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Baby, we got a bubble!?

This thread has got me super depressed about my situation. There's so many units I've been looking at that are just plain over-priced. I've looked at units around Yonge & Eglinton and most 1+1 ~500-600sqft WITHOUT parking go for around $390k plus ridiculous maintenance costs in the area ~$600-800. Is there a reason maintenance fees in this area are so high? Is it because there's a lot of young people in the area who are getting onto condo boards and doing a poor job?

Been looking for a half a year and I'm super skeptical about buying now due to the pricing being so out-of-whack with reality.
 
BMO said:
This thread has got me super depressed about my situation. There's so many units I've been looking at that are just plain over-priced. I've looked at units around Yonge & Eglinton and most 1+1 ~500-600sqft WITHOUT parking go for around $390k plus ridiculous maintenance costs in the area ~$600-800. Is there a reason maintenance fees in this area are so high? Is it because there's a lot of young people in the area who are getting onto condo boards and doing a poor job?

Been looking for a half a year and I'm super skeptical about buying now due to the pricing being so out-of-whack with reality.
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Get use to these prices. They ain't dropping drastically especially in key established areas. Yonge St will always be hot. You can find 1+1 with parking for 360k-370k in the area. Seen one 700+ Sq ft. Would try to get in now as opposed to Spring. That's when bidding wars start for condos as well that are priced fair.
 
BMO said:
This thread has got me super depressed about my situation. There's so many units I've been looking at that are just plain over-priced. I've looked at units around Yonge & Eglinton and most 1+1 ~500-600sqft WITHOUT parking go for around $390k plus ridiculous maintenance costs in the area ~$600-800. Is there a reason maintenance fees in this area are so high? Is it because there's a lot of young people in the area who are getting onto condo boards and doing a poor job?

Been looking for a half a year and I'm super skeptical about buying now due to the pricing being so out-of-whack with reality.
Click to expand...

Look for a loft. Maintenance fees tend to be lower. I don' tthink prices are going to go down. They may stabilize but in high demand areas like Y&E...prices will only go higher. There's a lot going on there right now and the area has always been a hot spot for many.
 
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RZ12 said:
Yonge/Merton one just got listed under 360k
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You say prices aren't going to go down, yet this same property was listed at $380K a few weeks ago when I went to an open house for it. I thought it was over-priced then. $360K is a bit more reasonable. Still too small though, layout and all. The same thing can be said for some other units in 500 St Clair W that were Originally $360K and are now around $334K (unfortunately has no parking otherwise I'd put an offer). So i'm not entirely convinced prices (in condos) are going to continue to go up considering the huge stock coming into the market.
 
BMO said:
You say prices aren't going to go down, yet this same property was listed at $380K a few weeks ago when I went to an open house for it. I thought it was over-priced then. $360K is a bit more reasonable. Still too small though, layout and all. The same thing can be said for some other units in 500 St Clair W that were Originally $360K and are now around $334K (unfortunately has no parking otherwise I'd put an offer). So i'm not entirely convinced prices (in condos) are going to continue to go up considering the huge stock coming into the market.
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Some sellers are delusional, though.

Anyways, sit tight, the prices will come down due to over supply. 1 beds prices are going to go down for the most part IMO....especially the cookie cutter shoeboxes.
 
TheKingEast said:
Some sellers are delusional, though.

Anyways, sit tight, the prices will come down due to over supply. 1 beds prices are going to go down for the most part IMO....especially the cookie cutter shoeboxes.
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I see many listings for studios and small 1 bedrooms(under 550 sq ft) in the Entertainment District asking $750-800 psf.
there's definitely an oversupply in that area with many more projects coming online next few years, and many delusional sellers who bought at too high price point trying to flip for a profit - they'll be lucky if they break even.
 
While I don't see condo prices continuing to rocket upwards, single family homes (i.e. detached, semis and townhouses) just keeps continuing to increase. Sales volume was down year over year for January but sales price is up 7-14%! As long as these types of properties are moving up and away, it will keep the condo market buoyant since buyers will look to condos in the city. Outside of Toronto, it's still interesting to note that with condos in the 905, inventory (supply) is up considerably while sales price is only up moderately. We could see condo market equilibrium in the 905.
 
KA1 said:
http://www.theglobeandmail.com/repo...off-to-surging-start-in-2015/article22779802/

Just got posted on Globe & Mail website
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I find this very interesting: The article actually does not match the headline: In fact, I would say other than SFH's in the GTA, it does not support a surging increase.

Of particular interest from the article:

"January buyers instead flocked to the suburbs, sending sales of condos soaring 23 per cent, while detached home sales jumped 10 per cent. The shift is almost certainly driven by affordability as the average detached home in Toronto sold for nearly $950,000 in January compared to $650,000 outside the city."

