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Topic starter
22/04/2021 9:44 am
Notice the great decline in prices after the 2008 Great Recession in the USA.
22/04/2021 10:35 am
David, tough to buy a house in Canada?
22/04/2021 10:35 am
that`s very interesting ......AND well done
Topic starter
22/04/2021 10:46 am
Average house price in Toronto is now 1.2 million. My house has tripled in value over the last three years but no point in selling as I need a place to live.
22/04/2021 1:49 pm
Increase in prices are the highest in Europe in Norway, Poland and The Netherlands.
Topic starter
22/04/2021 5:31 pm
Hi Bob,
New housing is continually being built but is not affordable for younger families. If you already have a house, you can readily sell as there is generally a bidding war with selling prices higher than asking in most cases. Rental rates have also skyrocketed so there are a lot of 30s age group back living with parents. Prices are cheaper in smaller towns generally and young families wanting housing have either a long commute or need to move out of the city. Today's Toronto Star says 1/3 of Toronto home buyers are moving out of the city. Covid seems to have made things worse.
interest rates are currently low, around 2.5 percent and will likely rise in the next year or so, which will add strain on lower income earners. The Canadian Federal government is currently spending huge amounts to help those not working due to our Covid lockdown which will also cause problems when the money stops. We may have a housing surplus at that point.
John Kuvakas and John Kuvakas reacted
23/04/2021 9:45 am
In January 2021 we sold our previous home to one of those companies who buys homes. At the time we thought the offer they made to us was nutz as we never would have paid that much for it. We jumped at the offer and now own a new home in Sun City West. That real estate company put new carpet in two bedrooms and stuck a for sale sign in the front yard. There were multiple bidders and the home sold in three days for $37K more than we were paid.
So, our neighbors who have the same floor plan and whose house is also in great condition with a larger lot, but no pool, decided to ask the same company for an offer in March. Their offer came in at $98,000 more than we were paid for our house. I can't imagine what the real estate company expected to receive on the resale.
This can't possibly be sustainable.
David Green and David Green reacted
23/04/2021 12:29 pm
Hi Bob,
New housing is continually being built but is not affordable for younger families. If you already have a house, you can readily sell as there is generally a bidding war with selling prices higher than asking in most cases. Rental rates have also skyrocketed so there are a lot of 30s age group back living with parents. Prices are cheaper in smaller towns generally and young families wanting housing have either a long commute or need to move out of the city. Today's Toronto Star says 1/3 of Toronto home buyers are moving out of the city. Covid seems to have made things worse.
interest rates are currently low, around 2.5 percent and will likely rise in the next year or so, which will add strain on lower income earners. The Canadian Federal government is currently spending huge amounts to help those not working due to our Covid lockdown which will also cause problems when the money stops. We may have a housing surplus at that point.
I agree with your commentary David. There has been a tremendous amount of foreign money (including money laundering obviously) coming into Canada which has been invested in real estate. IMO the provincial and federal governments have been very aware but have done almost nothing to stop it; IMO due to the tax revenues generated. This has caused the market prices to skyrocket (as the graph shows) to the point of the average Canadian born Joe being priced out of the market. People buying now have HUGE mortgages and are currently scrambling to buy a home as the prices rise weekly (at least on the west coast, where I live). This is barely sustainable now, with an average home in my area starting around 1 million dollars.......just imagine what chaos will occur when interest rates rise! I hate to be negative but I see a crisis coming!
David Green and David Green reacted
23/04/2021 2:59 pm
Frank as I understand it people from California are moving to Arizona in big numbers because they cannot afford housing in California. As Jack said, this is not sustainable. In many parts of Europe today there are very few first time home buyers who can actually afford to buy a home. Based on many factors today, I'm glad I'm as old as I am. When I was young and just starting out, personal integrity and hard wok allowed a person to succeed....I don't see that today in our society.