It seems CREA is not doing his job and RE industry is not happy.
If crea is calling price decline means- ready for crash. They are last one to predict Tsunami when you can see Tsunami with naked eyes.
http://www.theglobeandmail.com/report-on-business/house-prices-to-fall-next-year/article1589243/
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Houses prices are whatever people are willing to borrow and the banks are willing to lend.
Quote:We have been hearing these housing crash warnings for at least 4 years now.
Originally posted by rahul_singh23
If crea is calling price decline means- ready for crash. They are last one to predict Tsunami when you can see Tsunami with naked eyes.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Atleast we agree on one thing.
Quote:
Originally posted by pratickm
I do agree with you that "houses prices are whatever people are willing to borrow and the banks are willing to lend."
http://www.greaterfool.ca/2010/06/04/lessons/
Lesson one: Sellers disbelieve what’s happening. Lower asking prices take months to materialize.
My take: Last Q 2010 will be interesting. RE experts and salesman already feeling heat.
Lesson three: Anyone saying ‘it’s different here’ isn’t paying attention. In fact, those cities believed to be the most desirable can suffer the greatest damage.
My take: Common problem - No or 5% money down, 35 yrs mortgage and lowest interest rate possible without preparation of future.
Lesson four: Real estate is the most emotional of assets. When the emotion is fear, no sale.
My take: Little moment to higher interest rate will create fear in sheep
Lesson five: Houses can go to zero.
My take: For lot of people when mortgage is more than market price and that is only investment/saving they have.
Lesson seven: When the storms sets in, everyone’s hit.
My take: Storm is already set, how long and effective will be we have to wait/watch.
Can somebody guide some which good areas (intersections) in the GTA to buy a condo/townhouse.
It seems the thread has turned into a debate whether their will (or not !! ) be a housing market crash.
Quote:
Originally posted by rahul_singh23
http://www.greaterfool.ca/2010/06/04/lessons/
Lesson one: Sellers disbelieve what’s happening. Lower asking prices take months to materialize.
My take: Last Q 2010 will be interesting. RE experts and salesman already feeling heat.
Lesson three: Anyone saying ‘it’s different here’ isn’t paying attention. In fact, those cities believed to be the most desirable can suffer the greatest damage.
My take: Common problem - No or 5% money down, 35 yrs mortgage and lowest interest rate possible without preparation of future.
Lesson four: Real estate is the most emotional of assets. When the emotion is fear, no sale.
My take: Little moment to higher interest rate will create fear in sheep
Lesson five: Houses can go to zero.
My take: For lot of people when mortgage is more than market price and that is only investment/saving they have.
Lesson seven: When the storms sets in, everyone’s hit.
My take: Storm is already set, how long and effective will be we have to wait/watch.
"There is not one time in history when a bubble has not burst. When bubbles burst, they not only fall back to their mean average, they usually drop well below it."
When govt tries to work against free market ( low interest rates, 0/40, 5/35) leads to longer recession and more people got suck into this bubble. But what govt can do when 50%+ voters are on bubble side.
Every month we would see new data/reports which make us similar to US cities. Home ownership is not a human right but a privilege which comes with lot of financial discipline and responsibilities. But our govt, brokers, banks, CMHC and buyers made DEBT (Mortgage) available for anyone who can fog the mirror in winter.
Quote:
Originally posted by ashedfc
So, if you are buying to live: pick is spot a buy it (price does'nt matter, negotiate the mortgage in such a way that, even if you loose your job, you should be able to afford your home).
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