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House listings begin to slow down

Globe and Mail Update

Some provinces saw sales outpace new listings in September, latest CREA figures show ...Read the full article

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  1. Tories Lie Again and Again from Canada writes: G&M...Please stop reporting residential Real Estate in the business section.

    Home sales are lifestyle issues...Not Business as the bottom feeders seeking to earn a commission would have you believe.

    They rely on sentiment and hype to collect a commission for services that can be done by the home owner.
  2. Michael Peters from Vancity, Canada writes: But what about those who do not have the luxery of riding out the downturn? You know, those people who got caught up in the madness of it all and took out a mortgage that stretched them thin even then? Real estate inflation has been out of whack with real income growth for years now thanks to artificially low interest rates - thank you Mr. Greenspan and BOC. There needs to be a return to sanity. Unfortunatly this is going to cause a lot of people a lot of pain.
  3. Jonathan T from Canada writes: These downturns don't last just a few months and then 'wham bam' the next boom starts.. downturns usually last about three years...... the fact that people are 'delisting' gives you an idea of how bad it is out there...
  4. B C from Canada writes: A lot of the de-listers are going to return in the Spring since it is commonly thought the Spring is the time to sell. Too bad for them the market will be worse in 09 than 08.
  5. Mark Williams from Toronto, Canada writes: This market is ready to crash and burn. It's already crashing and burning. The most prudent thing to do at this point is follow the lead of the stock market and liquidate. Research shows that housing is always 17 months behind equities. If one can't sell (which is tough when no one is buying) best thing to do is just set the house on fire and collect insurance. I read that in a Garth Turner book.
  6. Veej Adi from Burnaby, Canada writes: All right, the correction is over! Everyone back in the pool! The run up took 8 years to exhaust itself and the correction took what... 8 weeks? What's really funny is you can google back a year and a half or so and find almost identical quotes in the US media. How stupid do you think your reader base is really? This is insulting. Stop asking the cheerleaders what they think about the state of their own industry. a) they don't know and b) they would not tell you the truth if they did.
  7. Ro Mac from Toronto, Canada writes: more funny, inventive stuff from the CREA spinarama machine.
    they're running the down market playbook now.

    why don't they talk about the 'refreshing the listing' technique being used by a good many agents to muddy the listings water as inventories rise? they're obscuring the real picture -- it won't stop the slide/crash/correction [what have you] now but they're just prolonging the pain.

    extending on Veej Adi 's comment, why doesn't the G&M actually talk to prospective buyers about their thoughts on the market instead of having CREA and agents spin ? the lazy journalism exhibited is pathetic. why is there no analysis actually carried out on the puff PR the industry craps out?
  8. adi john from Vancouver, Canada writes: G&M: Could you please stop posting these 'CREA figures'. You emphasize way too much what these real estate institutions conclude and forecast. Are you trying to help these totally non-productive individuals that make legal money directly out of people's pockets with no shame? People that are really interested to see these 'accountable findings' can rather use this link: http://www.crea.ca/public/news_stats/media.htm
    And, by the way, I think that sales by the owner AKA FSBO will be booming in the near future, and the sellers and buyers will deal directly. That will give both parties the opportunity to negotiate and save lots of money.
  9. BD Jorgs from Saskatoon, Canada writes: Year over year is such a long period in these times. It says year to year prices have increased 23% but this does not take into account that prices have actually been decreasing the last few months. Related to this, realtors, in particular, have an amazing ability to bend numbers to make the market more appealing to the seller/buyer (depends on who they are talking to).
  10. Dan Shortt from Toronto, Canada writes: I read the story this way:

