Toronto real estate - Is it going to crash?

[Canadian]

Hi,

I want to buy a detached house in Toronto, but I'm priced out of the market right now. When I say priced out, I'm talking about getting a conventional mortgage with 20% down and 25-year amortization and not using some type of "creative" financing like 0% down and/or 40-year amortization.

I'm hoping that there will be a significant correction in Toronto's real estate market in the next 1-2 years, and I'll be able to afford the house I want.

I'll be interested to hear your opinions on the topic. Do you expect correction, crash, flat market, or even rising housing prices in Toronto?

[BankAdmin]

You are not alone - more and more people in Toronto are priced out of the real estate market. I completely agree with your opinion on 40-year mortgages and the no-downpayment mortgage loans. These are just ways to inflate the Toronto real estate bubble, which is already inflated a lot. Very, very soon the prices in Toronto will start a steep decline and there is no way to stop this. I'm afraid that this is a bad news for homeowners, but it's better to be aware of the realities of the real estate market, instead of living in denial.

[donner]

What makes you guys sure that the prices in Toronto will decrease? This all looks like scaremongering to me. I guess you missed the big housing appreciation, but this doesn't mean that the you should complain or that the prices are going down.

[Canadian]

Originally Posted by donner

What makes you guys sure that the prices in Toronto will decrease? This all looks like scaremongering to me. I guess you missed the big housing appreciation, but this doesn't mean that the you should complain or that the prices are going down.

I'm not complaining, just asking about opinions on the Toronto real estate market. Yes, I don't own a house and I want to buy one. Maybe I'll buy yours at a huge discount (foreclosure maybe) when prices tart crashing down...