Real Estate

What if the crash never comes and this becomes the norm?

  • Last Updated:
  • Feb 28th, 2017 12:48 pm
[OP]
Deal Addict
Sep 5, 2010
2249 posts
333 upvotes
Toronto

What if the crash never comes and this becomes the norm?

What if the crash never comes and this becomes the norm? Kinda like NY, Tokyo and other cities with expensive real estate What will be the implications for the economy and society overall? Will wages start rising to make up for high prices of real estate and in turn lead to higher prices for everything else?
My Signature is empty. My signature space is not for sale. You may not contact me to advertise your RFD-related activities here. I repeat, this signature-space is not for sale, unless it is a ......day
195 replies
Banned
Sep 3, 2016
122 posts
57 upvotes
Ask anybody on earth if they heard of NY or Tokyo and they'll say yes. Ask the same about Toronto and rarely anybody knows where it is. I don't know if you've been watching the financial news lately but Canada ain't doing that great. Provinces like Ontario are in shitload of debt, and it seems like the feds will flow suit. So sit back and relax. Some kind of crash will come. If anybody here thinks that a 20% YoY increase is sustainable, then they are delusional.
Deal Fanatic
Dec 5, 2009
5602 posts
3365 upvotes
Oh a correction is coming, it's just a matter of when.
[OP]
Deal Addict
Sep 5, 2010
2249 posts
333 upvotes
Toronto
fdl wrote: Oh a correction is coming, it's just a matter of when.
Ok but haven't we been saying that for close to 10 years now ? If the crash happens in 2030 for example, does it really count by then?
My Signature is empty. My signature space is not for sale. You may not contact me to advertise your RFD-related activities here. I repeat, this signature-space is not for sale, unless it is a ......day
Deal Fanatic
Dec 5, 2009
5602 posts
3365 upvotes
By the way, "New Paradigm" thinking is generally something that occurs at the peak of a bubble.

Image
Penalty Box
Jan 13, 2017
456 posts
364 upvotes
I firmly believe the landscape has changed since 2008. more and more people view stock market as not trust worthy, and pour money into the housing market cause at the end of the day you still need a place to sleep.
I believe as long as Canada takes in 300k/year with 150k of them come to GTA in with $$$, how can this market crash?

Historical big crashes and lessons are in some ways completely meaningless, people's view and investment habits change with time. Also Statscan report today just showed more and more people lives in big cities.
Deal Fanatic
Dec 5, 2009
5602 posts
3365 upvotes
Woodbridge905 wrote: Ok but haven't we been saying that for close to 10 years now ? If the crash happens in 2030 for example, does it really count by then?
Depends how big it is and when you bought.
Deal Fanatic
Mar 15, 2005
5422 posts
962 upvotes
bluedealz wrote: Ask anybody on earth if they heard of NY or Tokyo and they'll say yes. Ask the same about Toronto and rarely anybody knows where it is. I don't know if you've been watching the financial news lately but Canada ain't doing that great. Provinces like Ontario are in shitload of debt, and it seems like the feds will flow suit. So sit back and relax. Some kind of crash will come. If anybody here thinks that a 20% YoY increase is sustainable, then they are delusional.
Canada is driven off immigration, and most of the immigrants that come to Canada want to live in Toronto (or Montreal, Vancaouver).

Sure, it doesn't hold the global cachet of a New York or London, but in a micro market sense the demand is blazing hot.
Deal Addict
Mar 27, 2004
4627 posts
2274 upvotes
Toronto
A semi in my area, two years ago sold for mid 500s, today they are costing 900k
This is in Cornell area of Markham. I guess its bound to correct or level off?
Full-time Realtor
Deal Addict
Sep 30, 2008
1277 posts
310 upvotes
Never say never. I do believe that the correction will come, and it is just when. I personally went thru a few bubbles (real estate bubble in alberta in 1980, and the stock mkt bubbles of 2000 and 2008) and the scars to prove it. My friend, be afraid when others are greedy, and be greedy when others are afraid.

CANADA - THE MOST VALUED HOUSING MARKET IN THE WORLD?
Image

UBS - THE VANCOUVER REAL ESTATE HAS THE HIGHEST BUBBLE RISK IN THE WORLD
Image
Last edited by jedi1648 on Feb 8th, 2017 10:12 pm, edited 2 times in total.
Banned
Oct 17, 2016
378 posts
131 upvotes
Oshawa, Ontario
Woodbridge905 wrote: What if the crash never comes and this becomes the norm? Kinda like NY, Tokyo and other cities with expensive real estate What will be the implications for the economy and society overall? Will wages start rising to make up for high prices of real estate and in turn lead to higher prices for everything else?
Then too bad so sad.

Either you buy now, or rent forever.
Mitsubishi Lancer RULES.
Penalty Box
Dec 27, 2013
8003 posts
3986 upvotes
Toronto
toronto is not going to crash. I firmly believe this. maybe some stagnation, but no crash.

the outskirts of Toronto, maybe that's a different question. If you look at Toronto core, it will not crash.... Houses will not crash. The only risk I see is in Condo's.. BUt only in condo complexes outside of Toronto core. There is no market risk for condos IN toronto.

there will be no crash. good luck.
Member
Nov 24, 2016
346 posts
370 upvotes
^^^ Those charts will need to be updated in a couple of months (already old tbh). Vancouver detached prices are starting to get back under control (b/c of the foreign buyer's tax). Meanwhile London etc... are all continuing to go up. Vancouver's detached market will probably stabilize around the 1 million mark (benchmark price for detached).
[OP]
Deal Addict
Sep 5, 2010
2249 posts
333 upvotes
Toronto
MMMPower wrote: I firmly believe the landscape has changed since 2008. more and more people view stock market as not trust worthy, and pour money into the housing market cause at the end of the day you still need a place to sleep.
I believe as long as Canada takes in 300k/year with 150k of them come to GTA in with $$$, how can this market crash?

Historical big crashes and lessons are in some ways completely meaningless, people's view and investment habits change with time. Also Statscan report today just showed more and more people lives in big cities.
Well said! Tgisis what I mean exactly. How can it crash when there is high demand? Even if the economy doesn't improve, there is still enough people, immigrants and investors to keep the demand strong.

Sure, 20% YOY may not continue, but there won't be a crash either....
My Signature is empty. My signature space is not for sale. You may not contact me to advertise your RFD-related activities here. I repeat, this signature-space is not for sale, unless it is a ......day
Deal Addict
Mar 10, 2011
2236 posts
347 upvotes
Toronto
Speaking about the GTA, at some point we may see a zero price appreciation for a number of years or if a recession occurs, a small reduction maybe 5-7%. Immigration levels are high with no end in site as well as migration to the GTA within Canada as well. The current price levels are the new norm, but dont expect them to go up at the rate that we have seen in recent years.

Top