Is the housing bubble about to burst
- Thread starter K Douglas
- Start date
This has been a topic, from before the internet days, so I highly doubt it.
The guy in the video is just looking for clicks. There are and always have been houses that don't sell right away. I see the new strategy by them and the realtor, of putting it back on the market at a low price, to create a bidding war, like the ones that happened before.
Before Covid, there was speculation that the cottage market would "correct" and we've yet to see that happen.
The guy in the video is just looking for clicks. There are and always have been houses that don't sell right away. I see the new strategy by them and the realtor, of putting it back on the market at a low price, to create a bidding war, like the ones that happened before.
Before Covid, there was speculation that the cottage market would "correct" and we've yet to see that happen.
I get it people have been foreshadowing the collapse of the housing market since the 2000's and that hasn't happened at all. In fact its been the inverse.
But there is some economic merit to what this guy is saying. A lot of people bought property in 2020/2021 when the interest rates were so low. Mostly investors. If they are still holding these properties and took out large debt they are going to be looking at significantly higher monthly payments. There is no doubt that real estate speculation, both foreign and domestic, has fueled a lot of the rise in property prices from the past decade. Now that many have fled, the prices need to 'adjust' to what people can afford.
But there is some economic merit to what this guy is saying. A lot of people bought property in 2020/2021 when the interest rates were so low. Mostly investors. If they are still holding these properties and took out large debt they are going to be looking at significantly higher monthly payments. There is no doubt that real estate speculation, both foreign and domestic, has fueled a lot of the rise in property prices from the past decade. Now that many have fled, the prices need to 'adjust' to what people can afford.
I think Durham region in general is faring better than the majority of the GTA. They seem to consistently have the lowest days on the market. But in my opinion it is sheer lunacy that a 3 bedroom townhouse in Pickering is fetching $900K+
I've been hearing about a 'housing burst' since 2001. During this anticipated burst, I've seen housing reach levels beyond what I could imagine.
So you tell me?
So you tell me?
Although not impossible, difficult to see a crash with NIMBYS/greenbelts/immigration.
Canada's #1 industry is Real Estate. Can't see the government letting it's top revenue generator crash.
A dip here and there, ok. But a huge correction, no.
Foreign speculators have the cash, so riding out the lows is all a part of it for them. It's the same for most domestic speculators and they can use depreciation as a write off come tax time. The people who it really hurts is the guy who thinks this is his ticket in, so he buys a second property, and then the market tanks and he's left holding a property that he can no longer afford. There aren't too many in this boat, so I'm just not seeing his point fully. Once again, this has always been an issue for some, mortgaging themselves to the max and remortgaging for the wrong reasons too. The percentage of people in this boat is too low to have any effect on the market, and let's face it, this crash would have happened when rates peaked, not when they're coming down.
Cottage lots (unserviced) have gone through the roof, in the past number of years. I've watched these for well over a decade now and can't believe what they're asking. After you factor in permits, architect's prints, clearing for a road/lot/working area. Bringing in hydro, if it's nearby. Septic, building materials and finding the right contractor. You're out of pocket/time and very large sum. I've looked at a few lots starting at $300k and can't even fathom how anyone can afford such a thing, unless your pockets are really deep.
The Toronto codo market is a deep kaka. Never understood why people were thinking a condo was worth close to a detached home with the same footage. Madness.
Houses for as long as they sit on land are gonna be a deep premium to those shit high rises these condo developers keep building.
Condos are pooched - nobody wants to buy a 1 bed with declining prices that doesn't cashflow.
Detached may be different but the bottom for condos is miles down from here. Wouldn't be surprised if the city eventually buys them for low income housing.
To boot the build quality on most if absolute trash.
Detached may be different but the bottom for condos is miles down from here. Wouldn't be surprised if the city eventually buys them for low income housing.
To boot the build quality on most if absolute trash.
I'm just waiting for the aliens to come and deal with all of us.
I’m not convinced… there’s a lot of fear lingering out there, as others have attested to. Property is one of the best investments you can make over the long haul. As they say, buy land! They’re not making any more of it. lol.
Not a vast oversupply though, I can understand not wanting to make the largest purchase in your life with such uncertainty. The US housing market will likely be affected but the huge hike in lumber prices as well.
The reason why Trudeau had a mass immigration policy. He was intentionally increasing the value of homes and lands so the government can collect more taxes. I never such garbage ever, Carney will do the same.
Developers are now suing pre purchasers in an attempt to mitigate their losses. Pre purchases can no longer secure lending because the properties are under water (current market value is below value at signing). When the bank of Canada raised interest rates it decimated the condo market. This on top of the death of offices due to Covid. There are record office vacancy rates downtown. Offices aren't anticipated to return until 2040. Now layer in the incoming tariffs. These are grim times...
