There are two conflicting effects in play :
1. People get in trouble and have to sell their condo.
2. Money is devaluated and bricks are a firm asset.
Housing and Condos are going to crash
- Thread starter thadude
- Start date
1. People get in trouble and have to sell their condo.
2. Money is devaluated and bricks are a firm asset.
Ok i'm going to explain this to you. People have no jobs and no money and it's not going to change anytime soon. The damage already done to the economy will take years to repair. This is going to go on for a long time though. The economy was not great before covid19 ever happened.
There's a number of people out there who think this will be over soon and the market is going to boom. That Toronto is a world class city and all they know is price increases.DELUSIONAL. Homes in Toronto where severely overpriced to begin with.
The houses haven't gone down yet because it not a leading indicator it a following.
If lose your job you don't give up your house the next day. First you go through savings, rrsp, toys, borrow money the house is the last to go.
You'll probably have to wait a few month when bankruptcies really start kicking in. People realize the job losses are not coming back anytime soon. Houses are still not selling and prices are starting to drop.
There screwed and panic sets in.
This isn't a pandemic that's causing this its huge debt levels. Covid 19 is the pin that's pops this riduclous bubble.
There's a number of people out there who think this will be over soon and the market is going to boom. That Toronto is a world class city and all they know is price increases.DELUSIONAL. Homes in Toronto where severely overpriced to begin with.
The houses haven't gone down yet because it not a leading indicator it a following.
If lose your job you don't give up your house the next day. First you go through savings, rrsp, toys, borrow money the house is the last to go.
You'll probably have to wait a few month when bankruptcies really start kicking in. People realize the job losses are not coming back anytime soon. Houses are still not selling and prices are starting to drop.
There screwed and panic sets in.
This isn't a pandemic that's causing this its huge debt levels. Covid 19 is the pin that's pops this riduclous bubble.
I was gearing up to sell and downsize to a condo W of Oakville. The house is proving too much work/money and I'm fed up being a landlord. Either way I'm selling (house) and buying (condo) and may even have a private buyer (well known to me), eliminating agent fees. I'll still need an agent to buy.
You guys will be in for a surprise when the bubble doesnt burst and we hear more bitching and complaining about residential property prices from the usual suspects, and especially those that do not own residential property currently.
With so many rich Chinese buying up real estate in Toronto and the GTA, you only wish prices were dropping.
Isn't this what they said about oil? There giving it away now!
You must work in realestate.
I dont think rich chinese are coming here anymore buying. I think china has big problems of there own to deal with. If that's what you hope is going to keep are realestate market stable....well I think your in for a shocker.
Oil isnt residential real estate. As long as there are human beings, homes are needed. As for Chinese culture, you have no clue, with all due respect. And no im not an agent right now.
You underestimate property owners compared to those hardest hit by covid which is moreso renters than owners.
You're right theres a lot more land then oil. I can remember them talking oil up how it'll only go up theres only so much blah blah blah.
Majority of condo owners in Toronto are mom and pop overleveraged investors.
Canada has no population hoping rich immigrants come here to purchase overpriced homes in not reality.
Realestate will only keep rising to infinite and never fall! Its basic math housing prices have risen much more than wages. Its unsustainable.
My point being this has gotten out of hand homes are for people to live and raise families in. They should be affordable for its citizens. Not to liveing paycheck to paycheck.
It shouldn't be used as ponzi scheme or a way of making quick money.
We know six million people applied for government emergency income support – about a third of the entire workforce, unable to survive a single month without pay. And we know that as of two days ago, Ottawa had already paid $20 billion. When has this ever happened ?. How many homeowners do you think can afford to carry their properties ? They have a 6 month reprieve but what happens after that ?
Over half (54%) of homeowners have asked their lenders for mortgage assistance, like payment deferral, according to a Forum Research poll
Six per cent of people have already missed a mortgage payment, while 14% of renters couldn’t pay their landlords. (Over half of all renters asked for relief.)
Somewhere between 600,000 and a million homeowners have requested, and received, six months of payment deferrals. This is costing the banks close to $1 billion in monthly cash flow, and all of that money is being added to the debt that families will have to finance.
That does not bode well.
Over half (54%) of homeowners have asked their lenders for mortgage assistance, like payment deferral, according to a Forum Research poll
Six per cent of people have already missed a mortgage payment, while 14% of renters couldn’t pay their landlords. (Over half of all renters asked for relief.)
