When I can to Ontario, I looked at houses in Mississauga first and then Markham where I found Markham prices a bit lower than Mississauga so there is no surprise there. So lets how it goes but with the loonie down to 77 cents US, the correction will not be visible after all.

I have been doing rounds of new home sales offices in Markham and can tell that they do not have shortage of people falling willing to buy the $400k plus range detached homes.

So all this talk about home sales falling is really only for resale homes at best. Even those, I am not pretty sure of, because i have not really tracked the prices for the same house, since I was mostly looking at new homes so far. Only after being drived out of affording those, did I start looking at resale homes.

Quote:

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Originally posted by bc2on

When I can to Ontario, I looked at houses in Mississauga first and then Markham where I found Markham prices a bit lower than Mississauga so there is no surprise there. So lets how it goes but with the loonie down to 77 cents US, the correction will not be visible after all.

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http://www.greaterfool.ca/

Half a year later, Ottawa has dumped the 0/40 mortgages, and yet the move was – also as forecast here – too late. In the next six months we will see the following:

1. Eastern cities, including Toronto, will have markets fall another 10%, for a peak-to-Spring decline of 25%

2. Albertan cities will decline another 10% as well, for a rout of 30%.

3. Vancouver will crash 20%, taking the average price down 25%, on its way to 40% prior to the 2010 games.

4. Montreal and Ottawa will decline about 12% by Spring from the peak, while Maritime cities will escape absolute reductions, and merely flat-line.

5. Condo prices will erode the most, especially in Vancouver and Toronto.

6. Flashy new landmark towers in those same cities will never be built, while in Calgary they already know the score.

7. Large builders like Mattamy, now desperately cutting prices by more than $30,000 a unit and giving away free cars, could see their business volumes fall by two-thirds.

8. Recent, equity-less owners will owe more than they own, and enough of them will walk to generate shocked headlines.

9. Interest rates will crash lower, but mortgage rates decline far less.
Renters will trump owners.

Sometime next summer, maybe the fall, perhaps sooner, there will be major buying opportunity on certain kinds of real estate which have a sustainable future. More to come on that.


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Q: do our experts agree with this future RE market?

Did you read what the CREB expert say in Calgary Herald (28 Oct 08) - he said something like ...Calgary housing market is going up... - I thought that was the joke of the year!!

With so many homes "under water (owe more than value)", you might see many foreclosures in Calgary - as many as two thousand?

My brother works in construction industry, his company is forced to downsize due to lack of work (40 people lost job last month). They are now down to just 100 people, soon they could be down to 50 or 25.

Do you expect 50% price down?

http://2.bp.blogspot.com/_nSTO-vZpSgc/SQgJongBvjI/AAAAAAAADps/E6GeiyNXpbc/s1600-h/CAR-%25decline-2008-09.png

In the Vancouver area, the following high-profile developments have either folded up their tents of decided not to build:

Ritz-Carlton, Evelyn, V6A, Infinity Towers, and Sky Towers.

All five this month.


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Just like down at the hair salon where they cut each others hair during slow times, experts/realtors have all this free time for spin seminars. Expect a lot of weird mantras spewing out of the mouths of these desperate experts.

Same like CREB (Calgary Real Estate Board)-he said something like ...Calgary housing market is going up...

From 3rd Quarter release of CMHC Housing Market Outlook Canada, regarding Alberta:

“Prices: After the unsustainable gains of the last two years, the average resale price will advance by only one per cent this year. Market conditions favour the buyer, owing to a surplus of active listings and dwindling sales. Look for a gradual shift to more balanced conditions in 2009, resulting in modestly higher price growth of three per cent.”


My take:

There is no substitution of educating/research/attending training if needed for ourselves, does not matter that is RRSP, stock market, housing market. After that you can work with experts and easily cut down the crap.

What’s going on in Mississauga’s real estate market?

One thing that strikes me is the way the media constantly asks us if the time is right for buyers to step into the market. It is a fair question. But has any real estate expert said that this is not the time to buy?

Admittedly, there is indeed interplay between economic trends, market data and real estate projections. Realtors like me rely on current economic and industry data to present our views or projections on real estate markets. And if the reference data is skewed for any reason, the real estate projections could become incorrect.

Just to give you an example, the industry assumption of investor owned pre-construction condos is one-third of condos under construction. Should this actual percentage be higher, it can make the forecast incorrect.

Having said the above, active real estate professionals, those who work full time in this profession and are experienced in all types of real estate market conditions, can provide first hand information which is relevant to local events in their niche markets.

The global recession is imminent; world’s real estate prices are coming down, it is natural to see some effect in every real estate market in general. Mississauga is no exception. Real estate markets have always been cyclical.

