Baby, we got a bubble!?

[JordanRHughes]

Interesting perspective. We have also been considering the market in your area. We want to move out there, but the market is to high. We are waiting for the rates to lower.

 

[interested]

http://www.theglobeandmail.com/glob...pping-for-a-property-collapse/article1661830/

Sky is about to fall, guys.

Actually, could that fuel our market as people continue to seek outside of China to inves?t

 

[KA1]

Actually, could that fuel our market as people continue to seek outside of China to inves?t

I would like that to happen. I would love to see 'doom and gloom' sayers get caught with their pants down.

 

[interested]

Article in the Globe and Mail on line: re: Vancouver market.

I apologize but am having difficulty getting it to copy.

The market in Vancouver has gone cold and is now a buyers market with a 45% decline in sales.

I realize Vancouver is perhaps overinflated more than Toronto but why would people not believe Toronto will not follow suit as well?

As well, the article says prices down 2.8% since April with 33% increased supply compared to this time last year. they further call for more weakness.

As I said before, psychology changes very rapidly. I think we are witnessing this. I fully thought the rapid turnaround in 2009 was not sustainable and I believe now we are seeing the beginning of the 2008 price retest.

As I have said before, I do not forecast total doom and gloom but I think it is becoming clearer by the day as articles and data emerge that a shift has definately occured and is unfolding

I apologize. I note cdr posted under Vancouver prices drop the article this afternoon already. Please refer to his posting for the article

 

[interested]

http://www.yourhome.ca/homes/realestate/article/843452--new-condo-sales-start-to-slow

Not sure if this was posted but from the star today.

Note in the article: 12000 more units coming on line.

Also, states that resale has stagnated from Q1 to Q2 changing by $1. Therefore, with the 3rd quarter apparently slowing, look for an actual drop in resale price and with all the product, the difference to new should shrink, especially if people add the HST to prices over $400K

 

[KA1]

Thanks for posting link to The Star.

Also just noticed the listing at MLS going at $ 600.00 sq. ft. Note: unit is vacant. Owner is paying occupancy costs for an empty unit. Sign of things to come?

http://www.remaxcondosplus.com/property.php?propid=EXC4867&agent1=gabi

 

[cdr108]

Thanks for posting link to The Star.

Also just noticed the listing at MLS going at $ 600.00 sq. ft. Note: unit is vacant. Owner is paying occupancy costs for an empty unit. Sign of things to come?

http://www.remaxcondosplus.com/property.php?propid=EXC4867&agent1=gabi

* Class: Residential Condo
* Type: Condo Apt
* Balcony: yes
* Bedroom(s): 1 Bedroom plus Den
* Style: Condo Apt
* Approx Square Footage: 607
* Parking Space(s): no

Maintenance: $381.53 plus hydro/month
Taxes: $approx. 1% of Purchase Price per year/year


those are high maintenance fees .... $0.62 PSF = $381.53 plus hydro / 607 SF

i don't understand the 'investment' appeal for this building nor the $600 PSF price tag
... the finishes are average, location is meh, maintenance fees are expensive (and that's only going to go up).
i can see the fees going up substantially to $1.00 PSF/m within few years, and that typically depresses the market value of properties

 

[simuls]

I was thinking the exact same thing - those maintenance fees are super high (closer to $0.63). I would say this isn't a bad deal if it included parking, but without, I'd put it more around $320 000. I'm guessing we're going to see a lot more of this and a lot more price adjustments.

 

[KA1]

http://www.theglobeandmail.com/report-on-business/canadian-housing-market-cools/article1661751/

 

[interested]

I concluded the same thing when prices hit $500/sq. ft. (that rental investment real estate simply made no sense.)

Add in the 12000 units due to come on line for the rest of this year and we may just see about 15% or $100/sq. ft. within 6 months drop from $600 to $500/sq. ft.

Already resale has stagnated so I am sure people have to start to ask themselves if it makes sense when resale is closer to $400/sq. ft.-$500/sq.ft. to pay $550-$650/sq. ft. for new product anticipating "future price escalation".

Next thing we will hear from realtors and I state this as I heard the same thing in Florida as its market was tanking was that "the mainstream media" is to blame as they get the facts wrong and are aggravating the problem. The interesting thing is that this may well be true about aggravating the problem but I did not hear these complaints when things were heading straight up like a rocket. Perhaps now they will stop publishing every second home sold in the newspaper at "beyond asking price".

 

[Condo George]

http://www.torontorealestateboard.com/consumer_info/market_news/mw2010/pdf/mw1007.pdf

Also, Canadian housing starts jumped a surprising 6.5% in June shocking most experts.

Treb #s not bad considering the nightmares some had re HST implimented on July 1

 

[myfive]

http://www.torontorealestateboard.com/consumer_info/market_news/mw2010/pdf/mw1007.pdf

Also, Canadian housing starts jumped a surprising 6.5% in June shocking most experts.

Treb #s not bad considering the nightmares some had re HST implimented on July 1

thanks George...nice to see something specific to Toronto. Amazing really! Easy to see that the market will heat up again in the fall. The 'summer doldrums' are holding their own just fine. Nice time to buy to avoid bidding competions. Don't know if this peaceful pace will last. Overall on schedule for my projected ramp up in activity this fall. From the article:

“Market conditions promoting
growth in the average selling price
have remained in place. While
July sales were down compared
to last year, the number of new
listings in the marketplace also
fell. This means there was enough
competition between buyers to
exert upward pressure on price,”
said Jason Mercer, TREB’s Senior
Manager of Market Analysis.

 

[daveto]

http://www.torontorealestateboard.com/consumer_info/market_news/mw2010/pdf/mw1007.pdf

Also, Canadian housing starts jumped a surprising 6.5% in June shocking most experts.

Treb #s not bad considering the nightmares some had re HST implimented on July 1

There is no reference to Canadian housing starts in the TREB report. CMHC figures show stable monthly housing starts for 2010, and a seasonally adjusted drop of 3% June from May. What is your source for the 6.5% shocking increase?
http://www.cmhc-schl.gc.ca/odpub/es...72374f3049a5ad65f5851924259b&fr=1281023303106

Aren't the majority of TREB sales are resale, and therefore without the HST on resale.

 

[interested]

I think we should all take a guess as to where the market will be in say Dec 2010 and Dec 2011. Then, whoever is closest gets treated to coffee.

I am glad that condo George and My five are posting representing the other half of this equation. While I don't necessarily share their optimism, it is always good to watch the data parsed in a different fashion.

 

[KA1]

http://www.torontorealestateboard.com/consumer_info/market_news/mw2010/pdf/mw1007.pdf

Also, Canadian housing starts jumped a surprising 6.5% in June shocking most experts.

Treb #s not bad considering the nightmares some had re HST implimented on July 1

http://www.theglobeandmail.com/repo...s-exit-toronto-housing-market/article1662642/

Link to a news item in The Globe and Mail. Prices in July decreased by 3.3%.

Same statistics but different conclusions.

Can someone, please, tell us the 'true' story?