Somewhere between 600,000 and a million homeowners have requested, and received, six months of payment deferrals. This is costing the banks close to $1 billion in monthly cash flow, and all of that money is being added to the debt that families will have to finance.
That does not bode well.
Unfortunately Sophia real estate agents for the majority will tell their clients and the general public what they can get away with. Very few are fully honest with their clients.
April year over year has seen a significant drop in sales, and listings and a small drop in listing and selling price.
Sales are down -69%
Listings are down -64%
Listing price, and selling price averages are down -1.5%
This type of trend (year over year drops) should continue for the remainder of the year going into 2021. I suspect a significant number of buyers who have bought pre construction projects and are supposed to close in July and August this year will have issues with their closing which will further drop down the prices and the market in the fall.
If I were you I'd find a new real estate agent.
I know for a fact that Chinese are buying up oil. They're stockpiling oil now while its free. They will do the same for cheap real estate prices. They will love to buy Toronto condos at prices discounted at 40%. We have no worries about condos going to zero. There are plenty of buyers for march $800k condos at $550k. No worries....
Yeah I contacted my agent and he said now is not the time to be buying or selling anything. Banks are likely not willing to loan out money, when they're losing money by deferring mortgage payments for their clients. Not sure what I'm going to do as prices are already high to begin with and it's impossible to get in the market anyway.
J
jerbear15
Not to mention rent is starting to go down because now theres more rentals then people looking for places. People moved back home and immigration has stopped not to mention who wants to buy a rental unit that not making money.
Even before the virus, rent was finally starting to go down. A few years ago it was insane. One bedroom condo/apartments were going for 2'Gs. Seems to be a lot of listings for about half that price now, unless they're scams. I can't tell. Seems TGTBT, but there's so many at that price. They can't all be scams can they??
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About 15% of mortgage holders in Canada have asked for mortgage deferrals. Too many own real estate they can't afford. I think there will be a huge rush of real estate listings when the 6 month mortgage deferrals expire.
the market goes down the market goes up, where have you been? If you think you will die in the next five years sell your house and book into a convalescence home, other than that sit tight it's just a wave, and besides if you have some smart investments this is going to be a moneymaker best not to have all your eggs in a housing basket.
LJ
This post stuck in my head. It's absolutely true that the Fed and Treasury injecting more money into the economy should help hard, brick and mortar asset values all other things being constant.
We however know in this crisis not everything else is constant. I suspect the Velocity of Money is significantly falling. This basically means money is not moving through the economy as fast as it was pre-crisis. Money is not being spent quickly. The Velocity of Money falls in depressions and major recessions.
So a condo at 66 Portland on the 2nd floor sold for $649,000 and was 647 square feet and that was LAST APRIL. In January this year a 1 plus den with parking sold for $701,000 and was the same 647 square feet with parking. Then on April 16, a 686 square feet unit sold for $760,000. So we went from $1,003/foot to $1,083/foot to $1,107 per foot.
Just people thinking there is a crash coming are in for a rude awakening. 2,500 properties under $1M sold last month, there are less than 6,000 of these available, therefore not a market that has issues. Over $1M has issues. And with regards to the AVERAGE price, when there are things like this the luxury market stops pretty much and therefore the numbers get skewed because the expensive stuff is on hold, which are homes valued at over $1M.
Numbers don't lie, only people who dont understand numbers or the market place who don't actually do any work in real estate lie.
Just people thinking there is a crash coming are in for a rude awakening. 2,500 properties under $1M sold last month, there are less than 6,000 of these available, therefore not a market that has issues. Over $1M has issues. And with regards to the AVERAGE price, when there are things like this the luxury market stops pretty much and therefore the numbers get skewed because the expensive stuff is on hold, which are homes valued at over $1M.
Numbers don't lie, only people who dont understand numbers or the market place who don't actually do any work in real estate lie.
Yup...
https://www.cp24.com/news/mortgage-...-won-t-recover-from-covid-for-years-1.4926672
Mortgage, housing agency says home prices won't recover from COVID for years
https://www.cp24.com/news/mortgage-...-won-t-recover-from-covid-for-years-1.4926672
Mortgage, housing agency says home prices won't recover from COVID for years
