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Baby, we got a bubble!?

SOME Realtors will sell just about anything to anyone that will buy it... chasing the $ and nothing else.

There is are very very few agents out there that can provide proper guidance and market insight to purchasers. Sorry to hear about your friend cruzin4u.. it sounds like they have been dealing with someone that was not equipped to provide proper market guidance.

From what I see, Etobicoke waterfront has been struggling due to oversupply, lack of demand and poor public transportation and does not seem like it will change in the immediate future. There are some other areas of the city that are experiencing similar issues.

On the other hand there are areas in the city that are booming and there are simply a huge shortfall of properties... (some areas in the downtown core)

As an investor I personally stick to the DT market because there is always demand for rentals, prices seem to be stable and IMO there is huge future potential. BUT it's not the same market as 10 yrs ago and you must be selective in what you buy product, area and ensure rental flows are positive (as a backup plan). AND I am not a Realtor!

Oh - Sales of new/precon only have a real impact in the market 3-7 years later (depending on completion) if new/precon sales dip to all time lows and demand is still steady we will have a shortage of housing. Example we will see a shortage of new condos in 2015-16 because of the lag in sales form 2008/2009.. and same in 2018/19 because of 2013. I hope because of delays and builders adjusting occupancy to the market it works itself out because shortages eventually hurt healthy markets.
 
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Canada’s housing market overvalued by 10%, Toronto-Dominion Bank study finds

Deutsche Bank puts it at 60 per cent, others in the area of 30 per cent. But Toronto-Dominion Bank says Canada’s housing market is overvalued by just 10 per cent, based on a fairer measure.

The price-to-rent ratio pegs the level at 60 per cent, Ms. Petramala said, but is “skewed” by rent controls, and thus it’s hard to determine whether the prices are too high or if the rents are too low.

The price-to-income ratio puts overvaluation at up to 30 per cent, she added, but that really depends on what you consider income.

“A more encompassing definition of income, including government transfers and investment income, suggests the housing market is only 8 per cent overvalued.”

But it’s affordability that is key, she said, and various readings don’t factor in declining interest rates over the last 20 years. A “more normal interest rate environment” suggest 25 per cent, while current rates suggest fair value.

“However, current interest rates are likely unsustainable, nor are they expected to increase to more normal levels in the near future,” Ms. Petramala said.

“Over all, given the expectations of a modest increase in interest rates, home prices are likely 10-per-cent overvalued.”

---

BTW, Teranet now has the prices at 54% higher than summer 2005.

www.housepriceindex.ca/
 
Same old dirty game with this overvaluation article. These "experts" have been saying were overvalued for decades an predict a downturn every year for decades now.

I hate the fact that so many people fall for these dirty political games and did not buy OR even sold property are now faced with much higher prices and lending restrictions that price them out of the market. These "experts" NEED to be accountable and understand what impact their reckless behaviour has on the average Canadian just trying to buy a home.

Jim Flaherty messed it up and shut the door on first time home buyers.. and also created an unbalanced market in freehold up to a mil.
 
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TorontoMike$$ said:
Same old dirty game with this overvaluation article. These "experts" have been saying were overvalued for decades an predict a downturn every year for decades now.

I hate the fact that so many people fall for these dirty political games and did not buy OR even sold property are now faced with much higher prices and lending restrictions that price them out of the market. These "experts" NEED to be accountable and understand what impact their reckless behaviour has on the average Canadian just trying to buy a home.

Jim Flaherty messed it up and shut the door on first time home buyers.. and also created an unbalanced market in freehold up to a mil.
Click to expand...

Experts are there to protect their jobs which means protecting the public.

You are here to spout off endless rants of entirely useless rhetoric with absolutely nothing to back it up but the constant jack hammering repetition of the same bogus story line.

You should be banned from this thread.
 
It would seem that this is a very serious and hot topic in this forum. I couldn't believe the number of responses to this topic, and the variety of opinion and information that everyone has to offer. Is it possible there is a bubble? There is always a possibility, and history is filled with examples of booms in real estate markets that ultimately ends in prices dropping and things changing. There does seem to be a major focus on real estate in Toronto, and I fear that the majority of the boom has come from this attention and focus. I wonder what will happen if interest fades? Is there enough industry and need for housing in Toronto in order to fuel the constant growth, or is it this growth that has fueled the potential bubble?
 
Tories’ new budget to close program giving investors path to citizenship

http://www.theglobeandmail.com/news...nvestors-path-to-citizenship/article16792106/




What will this do to the condo specuvestor market? On the surface the Tories are removing a huge chunk of demand for the disposable dorm room units that are littering our skies as of late.

I'd appreciate thoughts from the resident intelligencia- Daveto, KA1, Interested, Cdr.
 
CN Tower said:
Tories’ new budget to close program giving investors path to citizenship

http://www.theglobeandmail.com/news...nvestors-path-to-citizenship/article16792106/




What will this do to the condo specuvestor market? On the surface the Tories are removing a huge chunk of demand for the disposable dorm room units that are littering our skies as of late.

I'd appreciate thoughts from the resident intelligencia- Daveto, KA1, Interested, Cdr.
Click to expand...

CN Tower: Thanks for bestowing the honour on me.

Closing 'investor' program will not have any effect on specuvestors. Even when the program was on, it had effect, if any, on specuvestor market during the second step.

Under the investor visa program, an individual was required to invest money in a business to create jobs for Canadians and the individual had to stay invested for a number of years-- geneally, 3 years. After the stipulated period was over, an individual was free to do whatever he/she had wanted to do --- stay in business, sell it and keep the money or become a specuvestor.

Long, long time ago when I used to work in the Head Office of CRA in Ottawa, my attention was drawn to a restaurant in Vancouver that used to be 'revolving door' investment vehicle for would-be investors. An individual bought a restaurant and after the stipulated period sold the restaurant to another investor and so on. All these investors were of Chinese origin -- either from Hong Kong or mainland China. Neither CRA nor Immigration Canada could do anything -- as long various rules and regulations were followed. Once the investment in restaurant is sold, then, as a second step, money could possibly end up in real estate.

By the way Interested has just left for sunny pastures in Florida for 2/3 weeks.
 
The investor program has been closed to applicants for years. Jim just woke up.. =p

Has no impact on the market.
 
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