TSX down 450 points

[Rockslinger]

I bought my house in 96 (It was a total fixer upper. It needed EVERYTHING)

The last Toronto real estate peak was in 2008. The previous peak was in 1989. It wasn't until 1999 that prices went back to 1989 levels (10 years).
The next peak will be in 2018.

You bought your house for 5 times your salary. Is that the normal ratio? Don't spend more than 5 times your salary to buy a house?

 

[james t kirk]

I bought my house in 96 (It was a total fixer upper. It needed EVERYTHING)

The last Toronto real estate peak was in 2008. The previous peak was in 1989. It wasn't until 1999 that prices went back to 1989 levels (10 years).
The next peak will be in 2018.

You bought your house for 5 times your salary. Is that the normal ratio? Don't spend more than 5 times your salary to buy a house?

Actually, if you adjust for inflation, housing prices are still not where they were in 1989, even at their 2007 peak.

http://www.torontohomes-for-sale.com/4a_custpage_2578.html

If history repeats itself, it will take 5 or 6 years for housing prices just to bottom out.

Who the hell knows.

 

[BottomsUp]

Doug Kass, a well known market bear just went on record to say that the S&P index will bottom out for the year in the next 2 or 3 days. Interesting call coming from this doom and gloom guy. We'll see.

 

[Rockslinger]

Doug Kass, a well known market bear just went on record to say that the S&P index will bottom out for the year in the next 2 or 3 days.

I don't understand the math. The economy is down 6% annualized. Yet, the S&P is down 50% annualized. Is the real economy de-coupled from the S&P?

 

[pokerdude]

If things get much worst we will probably lose a whole generation of investors. Young people seeing their parents get burned will shy away from the market.

 

[Rockslinger]

If things get much worst we will probably lose a whole generation of investors. Young people seeing their parents get burned will shy away from the market.

It depends. If the market starts rising again, the "greed gene" will kick in and people will flock to the market again. There is a lot of cash sitting on the sidelines earning 2% right now.