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Old 05-14-2017, 02:59 PM   #1
Mover
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Toronto's Real Estate Hot market



What the $%^% is going on ? Have people flipped out of their mind buying homes and condos for more than asking price ?

This has NEVER happened in Toronto before. It seems like morons (possibly with foreign money ) are driving this increase upward. Another thought is that parents are helping out their kids by lending them money to buy that home (before they die of course)

This is my post to all those who are in the market to buy. Lets let those morons who are paying outrageous prices go and buy the place.

I, for one, will NEVER bid over asking and fuel this crazy market screwing it up for all of us buyers. It takes 2, supply and DEMAND.

So my bids are going to be lower, significantly lower from now on.

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Old 05-14-2017, 06:07 PM   #2
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1. For a very long time people have been paying above asking, in fact listing below market value is a tactic to get multiple offers above. It just so happens even more so now it is a war no matter where it is listed (within reason).

2.If you don't play this game you will never own a home at the moment so wasting time offering less.

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Old 05-16-2017, 08:48 AM   #3
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Sadly, you'll probably never find a house with that tactic. Not until the bubble bursts.
The Condo market is not as hot, especially in areas with a lot of supply and new buildings going up near by. But it's still insane.

I'll probably chill out in Florida until the bubble bursts, then maybe I'd consider moving back, but i'm not holding my breath since that might not happen.
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Old 05-16-2017, 09:46 AM   #4
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House prices are where they should be.

Toronto is a strong international city for business and education. There is no city similar in the world that thinks houses should be cheaper; especially 15-20 minutes from the downtown core.
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Old 05-16-2017, 05:06 PM   #5
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It's the spill over effect that's a problem. Crazy valuations in the downtown core are driving up valuations in Guelph and KW now. A couple years ago I was looking at income properties in Guelph and you could definitely get away with offering under asking and houses were on the market for a little while unless it was a really good deal. Now houses are listed and sold within a week and are all selling for over asking.

There are a lot of factors that a juicing the markets right now, but the biggest one IMO is that this is the effect of an extended period of low interest rates. The markets are near all time highs in terms of valuations, yet a 0.5% increase key interest would put us into a recession and half a million Canadians probably won't be able to afford their mortgage. That sounds like poor monetary policy if you ask me.

But the banks don't care because they'll get bailed out by we the people via the government if and when it all comes down, especially if Trudope stays in power.
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Old 05-17-2017, 08:25 PM   #6
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Quote:
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There are a lot of factors that a juicing the markets right now, but the biggest one IMO is that this is the effect of an extended period of low interest rates. The markets are near all time highs in terms of valuations, yet a 0.5% increase key interest would put us into a recession and half a million Canadians probably won't be able to afford their mortgage. That sounds like poor monetary policy if you ask me.
.
I agree with the above.

Lets not forget the guy to the south of us meaning Trump. Canada has historically followed US interest rates (they have to if you think about it) and Trump considers low interest rates to create a 'false economy' in his own words.
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Old 05-17-2017, 09:14 PM   #7
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I agree with the above.

Lets not forget the guy to the south of us meaning Trump. Canada has historically followed US interest rates (they have to if you think about it) and Trump considers low interest rates to create a 'false economy' in his own words.
Well they did make a small bump which we didn't follow, and they seemed pretty set for another bump next month, but recent events in the white house might have shook up the markets enough that they will shelf that hike until the fall, which is unfortunate because I felt that another hike in June would force our central bank to finally hike the rate.
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Old 05-19-2017, 01:48 PM   #8
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I will mention this. Not sure who did the coverage nor do I care because I'm not in the market for a house/condo, but I did hear mention that in Hong Kong they are advertising Housing/Condo's for sale in Toronto. Among this ad, they also mention not to worry about a 15% non-Canadian status tax as it will be covered upon purchase. This was also brought up to our lovely Liberal MP who said they are paying the tax so who cares.

Quick search gives BNN. But also read the 2nd story I'll post, it does give insight as to why you would want to move here.

http://www.bnn.ca/hong-kong-ad-offer...stors-1.753423

https://www.thestar.com/news/world/2...rspective.html
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Old 05-20-2017, 12:16 AM   #9
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Quote:
Originally Posted by Bullet Ride View Post
It's the spill over effect that's a problem. Crazy valuations in the downtown core are driving up valuations in Guelph and KW now. A couple years ago I was looking at income properties in Guelph and you could definitely get away with offering under asking and houses were on the market for a little while unless it was a really good deal. Now houses are listed and sold within a week and are all selling for over asking.

There are a lot of factors that a juicing the markets right now, but the biggest one IMO is that this is the effect of an extended period of low interest rates. The markets are near all time highs in terms of valuations, yet a 0.5% increase key interest would put us into a recession and half a million Canadians probably won't be able to afford their mortgage. That sounds like poor monetary policy if you ask me.

