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Toronto housing as sales drop 44%..Trouble ?

 
sgtdjones 2017-06-22 19:15:44 

New data suggests the rapid decline in Toronto home sales is accelerating, and at least one housing bear sees a Canadian real estate correction of up to 40 per cent coming.

The country’s largest housing market took an abrupt turn from record highs on the heels of Ontario’s 16 measures to cool housing, with sales falling 20 per cent and new listings soaring almost 50 per cent across the Greater Toronto Area in May.

John Pasalis, president and broker at Realosophy, has crunched the early numbers for June and sees a “troubling” plunge in transactions.

“People are just pulling back, it was a really wild swing,” Pasalis told BNN in an interview Monday.
“Who knows where it’s going to go. A lot of this is driven by market psychology.”


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sgtdjones 2017-06-22 19:16:36 

Snoopy ..come en with ya analysis?

 
sgtdjones 2017-06-22 19:20:56 

CREA also released results Thursday for May and found the number of homes sold via Canadian Multiple Listings service Systems fell by 6.2 per cent from April, the largest month-over-month percentage decline since August 2012.

May sales were down from the previous month in about half of all local markets but the large national decline was driven by a 25.3 per cent month over month decline in the Greater Toronto Area. Activity was down across the GGH region, including Oakville, Milton, Hamilton-Burlington and Barrie.

 
SnoopDog 2017-06-23 10:38:34 

In reply to sgtdjones

The whole thing was simply unsustainable Bro.

You have the absurdity of million dollar homes in Toronto which are basically shacks. Five years ago that million dollar shack couldn't even get offers of $500K. So in five years the equity in a shack went up by half a million dollars. You tell me if that's is not an absurdity?

The problem started with the low interest rates on mortgages coupled with the high demand and low supply for new homes. The condos and new sub-divisions went up in record numbers. Put down 20% and your mortgage is covered and insured by CMHC. The nouveau riche Chinese and Russians speculators saw opportunity to buy up new condos and homes for cheap, flip them and make $200K profit or sit on them and rent it out. That drove up prices even further. Then you had locals who wanted to sell but didn't list because they are waiting for the perfect time to cash out. That drove demand up even more.

One of my friends who works for one of the big banks told me that the average qualifying combined income for a young couple looking to get a mortgage for a first home in Toronto is between $180-200K a year. It's virtually impossible now for young people to own homes in Toronto.

So the gov't had to spoil the baby's milk. They are now taxing foreign buyers (as they should have done a long time ago). And the banks are tightening up on lending. Higher interest rates and stricter qualifying criteria.

There's definitely a correction happening. I don't think it's a crash however. Sellers have to be realistic now. The buying frenzy is over and they will have to be patient and consider any good and reasonable offers.

Let's see how it plays out into the last quarter of the year.

 
SnoopDog 2017-06-23 10:47:32 

In reply to sgtdjones

Unlivable beach house sells for a million dollars.

 
sgtdjones 2017-06-23 10:53:32 

Ah gats two trini friends in Toronto dem bought a year ago last nite dem say dem is worried.

One live in Markham the other in Mavis Road or something like that. They came up from T&T
based on the entrepreneur program by Canada Immigration.

They must invest so much money for so long in business. They are from a wealthy family back in
T&T but they are concerned about a crash like Calgary.

Ah will tell then to hold steady and as you say let's see what's gonna happen.

Ps

Dem gals in Regina sumting else dem bring their father truck with a mattress in the back.
You didn't tell me bout dis snoopy, so it's ya secret huh? lol lol lol

Ah met dis mixture of Polynesian and Aussie from Brisbane, she lives near the GABA , loves
cricket. Ah still trying to figure out what this tall good-looking woman doing in Regina.

Listen nah she is 6ft 4 in with an olive tan,long black hair etc, me ah 6ft 8in we make a great team on dat
dance floor . Ah was showing her some of dem Trini moves ah la bravos. If you were
here ah would borrow ya BMW , lol lol lol

Dis is one ya take home ta mama.

lol lol lol

 
SnoopDog 2017-06-23 10:56:57 

In reply to sgtdjones

Listen nah she is 6ft 4 in with an olive tan,long black hair etc


Buy a ladder Bro. lol

 
sgtdjones 2017-06-23 11:02:42 

In reply to SnoopDog

Ah is 6ft 8in so ah still looking dong on her.

What a body that wouldn't quit. Dem lonnnnnnnnng legs tsk tsk.

She told me she can beat me up, she into martial arts etc. Aussie cop training in Regina.

