It's being bandied about as a possible side effect of all the extra cash bring pumped out. How you define hyper needs to be asked.
Housing and Condos are going to crash
- Thread starter thadude
- Start date
and yet these people still function with all the credibility. In 2008 I bought my first condo and everyone said I was crazy. I was like fuck you bitch in my head I am sick and tired of people being echoes or pawns. Now I am laughing because I have a nice house that doubled in value all enabled due to the fact I bought that condo at the right time.The players at the top know peoples memories is very weak and they can use these tactics to manipulate. Sometimes you need to trust your intuition and separate from the heard.
Although I have no doubt prices will fall now and it will be harder to sell in the next year. It will quickly come back.
The problem is you're looking at real home owners differently. Buying a home requires more than a downpayment and a steady paying job. You need to make sure that you will have the funds when shit hits the fan...Yes there will be sellers definitely but I won't call it a crash....there will be better deals definitely as it alway have when economy faces a threat of depression. We're not there yet.
Maybe the free ride on capital gains will come to an end to help pay for all the emergency spending?
Most people who predict housing market crashes can't afford to be in it and are secretly hoping for it to happen so they can afford to buy a home. Clouds their judgement.
Any anyone who isn't a moron knows a recession is coming. That's like, "Thank You Captain Obvious."
Any anyone who isn't a moron knows a recession is coming. That's like, "Thank You Captain Obvious."
The government will ensure banks are solvent. They won't interfere with the real estate market. Besides interest rates being low, nothing else they can do. Rest is supply and demand. All depends how bad economy gets. You would have to be a very optimistic person to think prices are not going down.
I didnt say it would happen, I said it could happen.
Have a look at this: https://finance.yahoo.com/news/money-losing-meaning-100023306.html
To answer your question as to when it will happen, hopefully never. But the longer this thing drags on the more likely it becomes
I think if the majority of people don't have more than 25% equity on their homes. The market could potentially be headed for a big drop.
I bet my left knot that at least 80% of people never read their mortgage contract. Specifically the clause where it states the bank can recall the loan at any time, if the value of the asset depreciates to a specific level outlined in the contract.
Also, at mortgage renewal, if your house is worth 1 million, you have 20 % equity, but the market depreciates by 25%, the bank will only give you a mortgage for 750, you will need to come up with the other 50,000. There are not many people that can come up with 50 grand.
People will get the money back eventually, but the reality is we don't know when that will be.
Also, when this is over governments are going to owe their country to lenders. Which means all those factories in China and other countries for sure will be returning home. At which point all those rich emigrants will no longer be rolling in money to drive the prices up. Don't think so, then look at Japan. In the 80s and 90s they were buying everything, but now not anymore.
If you think it can't happen here look at Alberta. In January they were ready to leave the country, make demands to stay..
Now they are sharing their medical equipment and PPE with the other provinces because they know, they are going to need help. Which also points to the fact that Alberta will be a great place to have all those Canadian companies currently operating in China.
https://www.google.com/amp/s/www.cbc.ca/amp/1.5523434
Calgary's housing market had become sluggish long before the pandemic arrived in Alberta, with sales figures and prices dropping since about 2017.
As a result, the almost 10-per-cent decline in March sales over last year doesn't seem too ominous — but it does mean home sales are now tracking at 24 per cent below the five-year average, according to AREA statistics.
New listings in the Calgary region dropped by almost 19 per cent, which the organization said could help take pressure off the overstocked market, the release said
I bet my left knot that at least 80% of people never read their mortgage contract. Specifically the clause where it states the bank can recall the loan at any time, if the value of the asset depreciates to a specific level outlined in the contract.
Also, at mortgage renewal, if your house is worth 1 million, you have 20 % equity, but the market depreciates by 25%, the bank will only give you a mortgage for 750, you will need to come up with the other 50,000. There are not many people that can come up with 50 grand.
People will get the money back eventually, but the reality is we don't know when that will be.