But the banks don't care because they'll get bailed out by we the people via the government if and when it all comes down, especially if Trudope stays in power.
BINGO! You got it! Who is the most likely to win in this you ask? Lets assume not all houses are bough in all cash, now you have a 20-30-50% bigger mortgage...Chances you cant pay are pretty small, and if you don't, they are covered, and you are out on the street. IMO this is a very well calculated plan, nothing more.
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Old 05-20-2017, 01:27 PM   #10
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As far as I know the government now makes those who wish to qualify for mortgages under current rates also qualify under a stress test at nearly twice the current rate so.... imo while some may be affected by a slight increase the truth is the vast majority will not be impacted as hard as you'd imagine. We could take a good 2+% hike and not drop a cent.

This ride as crazy and high as it is will not end anytime soon. May level off but prices are here to stay. In saying that the only things I see impacting our market is a straight forward world economic down turn (independent from the housing market) or a war, no joke.

Those things are as we say are coolers.
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Old 05-22-2017, 05:10 PM   #11
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As far as I know the government now makes those who wish to qualify for mortgages under current rates also qualify under a stress test at nearly twice the current rate so.... imo while some may be affected by a slight increase the truth is the vast majority will not be impacted as hard as you'd imagine. We could take a good 2+% hike and not drop a cent.
The stress test is clearly bullshit though, because there is evidence to suggest that what you said is not the case. For example, from a Financial Post article from last year...
Quote:
A new study out Tuesday from credit agency TransUnion shows that of the 26 million credit-active Canadians in the country, 718,000 can?t absorb a 25-basis point increase or they won?t have enough cash flow to cover their debts. Raise rates one percentage point, something not likely to happen overnight, and 971,000 Canadians end up in a cash crunch.
Yeah, 4% doesn't sound like a lot... but it's 1 roughly million people that would be put in a bad place by a 1% increase in interest rates.

Don't forget private equity lenders who are loaning money at even higher rates.
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Old 05-23-2017, 07:01 AM   #12
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People starting out have crazy debt; not just the mortgage.
They owe on furniture, travel, dinners out, travel, cars etc...even clothes. No savings, no RSPS...
Even 7 year payment plans on trucks....

It seems nobody saves for anything anymore; just check Credit Karma to see what they can buy next.

There is no question that real estate is pricey; but a little common sense would go a long way for some of these people that are border line financially.
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Old 05-23-2017, 07:31 AM   #13
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The stress test is clearly bullshit though, because there is evidence to suggest that what you said is not the case. For example, from a Financial Post article from last year...


Yeah, 4% doesn't sound like a lot... but it's 1 roughly million people that would be put in a bad place by a 1% increase in interest rates.

Don't forget private equity lenders who are loaning money at even higher rates.

I do not doubt that at all, question is.... is it due to the higher prices recently or at anytime do we have nearly 1 million borderline home owners who are unable to absorb a raise in rates? Follow me?

I would have to see who exactly those people are, need more data. For example are the vast majority of those people located in the two hot markets in the country?
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Old 05-24-2017, 01:01 PM   #14
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lol you people are funny.

there's a few good points in here, but the fact of the matter is real estate in toronto is expensive because rich people want to live here. that's not a bubble, its a high value commodity.

These prices are here to stay. houses in the west end where i grew up regularly sell in 3-4 days for 10-20% over asking and have done so for a while.

i understand the frustration, i can't afford a house here either, but being upset about it changes nothing.
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Old 05-24-2017, 04:25 PM   #15
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lol you people are funny.

there's a few good points in here, but the fact of the matter is real estate in toronto is expensive because rich people want to live here. that's not a bubble, its a high value commodity.

These prices are here to stay. houses in the west end where i grew up regularly sell in 3-4 days for 10-20% over asking and have done so for a while.

i understand the frustration, i can't afford a house here either, but being upset about it changes nothing.
Same vote. Although there are some outside forces like the articles I've linked. Although in the end it's not a biggie, but still makes living affordably here hard. I remember in high school when my parents sold their 2500sq home in Bowmanville to move into a smaller place in Oshawa. Sold it for like 275k and bought in Oshawa for 235k. Now on the street, lady sold her slightly bigger house for 635k. That's only been about 10 years. I know the 407 is having a huge affect on pricing out East and people who work downtown move out West. Even north of the city goes for 2mil+ in Klienburge and Vaughan. I think it'll be a condo life for me or renting. Either that or move out West as in Edmonton. Spending close to a million for a house when growing up you could buy a house in Durham for 300k (nice size 1800sq or so) and trying to live is just plain dumb. I know a few people who's parents helped them out but they are house broke. All they have is a house, but can't go out on Friday nights ect.
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