Toronto November house sales 50% down!

[BankAdmin]

Things are starting to get ugly in the Toronto real estate market. The first half of November saw 50% decline in sales compared to the same period in 2007. The price declined 8% for the same period, but it won't take much longer until we see even greater declines, with the speed the sales are vanishing.

How far down do you think prices will go from here, until the Toronto's real estate market reaches bottom?

[Zephyr]

The prices will go down. I don't know with how much but definitely by 20%.
With the banks giving no mortgages and the financial crisis nobody is buying houses or cars at the moment.

[bullish]

The November 2008 prices are down less than 8% versus November 2007, while October 2008 was down 13% compared to October 2007. I think this is a sign that the prices are stabilizing and they'll start rising from here.

[lanaa]

The November 2008 prices are down less than 8% versus November 2007, while October 2008 was down 13% compared to October 2007. I think this is a sign that the prices are stabilizing and they'll start rising from here.

Not so fast. The prices can't go down for only a month or two and then go up again. I think it will take the same amount of time - the prices were going up for about 5-6 years so they I think they will go down for 5-6 years

[Canadian]

The November 2008 prices are down less than 8% versus November 2007, while October 2008 was down 13% compared to October 2007. I think this is a sign that the prices are stabilizing and they'll start rising from here.

Yeah, right! Prices are far from stabilizing when sales are down in half. In fact prices have to come down a lot, in order to offset the crashing demand. Let's face it - if sales in Toronto real estate are down 50%, then nobody is willing to buy a house at this bubble levels. It's very simple supply and demand equation. If there is no demand or demand is falling drastically, then prices fall.

[trent]

Things are looking quite bleak from homeowners' perspective, but from a buyers' perspective they have never been better. I hope for another 30-40% down in the Toronto real estate, so I can buy a nice house in a nice location from some idiot who paid twice what he'll be selling for one or two years ago.

[Canadian]

I'm waiting for prices to come down significantly as well. Before that I won't bother buying. I think we are still at least 2 years away from the bottom of the Toronto housing market, as the decline in prices just started. It should be fun :).

[trent]

I'm waiting for prices to come down significantly as well. Before that I won't bother buying. I think we are still at least 2 years away from the bottom of the Toronto housing market, as the decline in prices just started. It should be fun :).

I agree that it will be fun watching over-leveraged homeowners trying to get out of the real estate market, however I expect significantly lower prices in the Spring 2009, maybe 20-25% down from where we are at now.

[bullish]

Yeah, right! Prices are far from stabilizing when sales are down in half. In fact prices have to come down a lot, in order to offset the crashing demand. Let's face it - if sales in Toronto real estate are down 50%, then nobody is willing to buy a house at this bubble levels. It's very simple supply and demand equation. If there is no demand or demand is falling drastically, then prices fall.

Let's wait for the full November numbers before making any conclusions. I'm sure the numbers will be better compared to the first haf of the month.

[Steven]

I also hope that the November Toronto real estate prices won't be much lower compared to November 2007, but with the economy in bad shape who knows.