Also, when this is over governments are going to owe their country to lenders. Which means all those factories in China and other countries for sure will be returning home. At which point all those rich emigrants will no longer be rolling in money to drive the prices up. Don't think so, then look at Japan. In the 80s and 90s they were buying everything, but now not anymore.
If you think it can't happen here look at Alberta. In January they were ready to leave the country, make demands to stay..
Now they are sharing their medical equipment and PPE with the other provinces because they know, they are going to need help. Which also points to the fact that Alberta will be a great place to have all those Canadian companies currently operating in China.
https://www.google.com/amp/s/www.cbc.ca/amp/1.5523434
Calgary's housing market had become sluggish long before the pandemic arrived in Alberta, with sales figures and prices dropping since about 2017.
As a result, the almost 10-per-cent decline in March sales over last year doesn't seem too ominous — but it does mean home sales are now tracking at 24 per cent below the five-year average, according to AREA statistics.
New listings in the Calgary region dropped by almost 19 per cent, which the organization said could help take pressure off the overstocked market, the release said
I can't speak for other cities in Canada but there was a rental housing shortage in Toronto, so i don't see that going away (even considering people unable to pay rent). AirBnB rentals are dead. A small number of those rental properties and Airbnb that couldn't be converted to rental will get into market for sale but i don't see it being enough to bring prices crashing down. People still have to live somewhere. There may be a drop in condo prices because of the burden of monthly condo fee if an apartment is empty but other than that i can't see a crash happening here..yet at least.
And how selling your house for the market value is "cutting your losses"? No matter how much under your mortgage is, selling the house for its market value will not make you richer. If you have any assets (cash/stocks) left after selling the house and paying off the mortgage - you did not have to sell the house (you could have just taken a HELOC). If you have nothing left after selling the house - there is even less reason to sell : just live their for free and declare bankruptcy when get evicted.
I can say that when the government get the bill, as it currently is with bailouts, and they starts to look at the amount of undocumented income, there is going to be an issue insuring all these defaults.
This virus is not going away, people are speculating it will be making a return in the fall and hopefully it doesn't mutate into something more sinister. The curtans are being drawn and anyone looking for help is going to have to prove a lot of the shenanigans that have been going on for YEARS in GTA real estate. Trust me there is A LOT.
This virus is not going away, people are speculating it will be making a return in the fall and hopefully it doesn't mutate into something more sinister. The curtans are being drawn and anyone looking for help is going to have to prove a lot of the shenanigans that have been going on for YEARS in GTA real estate. Trust me there is A LOT.
Ah at long last the question that every post should be filtered through. Oh and experience has taught me the answers to your questions will be predictable.
LJ
It’s been my experience over the past 20 yrs that the naysayers who scream a crash is coming are the same people who want to keep you out of the market.
I bought a fixer upper that needed a lot of work around landsdowne & bloor in 2008 for 180k. Put 40k into it and still live there but it’s worth north of 1 million now. Fully detached and the neighborhood just got better o er the past 12 yrs.
Don’t listen to the bubble and crash people
I bought a fixer upper that needed a lot of work around landsdowne & bloor in 2008 for 180k. Put 40k into it and still live there but it’s worth north of 1 million now. Fully detached and the neighborhood just got better o er the past 12 yrs.
Don’t listen to the bubble and crash people
Nobody is really saying that real estate is a bad investment. Like all markets they are cyclical and timing is important.
2008 was probably a great time to invest in Toronto real estate. I'm guessing that someone who buys real estate in the next 6-12 months will do better than someone who bought last year.
Real estate is a long-term asset. The deferral gives homeowners a chance to benefit from the government stimulus and the eventual recovery. Money will be printed and that's always good for real estate.
Nope. It won't happen. A slow down and depreciation in selected markets is not a "crash".
What impact would 30% unemployment have on mortgage defaults? I can guarantee the banks on both sides of the border have run those numbers.
