Real Estate

Toronto home buyers are pulling out of the market. This is not a typical spring.

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  • Jun 22nd, 2022 3:38 pm
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Dec 16, 2015
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Toronto home buyers are pulling out of the market. This is not a typical spring.

To the moon
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Deal Expert
Feb 29, 2008
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Tarrana & The Ri…
Pretty much expected. Why buy now when you expect prices to come down?
Deal Addict
Jan 15, 2010
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Toronto
Into the rental market they go
Deal Addict
Mar 2, 2017
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Toronto/Markham
Being very active in the market I can tell you very few/if anybody pulled out, people are on the sidelines and waiting, likely to create another rush of buying whenever the next catalyst is.

The demand for housing didn't go away, nobody wants to buy only to be 300k upside down on a purchase by the time they close. Once we find a price floor transactions will pick up, in some areas we aren't too far off imo but the bleed out is likely to go on for a while just not as drastic as what we saw from Feb to May.
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Feb 29, 2008
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RichmondCA wrote: Being very active in the market I can tell you very few/if anybody pulled out, people are on the sidelines and waiting, likely to create another rush of buying whenever the next catalyst is.

The demand for housing didn't go away, nobody wants to buy only to be 300k upside down on a purchase by the time they close. Once we find a price floor transactions will pick up, in some areas we aren't too far off imo but the bleed out is likely to go on for a while just not as drastic as what we saw from Feb to May.
If I was a buyer I’d wait…and wait…and wait. There is no reason to rush to buy now. You’re not competing with anyone. Sit back and relax. Who wants to buy a house that may drop another 15% by the end of the year? However, some may be looking at rents and thinking it’s worth it to buy now. Probably not many.
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Mar 2, 2017
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First time home buyers are the only ones with the waiting predicament and that is entirely based on how financially secure they are and where they are looking.

For anyone else trading up or trading down it really doesn't matter as much imo, the natural hedge is still in place (provided they aren't making massive jump from condo to lux property for example).
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Jan 15, 2010
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Yea if condo prices drop some I may look to upgrade. Even though my condo has lost value from the peak, a more expensive condo will have lost more (on a relative basis). Might as well use the opportunity to get something nicer.
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Jun 11, 2005
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If this is indeed happening on a somewhat widespread basis, what happened to honouring a contract, or at a more basic level, moral compass? In a rising market, do we see sellers pulling out?
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Jan 2, 2021
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I’d be ok with a 15% drop. I mean I can’t wait till I’m old and wrinkled (or worse, HAVE A NEWBORN) to buy/move into a house. I actually want to catch it before the bottom so I don’t have to deal with bidding wars.
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Apr 20, 2016
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Media loves bearish news stories for the masses.
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Feb 29, 2008
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TwinkoStar wrote: I’d be ok with a 15% drop. I mean I can’t wait till I’m old and wrinkled (or worse, HAVE A NEWBORN) to buy/move into a house. I actually want to catch it before the bottom so I don’t have to deal with bidding wars.
Same here, but it’s going to be worse, especially in some areas like Brampton where it’s already very bad.