    The speculators and 'flippers' who were looking to make a fast profit selling their properties at exhorborant prices are now taking them off the market to 'wait out the downturn' after seeing prices come down and realizing they aren't going to make that easy buck.
  11. Glen Carter from Canada writes: Seriously G&M. This story shouldn't be in either the ROB or the Lifestyle section. It should be in the Literary section under 'new fiction'. Or perhaps published as 'advertising'?
  12. Michael Peters from Vancity, Canada writes: Dan - don't disagree. How many flippers have financed their projects with their own cash? I'm gonna go out on a limb and say 'few.' Back in the good old days, a flipper could get a mortgage, buy a property, do the necessary window dressings to make the house look flashy, sell it, pay off the mortgage, and pocket the difference - all in a few weeks time. The interest payments on the mortgage were small change compared to the potential profit. If these guys are unable to unload their properties, their looking at big losses. How long can they afford to take them off the market and maintain the mortgage?
  13. Raphael Langlais from Toronto, Canada writes: It's not going to change anything to the faling market. Those who stop trying to sell are the guys trying to have 800,000$ for their old shack. There is no fish anymore, so they stop fishing. The real buyer are only going to buy from real seller.
  14. Mark A from Toronto, Canada writes: I second this call for G&M to stop posting CREA's rigged numbers. Why can't we simply rely on random interviews and anecdotes from people? In fact, people in these threads have quite a bit of critical insight. G&M should simply post this thread, much more insightful than numbers and facts.
  15. Chris Halford from Ottawa, Canada writes: I guess a statistician might have some input on what these numbers mean. I stand with other posters here that there will be significant pain as the people with big mortgages on depreciating properties are forced to the wall, by job loss or because they were poised to flip them (serve 'em right in the latter case). I do believe that this kind of thing belongs in ROB because of the amount of money in the real estate market and because of the root of the current economic turmoil.
  16. CallofDuty . from Canada writes: Two of our newer neighbours have had their houses on sale for over 2 months with not even a buyer coming to look at the house. We are in a prime area where we live a minute from the 401 and 5 minutes from the GO train station. Listings are down because people have been giving up. What’s the next step for a homeowner who cannot afford they're giant mortgage? We’ll have to see in the next article with the heading “Foreclosures are up”.
  17. Larry Hill from Canada writes: Michael Peters from Vancity, Canada writes: Dan - don't disagree. How many flippers have financed their projects with their own cash?

    _______________________________________________________

    I must say that I have been concerned with the proliferation of TV shows describing how easy it is to do just that. I guess the drama of a 'spec' house renovation gone horribly wrong doesn't sell ads.

    Especially when the reno is done by non-professionals.
  18. Anti Elvis from Calgary, AB, Canada writes: Prices are up 5%? Really? I assume they don't include Calgary in that equation (nor Edmonton either).

    Two years ago these same tools were telling us it was a 'great time' to get into the market..
  19. Pacific Volcano from ottawa, Canada writes: I think the flippers can now hang on there for longer than he was one monthly ago to wait out the downturn, because BOC just cut the bank rate by 75 basis point in the last month. Maybe even longer if BOC in the next little while follows the Fed's rate cut of yesterday.
  20. craig stirling from Edmonton, Canada writes: Does anybody have a link to a decent RE blog that isn't tainted with CREA-spun data? I have to agree with previous posts that G&M should stop posting residential $'s in the business section....
  21. Willard Kurtz from Canada writes: Here's another type of owner born of the bubble - middle income couple buys a modest semi-detached home in Toronto or Vancouver before the run-up, with a reasonable mortgage. 5-6 years later their home price has nearly doubled, they sell and put the windfall into a nicer (also inflated) home with a bigger mortgage at a low variable rate, all while not changing their income status much beyond annual CPI. Now that equity is going down, their carrying costs (interest, taxes, energy bill..etc.) have gone up and a recession looms raising issues of unemployment. This story is much more common than people think. Foreclosures can't happen here...maybe not to the scale of the U.S. but they are quietly on the rise in the GTA. Care to do some real journalism G&M instead of blindly quoting CREA, Klump and these self-serving pollyanna twits?
  22. If I had a million lobsters from Canada writes: Steve Wikkerink from Edmonton, Canada writes:
    The 'Market' and its 'stats' are all tracked for years and and are only taken from proven history. Who really know what will happen. what I do know is that the negativity that everyone carries right now only hurts ourselves as an economy and country. It would be a really crappy life. Is it?? Anyways why not take the proven history and stats and not jump to your own conclusions about things you clearly know nothing about!!!

    Proven history of what? This has been the biggest scam in teh last 100 years. Stupid people mortgaging 100% of their homes for cars, trucks, boats. Give me a break.

    There's a Vancouver condo project with 1100 units in trouble because 75% of the buyers were flippers who won't take possession now because they know the jig is up. All caused by you brokers. Yeah i suspect you are one or better a flipper who got caught.
  23. b W from Canada writes: What sales do they refer to?
    All I know is that conditions have changed dramatically. Last year, you could buy a house with conditions. You ordinarily had your mortgage preapproved, the inspection done within a few days and it was never contingent on sale of your home. Today, it is contingent upon both the sale of your home and financing, neither of which are now uncertain.
    In the October information for GTA, TREB noted that sales were down and listings were up. I am looking in the 905 are and note that most of the listings have not sold, even after they have reduced their price.
    As listings are always down this time of year, what would be more meaningful is a description of what the terms used mean and a comparative to last year, not just a statement like this meant to fool the naive into believing that everything is okay.
    As the first poster noted, please stop printing the hype from the people who benefit the most from the hype without any verification or analysis.
  24. Rick C from Calgary, Canada writes: Anti Elvis from Calgary, AB, Canada writes:

    'Two years ago these same tools were telling us it was a 'great time' to get into the market..'

