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Baby, we got a bubble!?

CN Tower said:
That's great info about the flippers and gamblers. We all know that they eventually crash and burn and leave us resident taxpayers with the headache of cleaning up their mess.

Now, does anyone have any info about the real demand for new condo living in this city?
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Good and similar point to what I was saying that it may continue the market a bit longer. By real demand I assume you are talking about end users and long term investors. I don't know CN Tower how one could get this data as it would have to be extrapolation of data with people's best guesses since sales don't register as "flipper/ short term investor/ long term investor and landlord/end user".
 
There are probably some people out there who remember prices falling in 2008 and skyrocketing soon after. They're probably getting in now thinking the same thing is about to happen.
 
Kenny said:
There are probably some people out there who remember prices falling in 2008 and skyrocketing soon after. They're probably getting in now thinking the same thing is about to happen.
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not unless the Bank of Canada drops their overnight rate from 4.50% to 0.25% again, which spurred alot of buyers to variable rate mortgages, and IMO accounts for the 50% gain since 2006.

oh wait, they can't because it's currently at 1.00% ...

if rates were to drop again, i suspect activity will slightly increase but prices will be stable b/c the last group of marginal buyers will get in.

unfortunately, they'll overpay and be loaded with high debt and higher interest rates as the historical 'emergency' rates won't last forever when the term comes due for renewal
 
I don't believe you will see a drop in Canada's interest rate. Just a pause before increases next year.

And if this is not the case, it is because the Canadian economy is deteriorating, something which surely with the headlines in the papers should not encourage increased prices ( at least not logically).
 
New home index up .1 that is a good thing, stabilzation in latter part of 2010 when all were calling for a huge market correction, I will take it
 
Res rates down again, BMO now offering posted 3.49 5 YR, look for brokers to beat it by a tenth, one day maybe we will see 5 yr fixed and bank prime same
 
In the print edition of today's The Globe and Mail, Report on Business section, on page 2, under the heading "Six ways to make it in real esate", real estate reporter Steve Ladurantaye has quoted from a report published on Wednesday by Pricewaterhousecooper and Urban Land Institute. 2 sure ways to make money are buy apartments " if you can find anything available" because they "tend to offer the best security" and accumulate land inside Toronto's greenbelt, because demand for residential development in city limits should increase.

Could Condo George be right that, despite pessimistic reports about the current real estate market, core downtown C1 area is full of activity, that real estate prices are steady in C1 area and that, despite recent hickups, prices are bound to go up?
 
One can hope that CG is right. Personally, I hope that prices just stabilize or drop a bit and I hope they do not further escalate. In the rush to this argument, allfundamentals are being omitted. As said before, we do so at our peril.

Today in the National Post they say that Ben Bernanke and the Fed are looking to "talk up all asset classes" because the continue to fear deflation. US is still 65-70% of our exports. The fact that bond interest rates around the world, and therefore mortgage rates are dropping further is a sign that the bond market is pessimistic about the future and certainly the bond market at least is pricing in little to no inflation, so why should prices go up.

That said, the stock market seems to be cheering the other way. The gold buffs are bidding up the price. They all can't be right.
So, whoever turns out right will be correct: CG with the Stock Market/Gold or the more pessimistic on this forum with the Bond market.

One other thing that may help in the near term. The C$ is rising (or if you prefer the USD falling) making the Canadian real estate at least in the short term look good as purchasing here in a foreign currency should yield price appreciation and currency appreciation.
 
KA1 said:
In the print edition of today's The Globe and Mail, Report on Business section, on page 2, under the heading "Six ways to make it in real esate", real estate reporter Steve Ladurantaye has quoted from a report published on Wednesday by Pricewaterhousecooper and Urban Land Institute. 2 sure ways to make money are buy apartments " if you can find anything available" because they "tend to offer the best security" and accumulate land inside Toronto's greenbelt, because demand for residential development in city limits should increase.

Could Condo George be right that, despite pessimistic reports about the current real estate market, core downtown C1 area is full of activity, that real estate prices are steady in C1 area and that, despite recent hickups, prices are bound to go up?
Click to expand...

Sure, owning income generating apartments is not a bad place to park wealth but it certainly is not a place to generate it! When the investment return starts to creep into the 2% range as I would venture to guess it does in every single deal that Condo George is pushing you are de facto overpaying.

The decision of whether to park $1,000,000 in apartment units generating a 6% return vs. buying $1,000,000 of Air Canada shares is a no brainer. I believe this is what Mr. Ladurantaye is advocating.
 
A friend of mine runs small (3-4 people) bussiness of replacing cartridges in printers in North York. He told me RE offices have decreased their orders dramatically , 2 ReMax offices moved to the basements, a few others closed. THe guy who delivers cartridges to clients says those plazas that were impossible to find a parking spot 2 years ago are now 1/3 or half empty. I just can't imagine how in this conditions RE can hold its ground, leave alone rise in price.
 
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