real estate..... is it true??
- Thread starter parisbeautiful222
- Start date
$600,000 for a piece of land is quite expensive.It was listed for something like $600,000.
not anymore, In my neighbourhood they buy for 8 to 9 and tear them down$600,000 for a piece of land is quite expensive.
http://news.buzzbuzzhome.com/2017/02/13-charts-canadian-real-estate-2017.html
http://www.macleans.ca/economy/econ...isnt-driving-toronto-house-prices-so-what-is/
So at this point speculation and foreign buyers are driving the market in Vancouver and Toronto. The acceleration of house prices is not explained by population growth (which has been more or less tepid) which the 2016 census shows. Years of low interest rates, alternative lending, and non-traditional living (buying/sharing homes), string job growth and employment, and lack of inventory explained price growth up to now but with record levels of debt there is no reason for prices to continue going up at break neck speed and actually accelerating.
I think we're entering the final stages before the bubble bursts - hysteria and high speculation.
The bubble may burst into a soft landing considering the factors mentioned but we'll see.
http://www.macleans.ca/economy/econ...isnt-driving-toronto-house-prices-so-what-is/
So at this point speculation and foreign buyers are driving the market in Vancouver and Toronto. The acceleration of house prices is not explained by population growth (which has been more or less tepid) which the 2016 census shows. Years of low interest rates, alternative lending, and non-traditional living (buying/sharing homes), string job growth and employment, and lack of inventory explained price growth up to now but with record levels of debt there is no reason for prices to continue going up at break neck speed and actually accelerating.
I think we're entering the final stages before the bubble bursts - hysteria and high speculation.
The bubble may burst into a soft landing considering the factors mentioned but we'll see.
You're paying in and around $ 1M - $1.5M in the Kingsway area, depending on location, for a tear down on a 1 1/2 storey.$600,000 for a piece of land is quite expensive.
Sure you can still live in it, but it hasn't been touched since it was built in the 40's or earlier.
You're paying for the lot.
Houses will not bubble on their own. It will take a major economic downturn, huge job losses within the city. And severe restrictions on foreign investment.http://news.buzzbuzzhome.com/2017/02/13-charts-canadian-real-estate-2017.html
http://www.macleans.ca/economy/econ...isnt-driving-toronto-house-prices-so-what-is/
So at this point speculation and foreign buyers are driving the market in Vancouver and Toronto. The acceleration of house prices is not explained by population growth (which has been more or less tepid) which the 2016 census shows. Years of low interest rates, alternative lending, and non-traditional living (buying/sharing homes), string job growth and employment, and lack of inventory explained price growth up to now but with record levels of debt there is no reason for prices to continue going up at break neck speed and actually accelerating.
I think we're entering the final stages before the bubble bursts - hysteria and high speculation.
The bubble may burst into a soft landing considering the factors mentioned but we'll see.
If you have land it will still be worth huge. I don't see a drop. A temporary leveling maybe. And only until the economy improved. There is just a crapload of money and business in this city.
Shoot, when I lived in Montreal you could buy a nice new house in Dollard or Brossard for around $22,000 which was basically what a young professional would make in one year at that time. I preferred Dollard because it is on the island whereas Brossard is on the other side of the river. Wonder how much those houses are worth to-day?
Vacant homes a problem in major cities: https://betterdwelling.com/vacant-homes-global-epidemic-paris-fighting-60-tax/
Average detached house in Toronto costs $1,573,622
http://www.trebhome.com/market_news/release_market_updates/news2017/nr_market_watch_0217.htm
http://www.trebhome.com/market_news/release_market_updates/news2017/nr_market_watch_0217.htm
I've noticed a trend where new home prices are much higher than resale. Speculators are treating new home sales like an options contract. Relatively small deposits put down on homes to be built in 1-2 years simply on the basis there is no need to finance until closing with the assumption that prices will be higher at closing. Maybe sell the paper before closing. Good luck. Works for awhile until it doesn't any more.
Interesting when people say 2017 still a good year to invest in Toronto real estate. Was 2016 a good year too? When it's no longer a good year that usually makes the previous 2 years no longer a good year. Real estate is a long term equity investment. Why look only one year out on a highly leveraged investment that often takes months to close not seconds.
