Sign of a slowing market downtown

[Chiggs@mac.com]

Certainly don't mean this as a doom and gloom posting but thought I'd share my experience with respect to current selling conditions...

This January, we sold our condo downtown and moved into a rental until our new unit (pre-construction) is finished. We were on MLS on a Tuesday, had 12 showings between Thursday and Saturday and had a firm offer for full ask on the Saturday.

Fast forward to September and the unit we're renting is on the market. (The owner has decided to sell and is giving us a free month for agreeing to break our 1 year lease a few months early...) It's a SW corner unit at 35 Mariner Terrace with perfect lake views. It's priced at about 460 per square foot with parking but no locker.

Anyway, today is the 14th day the unit has been on MLS and today will be only the second showing. I know the last week of August is pretty slow but I'm still surprised at just how few showings have been taking place... If this is indicative of the overall downtown market, things are certainly slowing down...

 

[androiduk]

On the street where I live near Yonge & Bloor, houses don't come up for sale very often but when they do, they're usually gone within a few weeks. 2 months ago a house near the end of the street went up for sale @ $749,000. They are now on their 3rd open house and have dropped the price to $729,000.

 

[ducati0000]

Dont think so..just properties that was somewhat over priced there was longer waiting time for a sale instead of the 3-4 day sales that occurred on hot listings..

housing is still up in Ontario..will continue since the massive take over from the USA goverment over Freddy and Fannie.


http://ca.news.finance.yahoo.com/s/...n-housing-starts-rise-august-211-000-186.html

the stock market is tanking so you will see investors move over to real estate as a alternative.Financial markets will also see a influx of investments as a more stable fund than resources .

 

[cdr108]

http://ca.news.finance.yahoo.com/s/0...1-000-186.html

Paul Ferley, assistant chief economist at Royal Bank (TSX: RY.TO), said the latest housing start numbers are good news for the slowing economy, though the bank still expects starts next year to average a little over 180,000 down from a recent annual peak in 2006 of 229,000. However, that is far better than the sharper slowdown in the United States.

"The jump in August starts provides some optimism, along with last Friday's August employment report, that the economic picture may not be as bleak as the GDP numbers implied over the first half of this year where the economy recorded essentially no growth," Ferley said in an economic note.

"However, this optimism needs to be tempered with respect to the housing by the fact that the strength in today's report was narrowly based in the volatile multiples component in Ontario. As well, the earlier deterioration in affordability will likely reassert a downward trend in the starts data going forward for the remainder of this year and through 2009."

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the stock market is tanking so you will see investors move over to real estate as a alternative.Financial markets will also see a influx of investments as a more stable fund than resources .

Sorry, but I think you're wrong on both fronts.
Niether RE and financial markets are stable. Within 2 years a slew of Alt-A and ARM mortgages get reset in the US which will add to the GLOBAL credit crisis, and by that time Canada will have tagged along.

 

[ducati0000]

Your wrong lumping USA and Canada together,of all the G8 nations Canada is best to weather the storm of a credit crunch.Housing world wide is not crashing like the US,in France,UK,Hong Kong,Japan sales are still moving at a good rate with little or no price reduction.In fact one two new HK condo projects there was large crowd camping out over two night to get first choice and my cousin who is in France working for a public relations firm mentioned price for units in good area are selling for $300,000us for a small 450 sq ft unit with bidding wars.I havent seen one project in the GTA cancel because lack of sales,maybe credit problems but not projection of slow sales.

 

[CGM]

Anyway, today is the 14th day the unit has been on MLS and today will be only the second showing. I know the last week of August is pretty slow but I'm still surprised at just how few showings have been taking place... If this is indicative of the overall downtown market, things are certainly slowing down...

You can expect to see these variances... every block is different

 

[MADEinHK]

Certainly don't mean this as a doom and gloom posting but thought I'd share my experience with respect to current selling conditions...

This January, we sold our condo downtown and moved into a rental until our new unit (pre-construction) is finished. We were on MLS on a Tuesday, had 12 showings between Thursday and Saturday and had a firm offer for full ask on the Saturday.

Fast forward to September and the unit we're renting is on the market. (The owner has decided to sell and is giving us a free month for agreeing to break our 1 year lease a few months early...) It's a SW corner unit at 35 Mariner Terrace with perfect lake views. It's priced at about 460 per square foot with parking but no locker.

Anyway, today is the 14th day the unit has been on MLS and today will be only the second showing. I know the last week of August is pretty slow but I'm still surprised at just how few showings have been taking place... If this is indicative of the overall downtown market, things are certainly slowing down...

The rate of resale condos in City Place is very high. The suite features and finishes and no locker are the main factors.

 

[ducati0000]

You cannot compare one unit to another and say sales are slowing.Again show me ONE project in the GTA that been canceled due to slowing markets,the builder may have canceled because the lender do no think the builder is "credible" but Im sure another builder with a better history will scoop it up in a heart beat.

 

[EverythingZen]

Mr. Ducati,

Housing sales in the GTA are down roughly 15% from 2007 and inventory is 30% higher. In addition, housing prices in the GTA are down this month over August 2007 for the first time in 12 years. Those stats cannot be overlooked.

The GTA as well as the City of Toronto are experiencing an orderly market correction. I don't think that this matter is debatable among reasonable minds.

What is debatable is the extent of the correction that's taking place. I welcome your thoughts on this matter as well as those of others.

 

[ducati0000]

sales are compared to ultra hot 2006-2007 numbers which was record,if compared it to the average volume the last 4 years the numbers are healthy and manageable for the current market,you forgot to mentioned average price was %3.5 higher on houses than last year with condos still showing %5-6 gains..

 

[lordmandeep]

its like if you work on commission....

Lets say you normally make 75,000 a year and one year you made 100k plus and now you made 85k.....


are you down?

yes

are you starving?

no



My point things are down put they still are above normal.