I’m in RHill and am prepared for 25%.
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Nov 13, 2013
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JayLove06 wrote: If I was a buyer I’d wait…and wait…and wait. There is no reason to rush to buy now. You’re not competing with anyone. Sit back and relax. Who wants to buy a house that may drop another 15% by the end of the year? However, some may be looking at rents and thinking it’s worth it to buy now. Probably not many.
But not competing with someone is a good thing. Prices have dropped and if you find desperate seller can get even lower. They could drop more even a lot but it is also very possible rate increase stall as we hit a minor recession and assuming no layoffs we see another surge as people flock to real estate as their stock portfolios are eviserated. If you renting and have a few hundred k for a downpayment and can get a house why not buy now? I mean if you are buying your third investment property you are taking a dangerous risk but primary residence is a different story.
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Aug 15, 2018
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fogetmylogin wrote: But not competing with someone is a good thing. Prices have dropped and if you find desperate seller can get even lower. They could drop more even a lot but it is also very possible rate increase stall as we hit a minor recession and assuming no layoffs we see another surge as people flock to real estate as their stock portfolios are eviserated. If you renting and have a few hundred k for a downpayment and can get a house why not buy now? I mean if you are buying your third investment property you are taking a dangerous risk but primary residence is a different story.
It's never the right time for a bear to buy. As he said it himself, they just wait ... and wait ... and wait.
Deal Expert
Feb 29, 2008
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Jokerpersona wrote: 10 years ago - prices are going up, not going to buy at the high
9 years ago - prices are going up, not going to buy at the high
8, 7, 6, 5, 4, 3, 2, 1
Today - prices are going down, not going to buy as its falling
This is why bears don't buy anything. However, I do think holding off is a good idea as we know that prices will come down. You may have that chance to finally get a detached in an area you had no chance of 6 months ago. Folk who timed the market well have won the lottery.
Deal Expert
Feb 29, 2008
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fogetmylogin wrote: But not competing with someone is a good thing. Prices have dropped and if you find desperate seller can get even lower. They could drop more even a lot but it is also very possible rate increase stall as we hit a minor recession and assuming no layoffs we see another surge as people flock to real estate as their stock portfolios are eviserated. If you renting and have a few hundred k for a downpayment and can get a house why not buy now? I mean if you are buying your third investment property you are taking a dangerous risk but primary residence is a different story.
Here's my thing, if you have $1M in your hands after selling your previous home and made a nice profit, I mean, why not wait for prices to come down more? We already know that there will be more rate hikes and we are likely headed into a recession. The trajectory for home prices is down and they're not going to turn around on a dime. There will be more pain before we hit the bottom. Cash is king right now, so what if rates go up? Prices will go down and you have the cash to reduce the amount of the mortgage. So in my example, you could be looking at houses in the $1.5M price range. Maybe a month or two down the line that 1.5M house ends up being 1.3M. In this market with less competition I'd be willing to wait. What's the rush?
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Jan 2, 2021
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Jokerpersona wrote: Saw this on reddit - it's a legitimate concern, especially as someone who sold recently. I take issue with a few quotes in that article, though.

“Is a seller really willing to pursue a buyer that has no assets? Is the seller really going to go through three years of courts only to find that they have a judgment that can't be pursued?” he pondered. “Are they really ready to put up the amount of money that it will take to pursue this to the ends of the earth if they're ableto resell? Perhaps not.”

Yes. Whether for the monetary value back, or for spite. Contracts are contracts for a reason, and not having assets isn't a viable reason to not pay what is owed.
I believe the court would order some kind of payment term. Unless the buyer is jobless or owns their own business it shouldn’t be unenforceable.
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Jan 2, 2021
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JayLove06 wrote: Here's my thing, if you have $1M in your hands after selling your previous home and made a nice profit, I mean, why not wait for prices to come down more? We already know that there will be more rate hikes and we are likely headed into a recession. The trajectory for home prices is down and they're not going to turn around on a dime. There will be more pain before we hit the bottom. Cash is king right now, so what if rates go up? Prices will go down and you have the cash to reduce the amount of the mortgage. So in my example, you could be looking at houses in the $1.5M price range. Maybe a month or two down the line that 1.5M house ends up being 1.3M. In this market with less competition I'd be willing to wait. What's the rush?
I think it’s a bet either way. RE is a little more predictable than stocks but just last year we were “so sure” rates wouldn’t go up. Right now there’s “no way” rates would come down…
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Jan 5, 2020
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RichmondCA wrote: Being very active in the market I can tell you very few/if anybody pulled out, people are on the sidelines and waiting, likely to create another rush of buying whenever the next catalyst is.

The demand for housing didn't go away, nobody wants to buy only to be 300k upside down on a purchase by the time they close. Once we find a price floor transactions will pick up, in some areas we aren't too far off imo but the bleed out is likely to go on for a while just not as drastic as what we saw from Feb to May.
Please let us know when we hit the bottom. Person With Folded Hands
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Mar 25, 2018
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RichmondCA wrote: First time home buyers are the only ones with the waiting predicament and that is entirely based on how financially secure they are and where they are looking.

For anyone else trading up or trading down it really doesn't matter as much imo, the natural hedge is still in place (provided they aren't making massive jump from condo to lux property for example).
Wondering if investors (both long term buy and hold, and short term flippers or speculators) are still active. My observation on condos seems to suggest they are still buying shoe box units at $1300/sft, or maybe these are end users young professionals as the only option for them. Realtors close to the actions please chim in.

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