Toronto Housing Prices Collapse - Down 15% from Last Year

if this is really true, then I am ready to buy a few for investment purposes.. but the reality is a one bedroom at college park is still going for 400k and has multiple offers..

nice guess jen, it's listed at $549k on their website...3br at pape & dundas

i hope this + the oversupply of condos makes it easier to get a place in a few years

Hey 'jack', keep drinking the cool-aid. Me, I'll wait a year or two to enter the market. It's not like we haven't seen this movie before.

F Warren Buffett. Easy to make money when him and other asset managers in on countless IPOs/startups not available to the public in which they are already in the black from the getgo.

@jerrold
how do you define spectacular?

I had $110,000 for a 2 bedroom condo, fix for 6 years with 4.75%. (about 900 square feet)

I got 2 overall. If it falls for about 20 to 35% around GTA, I'll get another one. I'm preparing for a downpayment of 20% for a $350,000.

I'm in a 'Expansion mode' in 2009. Stocks is a good buy too! A lot of them are bargain.

Jack, I don't think YOUR tax money was used to bail out US banks. Was it?

This recession -- if we can call it that yet, was not created by the "morrans running the banks", it was ultimately created by the morons running the central banks, who were too agressive with cheapening money, as well as the regulators in the US (and elsewhere) who allowed financial esoterica to hit the mainstream unchecked.

Real estate bubble? Not really. It was a credit bubble, and you can't deny that it's bursting. Housing will just return to more of a long-term norm of 3x earnings.

Condo prices, particularly in my area, have remained consistently high and have really only hit a plateau with the recent market issues.

opensource, your optimism in the face of a global real estate bust is impressive!

*Cough* Told you so.

http://www.greaterfool.ca/2008/10/18/sol-in-the-gta/

Average house prices mean nothing. Reality is that condo prices are falling faster than houses. (We built the most condos per year for the last 5 years in North America). Transactions are lower than last year but still on pace for the second best volume in TO ever. Prices are down for houses by 5% and property is sitting longer if it is not in great shape. Number of places available was down 3% this month and inventory looks to have peaked.

We will see a softening of prices but it won't be as bad as the US for several reasons (i) we did not see the run up the rest of the world did...Toronto increased by about 70%, USA on average 150%, UK 350%, (ii) financing was less available than in other countries (thanks to our oligopolistic banks) and (iii) yield on most properties are in line with risk (most places can be rented out for 6% yield...which is in line with historical premiums to amount earned on deposits)...

So if you see that place you want try to low ball it but don't wait for a 40% decline this time.....

please don't ignore location location location - housing in prime areas with top amenities has only leveled off. If you bought intelligently (ie: good area, good builder, reasonable bid) then you're probably as happy as I am right now with the markets.

@ O. Terry, dunno about the US but anyone who thinks it's cheaper to rent than own right now should line up with my tenants to help pay my mortgage off in rental income, thank you :)

I think 30% is conservative. Once the nice weather returns people will not want to live in houses and condos anymore--the entire market will collapse and never recover.

it is never cheaper to rent than to own..when you rent, you don't build equity, period.. when you sell your primary residence, you don't pay any tax.. whereas the same money you keep in the bank, you have to pay tax on interest.. when you have built up enough equity, you get a line of credit at prime + rate, not 24% like your credit card...then the interest you pay when you leverage your line of credit to invest is tax deductible.. use that to reduce your taxable income

I rent a condo for $1200.

If I am to buy that same place(270K)

I will be spending more than $2500 in mortgage, maint, taxes, not to forget I would yank about 70k out of my savings for a downpayment and other RE transaction expenses.

I prefer to throw the $1300+ difference in the bank.