the world economy is gonna remain weak for many years to come. things went get better until america does the right thing by drastically cutting the size of government as with europe, instead they are propping up zombie economies
Toronto Condo Market?
- Thread starter youwontknow
- Start date
We are definitely getting the impression that things are slowing down. I don't doubt your friend one bit. My point is though, that if China and India bring in Employment Insurance and Welfare-like programs so their residents don't save every penny they have, knowing there is something to fall back on, then their internal economy could continue growing at the previous pace. The reason why things are slowing down now in China is the decrease in demand from Europe and the U.S. We just need to wake up one morning and hear that China now has an EI program and BOOM HUNDREDS OF MILLIONS OF PEOPLE who were previously net savers, now spend some of those dollars. Global Recession Solved.Don't hold your breath. My friend just returned from a 2 year contract in Shanghai. He said it's slowing down big time.
We could also speculate that both those countries will introduce a new lottery in which every player is guaranteed to win. Or do you have some data that shows programs like that are even on the table?We are definitely getting the impression that things are slowing down. I don't doubt your friend one bit. My point is though, that if China and India bring in Employment Insurance and Welfare-like programs so their residents don't save every penny they have, knowing there is something to fall back on, then their internal economy could continue growing at the previous pace. The reason why things are slowing down now in China is the decrease in demand from Europe and the U.S. We just need to wake up one morning and hear that China now has an EI program and BOOM HUNDREDS OF MILLIONS OF PEOPLE who were previously net savers, now spend some of those dollars. Global Recession Solved.
The reason why the Toronto (especially downtown) condo market is hot is because people cant afford the commute from 905 anymore due to high gas prices. So long as gas prices keep going up I dont expect the condo bubble to burst anytime soon, in fact I think long-term it will keep going up
You've obviously not been reading the news then. The new condo market is so bad now that I would almost call it a collapse.The reason why the Toronto (especially downtown) condo market is hot is because people cant afford the commute from 905 anymore due to high gas prices. So long as gas prices keep going up I dont expect the condo bubble to burst anytime soon, in fact I think long-term it will keep going up
There's far, far more product on that market than is needed. Basic economics has and will continue to come into play for the real estate market.
Cooled down yes, but I disagree that its a collapse (or even close to that)You've obviously not been reading the news then. The new condo market is so bad now that I would almost call it a collapse.
There's far, far more product on that market than is needed. Basic economics has and will continue to come into play for the real estate market
What was it, 58% down I think? That's not a cool down.Cooled down yes, but I disagree that its a collapse (or even close to that)
Anyone who buys a condo now is going to regret it in a big way.
That much??? Since when??What was it, 58% down I think?
Got a link for that??
Sorry, I was wrong, it's 70%That much??? Since when??
Got a link for that??
http://www.huffingtonpost.ca/2012/09/24/toronto-condo-house-sales-collapse_n_1910576.html
If sales dropped because demand has fallen, then thats indeed a problem.Sorry, I was wrong, it's 70%
http://www.huffingtonpost.ca/2012/09/24/toronto-condo-house-sales-collapse_n_1910576.html
If sales have dropped because they overbuilt condo buildings (like in this report: http://blogs.wsj.com/canadarealtime/2012/10/16/toronto-condo-sales-fall-amid-oversupply-worries/) then that will correct itself over time
If thats truly whats causing the decline in demand and sales, then I agree its a problem for the condo market.Demand is plummeting across the country since the new rules announced in May kicked in... Sales drop first... then price!
But whats the flipside, if Ottawa doesnt tighten its mortgage rules then Canadians could wind up with massive debt, and we could go the way the Americans did in 2008.
Thats an even worse scenario
