Toronto home sales fall for fourth month, plunge 40 percent year-on-year
Jump to Page:
< Previous [ 1 ] [ 2 ] Next >
Posted on: 03-08-17 13:12:03
Toronto home sales fall for fourth month, plunge 40 percent year-on-year:
http://ca.reuters.com/article/topNews/idCAKBN1AJ1IO-OCATP
40% is a huge (and a scary) drop. I heard from a friend of mine who lives in Brampton as to how the prices are dropping as well, with no guarantee that the house will sell in its due course. That does not sound too good.
So, what do you make up of this report? And, how are you seeing this trend in housing/real estate all around you?
Here in Metro Vancouver, the market for Detached has subsided already with not much activity. Bidding wars are scarce, although the prices are yet to come down to call it a real slowdown. On the other hand, Condos and Townhouses are seeing an upward trend as well as the bidding wars.
I would say, the next 6-12 months would be interesting. Especially, when it is time for Bank of Canada to review the Interest rates.
Quote:
Originally posted by febpreet
Toronto home sales fall for fourth month, plunge 40 percent year-on-year:
http://ca.reuters.com/article/topNews/idCAKBN1AJ1IO-OCATP
40% is a huge (and a scary) drop. I heard from a friend of mine who lives in Brampton as to how the prices are dropping as well, with no guarantee that the house will sell in its due course. That does not sound too good.
So, what do you make up of this report? And, how are you seeing this trend in housing/real estate all around you?
Here in Metro Vancouver, the market for Detached has subsided already with not much activity. Bidding wars are scarce, although the prices are yet to come down to call it a real slowdown. On the other hand, Condos and Townhouses are seeing an upward trend as well as the bidding wars.
I would say, the next 6-12 months would be interesting. Especially, when it is time for Bank of Canada to review the Interest rates.
It's the news editors job to present the news in a sensational manner.. for obvious reasons.
The drop is number of sales not the property price. The prices have dropped about 6-7% which is negligible compared to successive 10%+ increases in the recent past.
The buyers are uncertain and some will employ a wait and watch approach to see if the prices drop further. The actual fall will start after the next rate increase when it will be no longer viable for the sellers to hold on. I came across a few sellers who bought during the frenzy in March-april hoping to recoup the overpayment by selling their own house at a higher price. They are now stuck since quite a few of them have closing dates approaching and the market is moving sideways.
A few detached house in our neighborhood sold under asking at a price almost $150k less April prices. A few listing have disappeared without sale and might reappear in Dec/Jan after the uncertainty has settled. 45-60 days time frame is becoming normal, the agents are no longer offering garantees...
I don't think GTA will follow BC trend since immediately after the 15% tax, the mortgage rates also increased with a strong rumor of another increase in September/October. This has taken some buyers out of the market.
Interesting times ahead. Not advisable to invest for flipping.. unless you have deep pockets and guts of steel.
Hiren
Prices won't go down in Toronto. They will stagnate. But they are already so high, it won't matter if they stagnate. So homeowners need not worry.
Plus mortgage interest rates are already so low another 0.25 increase won't make much of a difference, people will still buy.
People will just move to the suburbs of Toronto now, the 905 areas like Markham, Mississauga, Vaughan, Oakville, Ajax, Pickering.
If you have a house in the 905 area, you need not worry as most immigrants to Canada are settling there anyway, so prices won't go down. They need & will live there.
Desis come to Mississauga & Brampton. Chinese come to Markham. As long as 300,000 immigrants come each year to Canada the prices in GTA are not going anywhere. As no matter what you tell them, their primary destination of arrival is still Toronto & Vancouver.
They don't exactly want to live in Manitoba & Saskatchewan.
In every family there is one earner who works and makes a few bucks and also has a small amount of savings which he wants to use to get a roof over his head. In some families there are TWO bread winners and they have more clout when they enter into these Real Estate Markets to buy a Property.
What they can buy is predetermined by the local THUMB RULES (Or the so called Laws) and they say you can only use 28% of your earnings for the purchase for a ROOF OVER YOUR Head.
Having said that, the increase in the interest rates puts a dent in everyone's budget. A few will find that a purchase of a MILLION Dollar Home, with $800,000 mortgage, will be out of their reach, even with two earners in tow. (2.6% fixed and on a 5 year fixed term and 25 year amtz.)
http://www.kahnawake.com/org/sdu/housing/calculator/CalcAmortE.htm
The R.E.Sellers are smart and just to accommodate these borderline buyers, they cut the prices down by say 7% value and throw them onto the markets, because they want a quick sale.
There they start the chain reaction. People who are observant and watching the R.E.Prices of homes, now find that the price of the same home has dropped down and those who were sitting on the fence whether to sell now or wait till it still going up, want to now enter and post their homes onto the market, lest they lose out on the Peak prices that they can get for their own property.
So, now we have 25% increase in R.E.ADs on the market. Everyone wants to dump their own holdings and move out. So we see a FEAR Factor has set in. There will be more increases in Interest rates going to creep in, and it is sooner than we thought, so they all want to sell and get out. Make their best bucks while the going is good.
I am not into Mortgage and I am not into Real Estate, but surely, a little bit of Arithmatic and a lot of logic and understanding of the Psychology of the markets and a little bit of sane thinking, I can come to a conclusion, that the sellers have entered the markets and the buyers will find more choices, either in Price and a Location and also a few with all of the frills and thrills thrown into it from here on.
So, Enjoy the ride, if you are into one. If you perchance are a BUYER, then, look out for a good bargain.
Have we burst the bubble? NAY.. it is just see sawing and it is the signs of times.
My two bits to the conversation at the start of the day.
Have a good long week end.
FH.
This came just this morning.
What slowdown? Vancouver and Toronto real estate markets still hot and unaffordable for many
http://www.cbc.ca/news/business/real-estate-housing-toronto-vancouver-prices-1.4236245
Quote:
Originally posted by febpreet
This came just this morning.
What slowdown? Vancouver and Toronto real estate markets still hot and unaffordable for many
http://www.cbc.ca/news/business/real-estate-housing-toronto-vancouver-prices-1.4236245</font>
The slow down was a temporary blip. The sellers are not blinking and won't sell for less. Most have just taken their houses of the market. It will rebound again in Fall or next Spring. Winter will be slow again.
So buyers who think they can get one for cheap will keep on waiting.
I know someone in GTA who listed their 2 BHK Condo for $ 350,000 about 2 months back. They only got 8 visitors in 2 months and NO offer for $ 350,000 . So they have just taken it off the market and will try to sell maybe next year. Either they want to sell for $ 350 K or NO sale.
Its a fair market price, neither over priced nor under priced, as earlier in Spring 2-3 exactly same condos in the same building sold for $ 350,000 within days, hence they also priced it for the same amount .
The Number of sales & buyer have definitely reduced temporarily this spring/summer, but the prices haven't really in GTA.
Crazy bidding wars and paying above the asking price are NO longer happening in GTA. But the house will still be sold at the asking price and not below.
What's up with the houses such as the one with the link below, now listed for under $600k? The house and the neighborhood looks alright. I am pretty sure the last time ( I looked at Brampton listings, nothing stood out for less than $800-900k. And, now I could see hordes of the detached homes under $700k:
https://www.realtor.ca/Residential/Single-Family/18507968/78-FARTHINGALE-CRES-Brampton-Ontario-L7A1W8-Fletchers-Meadow
I also know a friend in Brampton, who had quite a hard time a month ago selling his decent detached in a pretty good neighborhood. He had to take it off market eventually.
Good time to be a buyer? Or no?