Prices just cannot keep going up forever. Markets are relative to the economic situation, demand and supply. Housing affordability plays an important role, as also other factors, such as, the job market, inflation, cost of borrowing, personal savings and investment goals. Remember, it is the market that drives the real estate prices and not the other way around.

Looking at the way the current stock markets have been performing, many Mississauga home buyers find great solace in investing in their own home or other real estate investments.

Given below is a quick snapshot of some Mississauga neighbourhoods where I actively work, namely Mississauga’s Square One and West Mississauga (Eglinton/Hwy 10, Erin Mills area South of Eglinton, Credit Pointe, Churchill Meadows, Mavis/Eglinton area, Heartland Centre area, Meadowvale, Britannia/ Terry Fox, Mavis/Derry, Derry/Ninth Line, Winston Churchill/Britannia, Erin Mills Pk Way/ Eglinton, Streetsville, Glen Erin/Thomas St.)

W15 (Square One and area) district is in a buyer’s market mode. The average home sale price in Sep 2008 was $237,000, down 5.4% from the same time last year. However, average condo apartment's price was up by almost 6% during this period (comparing Sep 07-Sep 08). The sold to listing ratio of apartments has dropped to 27.8% down 4% from last year same time, almost no change in no. of active listings. Reason: fewer sales, lots of supply and competition amongst similar properties (small entry level condos).

Competition amongst the newer condo development sellers keep prices in check. This in turn helps smart buyers to snap up great deals from motivated sellers. Those investors who don’t see profits on flipping are turning into landlords. This keeps their investments safe, help renters and keeps rental rates from surging.

In W19 average home price in Sep 08 moved up approximately 1.47% than same time last year to $359,554. There is a lack of supply of newer homes.

In W20’s Churchill Meadows area activity has slowed down (higher sold to listing ratio). Avg. prices of detached homes are somewhat down by 3.7% in Sep 2008 to $451,929 in comparison to the same time last year. The average home price remained unchanged in the same period, which can mean that other home types performed better.

Mississauga’s unique proposition lies in the basic economic principle, i.e.; supply and demand of properties. Mississauga is almost out of suburban housing market and is set to grow upwards (high rise condo developments in Mississauga City Centre).

With much less supply of land and low inventory of new builder homes in comparison to other Toronto suburbs-Brampton, Oakville, Burlington and Markham, the fundamentals don’t point towards major price correction in Mississauga. Even if the prices will fall below ten percent they should come back sooner than the other suburbs.

Mississauga has always been in big demand and will always remain the most popular destination for the knowledge based new immigrants or move upper buyers from other adjoining suburbs.

Neighborhoods/ condominium buildings where properties rarely come up for sale, a slightly overpriced listing may still be snapped up faster.

There are also elements within each individual property listing that reflect positively or negatively on the listing/ selling price. A property owner may accept a lower sale price and still consider receiving full compensation when there is perceived monetary value in other aspects of the sale, or the seller may demand a higher price when asked to make concessions to a buyer’s needs, like closing date, conditions and financing, chattels and fixtures inclusion/ exclusion (appliances, lighting fixtures, furnishings etc.)

Further, price depends upon specific location or street, condominium building, type of property, competition amongst similar properties, number of bedrooms, bathrooms, frontage, square footage, taxes, overall condition, upgrades, basement, landscaping, exposure, balcony, parking, and locker.

More on my blog: http://condopundit.com/wordpress/?p=88

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Quote:
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Originally posted by JRF

Where in the world of GTA housing the prices are folding back. I am not able to witness any. How about others ? Is the price drop just in papers or in reality. I am not able to see any stories... it is really a surprise to me.



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Real world example:

I know this neighbourhood because a couple of friends live here and i almost bought a semi on this street:

e.g 1
3822 QUIET CREEK DR, MISSISSAUGA, Ontario

Today's price : 479,000$

Selling Price of a home on the same street (same builder) in 2007 which is 100sq for smaller than this home : 502,000$

e.g 2

3825 QUIET CREEK DR, MISSISSAUGA, Ontario

Selling price: 469,900
same sq ft as above home. Has been listed for more than 6 months, started with 529,000$ now has come down to 469,000.

e.g 3


#37 - 80 ACORN PL
selling price: $289,900

a similar model like this without finished basement was listed for more than 300K last year



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Live and Let Live


Chittesh,

I do not know about the first two examples, but I have a very good idea about example 3 and the facts are as below:

There is no unit in 80 Acorn Place complex without a finished basement. All the units have walk out basements and were all finished by the builder.

The complex was developed in 3 stages and units in each stage are of a different size. Though it is a townhouse complex, no two units ( even next to each other) are similar and they vary in size, number of washrooms, features etc.