    Ummm that would be because two years was a great time to get into the market.

    The market went up by 20-25% from '06 - '07.

    Housing prices peaked in Calgary/Edmonton about 1 year ago.

    When the market started to top out the investors and speculators starting exiting; no more profit to be made.

    That is what has driven listings up and it will take some time for that inventory to be bought up.

    The sky is not falling. Every market that takes off like the real estate market in AB did overshoots...everytime.

    The pullback is simply the market correcting the overshoot and compensating for the increased inventory from investors leaving the market.
  25. If I had a million lobsters from Halifax, Canada writes: Further you say we know nothing about it. Actually you are wrong I own 10 houses that i rent and have for years. No mortgage either. So listen up chump I know what i'm talking about.

    This is a kondratieff winter which is the miserable end to the debt cycle. As a real estate investor for many years i had to bow out for 5 years as people would bid on rental properties in my neighborhood 50 grand above asking.

    Being an expert i realized the free money was driving this and shut er down till the idiots moved on. Now it's feeding time because I'm buying 2 houses this week from the bank for 60 cents on the dollar. The same two houses i bid on 5 years ago.

    The guy went bust. So this is economics my friends not selling houses. People bought into the HGTV dream without knowing the first thing about economics. If a house doesn't pull 7% net it's not a buy - period.

    People were buying these rentals for no money down and pulling negative return because they thought they could flip em for a profit.

    So yes some of do know what we are talking about. After you're long gone I can get back to making money the right way - slow and easy. rental properties are not quick profit centres - they take 20 years to get any return.
  26. David Gibson from Hamilton, Canada writes: One is amused that the Globe and Mail's real estate stories seem to attract all the Roswell - Hale Bop - Helter Skelter posters. It must be some electromagnetic disruption caused by having to do math with cerebral equipment not designed for it.
  27. If I had a million lobsters from Halifax, Canada writes: David Gibson from Hamilton, Canada writes: One is amused that the Globe and Mail's real estate stories seem to attract all the Roswell - Hale Bop - Helter Skelter posters. It must be some electromagnetic disruption caused by having to do math with cerebral equipment not designed for it,

    Gee thanks David - another real estate agent/investor/flipper joins the conversation.
  28. O Perdana from Canada writes: Larry Hill....see the following link:
    http://www.cppib.ca/files/PDF/Annualreports/quarterlyreports/2009/Q1FinancialStatements.pdf

    Now.....lets be conservative and say since June 30'08 that the public equities paper value portion of the fund has dropped say 25% (approx. $16 Billion) and no change to the rest of the funds' investments - est. total fund value about $112 Billion as of today; also assume that total transfers of say $95 Billion. The return on these transfers since inception (say since 2000) is 2%/yr. This is simple math. DYODD.

    Carpe diem
  29. Crimson The-Red from Canada writes: uh oh... if sales start outpacing listings, does that mean that the supposed over-supplied housing market will achieve balance rather than prices crashing into a free fall.

    If that is so, that will be bad news for the renters that like to post here praying and hoping for house prices to crash to never before seen levels.

    Good on them, I like those people (renters praying for doom) as much as I like naked short sellers, and we all know what happended to the naked short sellers of VW. ouch.
  30. Dave Martino from Toronto, Canada writes: i love bubbles! i'm baffled as to why people cannot see them!

    cheap houses coming our way.

    Remember to say thank you to the greedy people when they give their house to ya
  31. Tories Lie Again and Again from Canada writes: J L from Toronto, Canada writes: Tories Lie Again and Again writes... 'G&M...Please stop reporting residential Real Estate in the business section....Home sales are lifestyle issues...Not Business.'

    Wow, what a stupid comment!!! What is real business... the stock market?
    =====

    Stupid?...For the bulk of Canadians, a home is the place you live and not an investment vehicle. If you were to flip your home... you have to move somewhere else... and unless it is to another market at a lower price... you are not any further ahead than staying put.

    If home prices fall, there will be no impact to those who are mortgage free...they still have a place to live. For those with a Mortgage and you are still making the payments... you still have a place to live.

