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  #1  
Old 12-04-2008, 04:37 PM
BankAdmin BankAdmin is offline
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Default Toronto real estate market crashes in November!

The TREB has just released their November 2008 sales numbers for Toronto so let's have a look.

In Toronto (416 area) the sales were down from 3,426 in Nov 2007 to 1,523 in November 2007. This means that the sales declined 56%!

The average price in Toronto declined from $433,859 in Nov 2007 to $390,225, for a cool 10% decline!

The 905 code sales weren't that bad compared only to 416 sales. The sales went down from 3,887 to 2,117 year over year, for "only" 46% decline. The average price in 905 area was $353,012 down from $358,391 recorded in November of 2007.

The Toronto listings on MLS rose from 18,309 to 27,037 year over year, which is 32% up.

The TREB continue with their laughable comparisons of 2008 prices with 2006 (the prices rose marginally between 2006 and 2008), but I suspect soon enough they will have to move back to 2005, then 2004, etc. I guess they'll stop only when they reach the last century .

Here is a quote from the actual press release:

Quote:
“Homeownership in the Greater Toronto Area continues to be an affordable, stable and secure investment,” said Ms. O’Neill. “Home buyers and sellers should be confident about their bricks and mortar investment which provides shelter and a place to raise a family.”
Now there are several inaccuracies in this statement. First GTA homeownership is not affordable at all, second I don't see anything stable about investment for which the demand went down by over 50% year over year, and prices are down over 10% (416 codes). To put this number in perspective almost anybody who bought with less than 10% down (and this was the majority of house buyers in Toronto) since November 2007 is now with negative equity and owes more to the bank than their house is worth.

Here is another quote worth reading:

Quote:
“While homeownership offers immediate benefits and long term value by way of equity, it also provides tax benefits over time,” said Ms. O’Neill. “If you bought a house five years ago, it would be worth more than 20 per cent more today.”
Whoa, 20% up that almost makes up for the inflation during these 5 years, or does it? If you compare the average monthly gold price in October 2003 (5 years ago) and in October 2008, you'll find out that the price rose from $378.92 to $754.60 which is 99% (source: http://goldinfo.net/londongold.html). Make your own conclusions.


You can read the TREB press release here:

http://www.torontorealestateboard.co...8/nr120408.htm
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  #2  
Old 12-05-2008, 03:27 PM
Canadian Canadian is offline
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Of course TREB have their own agenda, and they are trying to prop the crashing real estate market with anything they can, which in this case is moronic comparisons with prices from 2006. Whatever they say is not important, and it won't stop the market from falling.
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  #3  
Old 12-08-2008, 03:39 PM
invest invest is offline
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Quote:
Originally Posted by BankAdmin View Post
The TREB continue with their laughable comparisons of 2008 prices with 2006 (the prices rose marginally between 2006 and 2008), but I suspect soon enough they will have to move back to 2005, then 2004, etc. I guess they'll stop only when they reach the last century .


http://www.torontorealestateboard.co...8/nr120408.htm
I like that. Who will they fool with this report. This price comparison is inadequate. The truth is the real estate market is going down whether we like it or not. If you bought your house to live in it, not for investment there is no reason to panic.
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  #4  
Old 12-08-2008, 05:02 PM
Jason Jason is offline
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It looks like that the Toronto's market is in for some pain in the next few years. I'm really surprised that it took that long for this to happen.
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  #5  
Old 12-09-2008, 03:08 PM
bullish bullish is offline
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10% decline, so what? The prices are still higher than 2006 and I doubt they'll ever go below the 2006 levels. I think many people on this forum are missing on an excellent buying opportunity in Toronto. In a few years the real estate here will be significantly higher, so the time to make a decision to buy is now.
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  #6  
Old 12-09-2008, 06:21 PM
trent trent is offline
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The Toronto market is going down, and no amount of wishful thinking can change that.
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  #7  
Old 12-19-2008, 07:46 PM
dreamy dreamy is offline
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Default Do you think we will see as many foreclosures in Toronto comparing to US

Nothing good for the real estate market in the near future... Too bad really, some people took big big mortgages... Do you think we will see as many foreclosures in Toronto comparing to US?
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Old 01-05-2009, 02:49 PM
investor investor is offline
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Quote:
Originally Posted by dreamy View Post
Nothing good for the real estate market in the near future... Too bad really, some people took big big mortgages... Do you think we will see as many foreclosures in Toronto comparing to US?
I don't think we will see many foreclosures in Toronto. I am proud to say that Canadians are smarter and didn't got in too deep in debt. We will definitely see slowing down and some foreclosures but it will be not as bad as it is in US.
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  #9  
Old 01-07-2009, 03:16 PM
Steven Steven is offline
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I don't think it will be as bad as in US, but I still think that foreclosures will be high, as many Canadians have used lots of leverage and have borrowed more than they can repay.
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  #10  
Old 01-08-2009, 03:16 PM
bullish bullish is offline
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Quote:
Originally Posted by Steven View Post
I don't think it will be as bad as in US, but I still think that foreclosures will be high, as many Canadians have used lots of leverage and have borrowed more than they can repay.
Do you have any stats to backup what you said? What makes you think that Canadians are carrying lots of debt?
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