Comments on: Toronto Real Estate Sales Down Over 35%, Listings Jump Over 147% In February

By: CJ Ray

CJ Ray — Tue, 13 Mar 2018 17:25:28 +0000

Nobody should trust the spew coming out of RE boards. Tim Hudak is CEO of OREA which tells you a lot. I’m not sure how a guy that imploded in politics because of his loose lips can be given a position like this. 6 months ago, he was blathering something about how dire a situation it was with the low inventory of SFHs. I notice the media isn’t beating down his door lately to get his opinion of where things are going.
He seems like a nice guy and all, and he was my MPP at one time. But, that’s about all I can say.

By: Dman

Dman — Wed, 07 Mar 2018 02:58:08 +0000

“Irrational exuberance is the psychological basis of a speculative bubble. I define a speculative bubble as a situation in which news of price increases spurs investor enthusiasm, which spreads by psychological contagion from person to person, in the process amplifying stories that might justify the price increases and bringing in a larger and larger class of investors, who, despite doubts about the real value of an investment, are drawn to it partly through envy of others’ successes and partly through a gambler’s excitement.”

-Nobel Prize-winning Yale University professor Robert J. Shiller from his book Irrational Exuberance.

By: NJ

NJ — Tue, 06 Mar 2018 19:56:13 +0000

Those 17k to 20k plus active listings are going to hit the market in coming months based on the last few years numbers…and given the slump in sales is here to stay, hope treb will have real hardtime bringing people an altered crap report each month.

By: Mmr

Mmr — Tue, 06 Mar 2018 19:20:42 +0000

In reply to C. It’s our government fault to allow this. I am not sure what other government like uk and USA do but I think they are doing a better job then ours.

By: Andreas Raujoan

Andreas Raujoan — Tue, 06 Mar 2018 19:07:50 +0000

Fingers crossed for an all-out housing crash. Yes, we NEED one. No, the “gubment” ain’t going to help underwater debt slaves.

By: C

Tue, 06 Mar 2018 18:59:40 +0000

In reply to MH.

Obviously.

Just think, in the past 12 months…..

Ontario government 15% foreign buyer tax, B20 for Canadians, change in regulations for foreign buyers at Canadian banks, federal government no longer allowing bail-outs of banks, Chinese vs Chinese in Canadian courts trying to figure out whose crooked money is whose in house sales gone sour, investigations of drug money laundering in real , enforcement of regulations in BC casinos…….and on and on and on it goes.

Every level of government and all banks know that the flood of foreign money was dirty. Who even knows where they get their 35% deposits from?

We might have had a sound banking system at one point, but I guarantee you that the majority of foreign buyers don’t have anywhere near the income to support their mortgages (supplied and guaranteed by you and I through our deposits, investments and CMHC).

And that takes us to the brink of disaster, just like the “2008 subprime housing crisis in the US”.

The new definition of a subprime mortgage–foreign buyer of Canadian real estate with borrowed down payment, no income history, no credit history, and no job in Canada!!!!!!

We are in dangerous territory, and the proof I have, is every single move the government and banks have made in the last year to stop this shit show.

I really do feel bad for Canadian families who are losing money as we speak.

By: Mmr

Mmr — Tue, 06 Mar 2018 18:49:18 +0000

In reply to dman. In ideal situation it should be. And Vancouver should be even low based on that assumption as there median income is even lower. I will say 200k for Vancouver.

By: Mmr

Mmr — Tue, 06 Mar 2018 18:44:20 +0000

In reply to MH.

It does not matter at the end of the day…as long as governments allow foreign investment in real estate people who want to buy will keep doing it from outside Canada…plus banks are main winners from housing bubble now they are acting nice guy lol

By: MH

MH — Tue, 06 Mar 2018 18:35:55 +0000

Will you look at that… things are really getting interesting:

RBC Chief Sounds Alarm on Flood of Foreign Cash in Canadian Real Estate

“We do not need foreign capital using Canadian real estate as a piggy bank,” David McKay, said Tuesday at a bank conference in New York hosted by the Toronto-based lender. “If capital is coming in to sit in a home, unproductively, and is distorting your marketplace and the livelihood of your residents — no thank you.”

https://www.bloomberg.com/news/articles/2018-03-06/rbc-chief-warns-foreigners-using-canadian-homes-as-piggy-banks

By: dman

dman — Tue, 06 Mar 2018 18:27:24 +0000

Based on Toronto median household income of $80,000 (which is generous and assuming no debt lol)

Toronto single-family median price value is $240,000-$320,000.