Canadian RE Bubble Bursting

[trent]

Finally the Canadian real estate bubble is bursting! The sales activity stats for July 2010 are awful any way you look at it:

Vancouver – Sales down 45% year-over-year (its’ different there :p)

Calgary - Sales down 42% year-over-year (who would have thought with all the oil sloshing around ;))

Toronto - Sales down 34% year-over-year (how can this be, after all Toronto is the financial heart of Canada and prices must reach New York, London and Tokyo)

Meanwhile listings are up significantly year-over-year.

So let’s do the math – sales are crashing, inventory is up, what do you think follows? Yep, you are right, huge price decreases are coming our way. In 2 years you can buy a piece of real estate with 50% discount from the top in the major bubbly centers of Canada. Are you ready?

[Canadian]

I sincerely hope that you are right, but I have to see a few more down months to make sure this is a real trend...

[bullish]

I see you guys are still crying that the sky is falling. Well I got news for ya, it's not. The so-called "crash" will be a 3-5% correction ending this fall.

[trent]

I see you guys are still crying that the sky is falling. Well I got news for ya, it's not. The so-called "crash" will be a 3-5% correction ending this fall.

Get your facts straight before spewing more useless garbage. The prices in Toronto (416) are down from $493,265 in May to $444,459 in July. I'll calculate the percentage decline for you, as you seem like a guy who can't do that by himself :p. The correct answer is 9.9% down in 2 months! Saying 3-5% down when we already have 10% down in a major bubbly center as Toronto, demonstrates your denial that we are in a bubble, your lack of research, and simply your stupidity. So next time do some research, before opening your mouth.

[Canadian]

The mid-August numbers are even more exciting J. Toronto (416) average price is $425,874, which is down 13.66% from $493,265 in May. This is getting ugly even faster than I thought.

[trent]

The mid-August numbers are even more exciting J. Toronto (416) average price is $425,874, which is down 13.66% from $493,265 in May. This is getting ugly even faster than I thought.

I would imagine the final Toronto (416) August average price will be around $420K, posibly less. The GTA average price will flirt with $400K. Good luck to all delusional sellers thinking September will be better :p.

[Steven]

The houses in my neighborhood (North York in Toronto) are still going up in value, and everything sells right away. The prices will never go down here.

[trent]

The houses in my neighborhood (North York in Toronto) are still going up in value, and everything sells right away. The prices will never go down here.

Just wait for the August sales numbers and we'll talk again. North York is not much different than any other part of Toronto. If/When the prices in Toronto come down by 40-50% North York will be only 30-40% down.

[Rickson9]

The bubble burst so hard that half a dozen homes in my area have listed and sold in a month for asking. Where is this bust? Sorry can't see it...Maybe you're just wrong?