Getting a mortgage while real estate is crashing

[trent]

Why would anybody get a mortgage to buy a house in Canada now, that real estate prices are crashing across Canada? Please share your thoughts, because I cannot find a single good reason to do that?

[Canadian]

Originally Posted by trent

Why would anybody get a mortgage to buy a house in Canada now, that real estate prices are crashing across Canada? Please share your thoughts, because I cannot find a single good reason to do that?

I think that there is always somebody who thinks that real estate has reached a bottom, and prices will rise. Other people are not so sure if the bottom has been reached, however they are willing to tolerate 10-15% decline in the next years, as long as they believe real estate values will rebound.

[Steven]

I don't think that the Canadian real estate is crashing, at least not yet. People buy houses for 2 reasons - shelter and investment. I don't think that there are many real estate speculators left out there, however there will always be people that need shelter.

[bronto18]

The condo prices will go way down. So many units were bought from investors. If you happen to walk around a recently build condominium you cannot miss the FOR SALE and FOR LEASE signs around the building.

[trent]

Not only condos, but all housing prices will go down big time. I won't be surprised if the median price reach pre-boom 200-2001 levels or even lower. It's foreclosure time!

[bullish]

Originally Posted by trent

Not only condos, but all housing prices will go down big time. I won't be surprised if the median price reach pre-boom 200-2001 levels or even lower. It's foreclosure time!

Again, wishful thinking from somebody who never owned a home and most likely never will.

[trent]

Originally Posted by bullish

Again, wishful thinking from somebody who never owned a home and most likely never will.

But I will . I might even come and buy your overpriced house when the price goes down 50% from here

[Canadian]

Originally Posted by trent

But I will . I might even come and buy your overpriced house when the price goes down 50% from here

Just a few months ago I thought that the real estate in Toronto will see a decline of maximum 30%, but now 50% decline seems quite reasonable with the complete lack of credit, buyers and fools to buy into the deflating bubble.

[bullish]

Keep dreaming guys, in a 6 months the economy will be much better and many people will be sorry that they didn't buy until house/stocks were down.

[heyjude]

Originally Posted by bronto18

The condo prices will go way down. So many units were bought from investors. If you happen to walk around a recently build condominium you cannot miss the FOR SALE and FOR LEASE signs around the building.

That's true. I see a lot of houses around where I live, are FOR Lease. I wonder if the owners want to sell them but are waiting for the market to recover and want to lease them to cover their mortgage payments in between...