Interesting when people say 2017 still a good year to invest in Toronto real estate. Was 2016 a good year too? When it's no longer a good year that usually makes the previous 2 years no longer a good year. Real estate is a long term equity investment. Why look only one year out on a highly leveraged investment that often takes months to close not seconds.
Great points, wonky.
For some perspective here is a documentary about the San Francisco real estate market in 2015:
https://www.youtube.com/watch?v=SBjXUBMkkE8
A whole different scale. To date, I think prices there have continued climbing unabated.
Comment taken from https://www.facebook.com/groups/263249097430694/ "I lived in SF for three months last year- I stayed in a hacker house in the 2nd sketchiest neighbourhood there, shared a room with 7 other women (bunkbeds), 40 in the entire house, and paid as much as people in Toronto pay for a one-bedroom near the downtown core. I've never seen anything like it. I hope Toronto never gets that bad"
A look at San Fran in 2016
https://www.youtube.com/watch?v=LVVO8b4vvis
For some perspective here is a documentary about the San Francisco real estate market in 2015:
https://www.youtube.com/watch?v=SBjXUBMkkE8
A whole different scale. To date, I think prices there have continued climbing unabated.
Comment taken from https://www.facebook.com/groups/263249097430694/ "I lived in SF for three months last year- I stayed in a hacker house in the 2nd sketchiest neighbourhood there, shared a room with 7 other women (bunkbeds), 40 in the entire house, and paid as much as people in Toronto pay for a one-bedroom near the downtown core. I've never seen anything like it. I hope Toronto never gets that bad"
A look at San Fran in 2016
https://www.youtube.com/watch?v=LVVO8b4vvis
Here’s What Artificial Intelligence Tells Us About Toronto Real Estate Prices
https://betterdwelling.com/city/tor...lligence-tells-us-toronto-real-estate-prices/
I can't wait for their follow-up article containing AI's real estate market predictions.
Recall that AI predicted Trump would win the US election when most thought it impossible.
https://betterdwelling.com/city/tor...lligence-tells-us-toronto-real-estate-prices/
I can't wait for their follow-up article containing AI's real estate market predictions.
Recall that AI predicted Trump would win the US election when most thought it impossible.
Many recent articles on this topic.
http://www.bnn.ca/bmo-declares-toronto-housing-bubble-amid-dangerously-hot-prices-1.672542
http://www.bnn.ca/bmo-declares-toronto-housing-bubble-amid-dangerously-hot-prices-1.672542
At this point I'm not interested in buying more real estate and keeping myself liquid with the hope of a correction. I could be way off but I think a slowdown is coming in 2018. Town homes in the suburbs will be selling for close to $1 million if the current price acceleration continues in 2018.
March saw a surge in listings compared to last year. It could just be sellers offloading before any new taxes are introduced. I hope it's the start of a trend in excess supply.
The highest prices are typically in May and June. I think we will see more records broken. But what happens if interest rates go up even slightly later this year considering the improving economy and the US interest hikes. Is the BOC going to continue policy to keep the dollar low for exports and feed the real estate debt crisis/frenzy?
March saw a surge in listings compared to last year. It could just be sellers offloading before any new taxes are introduced. I hope it's the start of a trend in excess supply.
The highest prices are typically in May and June. I think we will see more records broken. But what happens if interest rates go up even slightly later this year considering the improving economy and the US interest hikes. Is the BOC going to continue policy to keep the dollar low for exports and feed the real estate debt crisis/frenzy?
sell..... and move somewhere cheaper. Im thinking new brunswick, and snow bird the other six months in another country.
Townhouses in the suburbs are already going for 1.2 million. Often I see builder towns going for 1.25 or 1.3. It's the whacked out speculators that don't care about price. They just drop deposits expecting the value to be higher in 2 years when they are have to close.At this point I'm not interested in buying more real estate and keeping myself liquid with the hope of a correction. I could be way off but I think a slowdown is coming in 2018. Town homes in the suburbs will be selling for close to $1 million if the current price acceleration continues in 2018.
March saw a surge in listings compared to last year. It could just be sellers offloading before any new taxes are introduced. I hope it's the start of a trend in excess supply.
The highest prices are typically in May and June. I think we will see more records broken. But what happens if interest rates go up even slightly later this year considering the improving economy and the US interest hikes. Is the BOC going to continue policy to keep the dollar low for exports and feed the real estate debt crisis/frenzy?