She wants to visit T&T when the aussies cricket team plays in POS.

cool cool cool

 
SnoopDog 2017-06-23 11:06:55 

In reply to sgtdjones

She told me she can beat me up


Any woman that says that is a freak in the bed Bro. big grin

Get yuh dirty laundry list ready when the time comes. lol

 
ray 2017-06-23 12:40:56 

good thing my cuz did not buy a new home last year...he would have overpaid

 
sgtdjones 2017-06-23 13:06:36 

In reply to SnoopDog

Any woman that says that is a freak in the bed Bro. big grin



Dem Trini omen in Toronto did dat to you huh ?

lol lol lol

She gats handcuffs big grin big grin big grin

 
googley 2017-06-23 13:43:44 

In reply to sgtdjones

Ah is 6ft 8in so ah still looking dong on her.


who dat? Socafighter or Chin?

lol lol lol lol lol lol

 
JahJah 2017-06-23 13:54:26 

In reply to sgtdjones

So how come yu not a famous hoops man or fast bowler?

Wukliss rass. big grin

 
sgtdjones 2017-06-23 14:19:20 

In reply to JahJah



I gats five friends in the armed services that are taller dan me swede Olga zsa zsa.

I am the brainy type just a fan of cricket an soccer.My heros were Gray and Bish but saw what injuries did to them.

I am a wukliss rass. razz razz razz

Well I was in Goteborg fer two weeks and turned heads based on my height.

 
Dan_De_Lyan 2017-06-23 14:42:04 


it is called transfer of wealth peasant mortgage owner

 
Bigzinc 2017-06-23 15:34:53 

In reply to sgtdjones

The market was ridiculous. A friend bought a house, lived in it for 2 years then sold if for a 200 K profit. Houses in my street were selling days after being listed for 100K over asking. Regular folks cannot hope to buy a detached house in this market.

Montreal is now heating up as foreign buyers head east.

 
Dan_De_Lyan 2017-06-23 20:23:49 

In reply to Bigzinc

Whats gonna happen to the recent buyers at the top of the market....carnage.


They were tricked by that carrot.

Peeps who cashed out are laughing now.

 
Darkness 2017-06-23 22:42:54 

The correction started in May 2017 and will last about one yr. The drop may be as much as 30% in price from peak in April 2017.

After one year the prices will level out. In five yrs prices will be back where they are today and in 10 years higher than at the peak in April 2017.

Toronto and the GTA is an interesting market, let me explain. The high tech industry all over Canada is growing very fast and Toronto is becoming the capital of Silicon Valley North.

The tech sector is growing so fast that there is a severe shortage of engineers in the tech sector in Toronto and the GTA. The Canadian government is looking at reducing work permit processing time for skilled workers in the tech sector from six months to two weeks and that should happen in July this year. The jobs created are very high paying jobs and governments at all levels (Federal, Provincial and Municipal) and universities are making a concerted effort to make Southern Ontario the AI capital of the world and its working so far.

I have traveled the world for work and play and even though Canada may not be the top in some areas when you look at the whole package, Canada is the best place in the world to live and this is our biggest drawing card and what attracts the best, the world over.

 
Dan_De_Lyan 2017-07-18 18:38:39 

In reply to Darkness

Good takw....but lets see the fallout

 
ProWI 2017-07-18 18:47:22 

In reply to sgtdjones


Buyer's market?

 
imusic 2017-07-18 19:24:27 

15% foreign buyers tax had the desired cooling down effect. Market is merely adjusting. People still want to buy. But foreign buyers will now look at Montreal, Calgary, and Edmonton. Or....as sellers and realtors in vancouver became more creative...they lowered the selling price by 15%

Won't see insane multiple offers for delapidated houses at outrageous prices anymore. But Canada....and in particular Toronto and Vancouver...remains a destination of choice for people worldwide with money.

In addition, the housing market cool down curbs the insanity of making it entirely unaffordable to live in these cities.

The low looney also makes it attractive for foreigners to invest in a relatively stable, liberal democracy.

This already happened in Vancouver....not to the same extent though.

Other thing....market for detatched houses may be down....but the condo market is still pretty hot. Especially pre sales. People like the certainty of knowing the price is the price...even though they're buying off of a floor plan.

Win Win

So much so that Bank of Canada raised interest rates 1/4% last week. The first interest rate increase in 7 years

 
camos 2017-07-18 20:07:28 

In reply to Darkness

The correction started in May 2017 and will last about one yr




that shit will last for a decade!