This to me suggests that prices will not continue to go up. Hi rise unit sales vary alot month to month so this may be an aberhency but I think you are seeing with Toronto prices where they are, real estate commissions factored in, double land transfer taxes, and the sellers especially of SFH's are looking at $100K which they can easily put back into renovating their kitchen/bathroom or whatever. I think if one accepts that the suburbs are in fact where most of the growth is then the conclusion I would think is that people are priced out of the market in the core and perhaps the double real estate tax in Toronto is pushing the marginal investor to the suburbs.
 
James said:
While I don't see condo prices continuing to rocket upwards, single family homes (i.e. detached, semis and townhouses) just keeps continuing to increase. Sales volume was down year over year for January but sales price is up 7-14%! As long as these types of properties are moving up and away, it will keep the condo market buoyant since buyers will look to condos in the city. Outside of Toronto, it's still interesting to note that with condos in the 905, inventory (supply) is up considerably while sales price is only up moderately. We could see condo market equilibrium in the 905.
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I agree James with the condo market equilibrium in the 905. I personally would not buy a 905 condo as an investment except for personal use since there is more land in the suburbs and more room to put up more condos.
Regarding SFH's, I had not seen you rpost before I posted post #9385 but I think a lot of Toronto owners are not going to go anywhere.
Case in point. I know someone who had a house, wanted to go to a condo. Not 600 sq.ft. but 1800 to 2200 sq.ft. (from a 5000 sq.ft house)...downsizing. When they did the math, they concluded they could pay the gardner and someone to shovel the snow and their costs would be the same as living in the condo. Furthermore, they concluded the money they would save on real estate commissions/land transfer taxes/legals etc. would in fact pay to renovate totally the kitchen, the master bathroom and some further renos. They are not moving or selling. So I think we may well see that houses in the city will ultimately become the purvue of the "rich"/ "well off" and the smaller condo the defacto living for those who work in the City who chose not to commute.
 
cdr108 said:
I see many listings for studios and small 1 bedrooms(under 550 sq ft) in the Entertainment District asking $750-800 psf.
there's definitely an oversupply in that area with many more projects coming online next few years, and many delusional sellers who bought at too high price point trying to flip for a profit - they'll be lucky if they break even.
Click to expand...

yep. All those rooming house shoebox cookie cutter condos are going to sit and sit and sit.
 
interested said:
I agree James with the condo market equilibrium in the 905. I personally would not buy a 905 condo as an investment except for personal use since there is more land in the suburbs and more room to put up more condos.
Regarding SFH's, I had not seen you rpost before I posted post #9385 but I think a lot of Toronto owners are not going to go anywhere.
Case in point. I know someone who had a house, wanted to go to a condo. Not 600 sq.ft. but 1800 to 2200 sq.ft. (from a 5000 sq.ft house)...downsizing. When they did the math, they concluded they could pay the gardner and someone to shovel the snow and their costs would be the same as living in the condo. Furthermore, they concluded the money they would save on real estate commissions/land transfer taxes/legals etc. would in fact pay to renovate totally the kitchen, the master bathroom and some further renos. They are not moving or selling. So I think we may well see that houses in the city will ultimately become the purvue of the "rich"/ "well off" and the smaller condo the defacto living for those who work in the City who chose not to commute.
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Agree with the whole post but more specifically the bolded. This IMO is the biggest reason why house prices are through the roof. SFH owners are staying put and renovating their homes instead of selling, buying and paying for a) overpriced home, huge real estate commissions, and of course the wonderful dual land transfer tax. That IMO is creating the bubble. Why would I sell my house with a crapload of interest in it and then not only pay more for a house and then a bunch of other costs? Makes no sense.

shitbox houses have people flocking to them to outbid each other because there is so little decent supply. Then those who are priced out look to larger condos. So we're seeing some activity in that segment too.

Lose the land transfer tax and let the rates return back to normal and see just how many more houses would be on the market at a decent price.
 
TheKingEast said:
Agree with the whole post but more specifically the bolded. This IMO is the biggest reason why house prices are through the roof. SFH owners are staying put and renovating their homes instead of selling, buying and paying for a) overpriced home, huge real estate commissions, and of course the wonderful dual land transfer tax. That IMO is creating the bubble. Why would I sell my house with a crapload of interest in it and then not only pay more for a house and then a bunch of other costs? Makes no sense.

shitbox houses have people flocking to them to outbid each other because there is so little decent supply. Then those who are priced out look to larger condos. So we're seeing some activity in that segment too.

Lose the land transfer tax and let the rates return back to normal and see just how many more houses would be on the market at a decent price.
Click to expand...
Most analysts believe the land transfer tax puts downward pressure on home prices, not upwards. And I would agree.
 
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