, 2004
39057 posts
3434 upvotes
T.O. Lotto Captain
If its for the long term. That will mitigate some of the risk. Because in the end, it is just your living arrangement.
The risk is some sort of life change that requires you to move. Like a baby, or new job, or caring for ill family.
[OP]
Newbie
Jun 3, 2017
92 posts
52 upvotes
Xfiles wrote:
Dec 6th, 2017 6:26 pm
Condos haven't dropped in price and $$/sqft have continued to increase all year
The prices sold are now public. Check them out and you'll see not only massive drops in re-listed units, but also sold for lower than listed. In my category, I see plenty of those cases.
Banned
Oct 14, 2015
264 posts
103 upvotes
Markham, ON
AnotherDesiredUsername wrote:
Dec 6th, 2017 7:43 pm
The prices sold are now public. Check them out and you'll see not only massive drops in re-listed units, but also sold for lower than listed. In my category, I see plenty of those cases.
That's all irrelevant to what you're saying. It's about $$/sqft. Listed/asking price is meaningless. It's sold/transaction price per sqft

Having information is meaningless if you dont understand what you're looking at.

This is especially true for condos as price differentials between buildings can be large in same area and transaction prices can vary a lot depending on unit in same building due to sqft

Track the sale price per sqft
Last edited by Xfiles on Dec 6th, 2017 8:57 pm, edited 2 times in total.
Newbie
Nov 5, 2005
81 posts
10 upvotes
It always make sense to buy what you can afford , like and comfortable with because the first place you buy is usually not your forever home. Things happened and you may want to up size later.

You should always get on the train so you are in the game. If prices go up you are along with the ride. If prices go down In the future the price gap to upgrade may got smaller (if all else equals and all house type loses the same %), the more expensive homes will lose more in absolute $.

More Importantly you will build equity over time and have a roof over your head.
Penalty Box
User avatar
Dec 13, 2016
2072 posts
1557 upvotes
What is "your category".

Show some examples or it's not happening.

I don't see any price drops "in my category" whatsoever.
Newbie
Oct 5, 2015
59 posts
38 upvotes
condo price has never dropped this year and keep rising every day, what is op talking about price dropping?!?! Is this illusion or ops looking at price from last year as shown on mongohousw due to a glitch?
Deal Fanatic
Feb 9, 2009
6515 posts
3621 upvotes
Another bear thread brought to you by -- haters...
Deal Fanatic
Dec 11, 2008
8656 posts
801 upvotes
Buy what you can afford, a home is not an investment nor retirement vehicle. Live in it, enjoy it and know it is an expense like renting.
Banned
Aug 28, 2017
301 posts
357 upvotes
Where are these price drops you speak off?

Detached homes are still over $1M, and condos are only going up?

Do you expect a crash? Because, it does not look like its coming...ever....
Deal Addict
Jul 3, 2007
1183 posts
1287 upvotes
Toronto
wait 6 months for the new mortgage rules to work their way through the market....theres no rush to buy right now

when the credit market tightens, prices fall ... easy money days are over, borrowing just got much tougher......dont let the RE pumpers on here try to brainwash
you on how amazing Toronto is and how its bulletproof lol.... I think the last 6 months proved it isnt.....


AnotherDesiredUsername wrote:
Dec 6th, 2017 6:14 pm
I've been in a market for a 2BR/2BA condo all summer long as my primary residence. I didn't manage to buy anything for obvious reasons.

The story is quite different now. With the new sold info released, I see significant drops in prices all across the board.

I do see something right now that is within my tolerable price expectation. I would like to see others' opinions on whether or not it makes sense to purchase now (the last month before the new mortgage stress test kicks in) considering:

- I am not looking for an investment. I am looking for a primary residence to replace the rental I'm in right now.
- The new stress test won't affect me (already went through the numbers with a number of lenders/brokers).
Deal Addict
Feb 22, 2011
4472 posts
4170 upvotes
Toronto
joepipe wrote:
Dec 7th, 2017 4:07 pm
wait 6 months for the new mortgage rules to work their way through the market....theres no rush to buy right now

when the credit market tightens, prices fall ... easy money days are over, borrowing just got much tougher......dont let the RE pumpers on here try to brainwash
you on how amazing Toronto is and how its bulletproof lol.... I think the last 6 months proved it isnt.....
Are you certain that credit tightening will have the same impact on houses, condos, semis and towns? You don't think it's at all possible it adds more renters to the market and pushes people to cheaper housing types? Both these factors could increase condos which is what OP is looking at.

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