    The notion that your house is anything more than a place to live is what has driven the economy into the crapper. So.. JL... wake up and understand that you can't pay for your vacation and your boat with your house.
  32. Dave Martino from Toronto, Canada writes: Crimson, you're comparing VW to real estate? Do you not see the real estate bubble in pretty much every country in the world? This once again shows that people in the bubble cannot see that they're in it.

    There is zero relation between the short sellers of VW and people who buy into a bubble
  33. J Hanner from London, Ontario, Canada writes: I hereby declare that the recession is officially over!!

    Everyone can go back to spending now. The good times are back.
  34. l'argent puis des votes ethniques from Vancouver, Canada writes: David Gibson from Hamilton, Canada writes:
    'One is amused that the Globe and Mail's real estate stories seem to attract all the Roswell - Hale Bop - Helter Skelter posters. It must be some electromagnetic disruption caused by having to do math with cerebral equipment not designed for it.'

    Thanks for my chuckle of the day.
  35. Crimson The-Red from Canada writes: Dave Martino,

    We do not have the same mortgage profile here in Canada as the USA. You will be disappointed that our housing market does not end up like the american market.

    The mayor of Toronto tried to crash the Toronto real estate market with his land tax grab, but he just ended up slowing the Toronto market down.

    For the lack of a total and utter crash in Toronto, the mayor truly is sorry to you Dave, he tried his best to crash the market, please forgive him and vote for him in the next civic election.

    P.S. The mayor is raising property taxes to stick to the greedy capitlistic home owners in Toronto, and he truly hopes that your land-lord forgets to pass along the cost with a rent increase.
  36. Alistair McLaughlin from Canada writes: No no. Housing just keeps going up. The real estate agent told me.
  37. lary waldman from Qualicum Beach, Canada writes: Newspapers give me a kick, something like CREO or OREO tells us something we all know and its a news story? What's up with that.

    Lary Waldman
  38. Fred Smith from Canada writes: The housing boom is over and now we are back to the normal level of house sale's like back in 2000 2001 2002 ..

    It's called back to normal and nothing to worry about ..
  39. J L from Toronto, Canada writes: Tories Lie Again and Again from Canada writes...'The notion that your house is anything more than a place to live is what has driven the economy into the crapper...'

    The economy has be driven into the crapper by the gambling witchdoctors on Wall street.

  40. Mike Glatt from Canada writes: There are a few questions which I would like to know the answer to 1) What percentage of the mortgages given in the last 10 years were high ratio (5% down) and had extended mortgage terms (35 to 40 years). 2) What percentage of the mortgages given in the last 10 years were subsequently securitized (The loan was sold to investors). By answering these questions you may get a good idea of where this real estate market could go to in the not too distant future. In addition ask yourself this question, if you were a lender in today's market and you were retaining the mortgage on your books would you be a little cautious in who you lend money to and if you were a buyer of a mortgage backed security wouldn't you want to know the makeup of the pool of mortgages you are buying and God forbid you would be relying on a rating agency to rate the pool? PS for the record according to CHMC's web site if you were buying a property with 5% down and your amortization period was 40 years you would be paying a premium of 3.35% to CMCH on top of your regular mortgage payment.
  41. Larry Hill from Canada writes: O Perdana from Canada writes: Larry Hill....see the following link I pulled up the link. I am seeing that net after operations, the return for the quarter ended June 30th is about 3.95%. For the same period last year it was about 2.78%. I see no claim to a rate of return including contributions as you have stated. You then make a lot of assumptions. With nothing to back them up. I would recommend that you read the notes to the financial statements especially Capital Disclosures with regards to fair value. To make a long story short, their auditors would make them write down the investments to the real value. And only the real value would be quoted on the financial statements. Now, granted the interesting quarter(s) will obviously be the one ending Sept 30 and Dec 31 2008. However, did you note the large holdings in US dollars? That may provide a nice currency return. I think you may very well have been looking at the Consolidated Statement of Changes in Net Assets rather than the Income Statement. I have a portfolio of 'blue chip' stocks that I invest myself. That little portfolio may be down 10%. That is without a professional adviser, let alone an entire department. I congratulate you on doing some home work, but I still see nothing to back up your conjectures.
  42. J Engel from toronto, Canada writes: Crimson - I am one of those people who have decided to rent instead of buy. I don't expect some crash of epic proportions, rather, a healthy correction in prices. Housing only has to drop around 5% over the year in order for me to break even by renting instead of buying a condo (sure I'd rather have a house but cannot afford it... even if prices drop). I'm not sure why you feel this is so unrealistic - especially considering the consumer confidence numbers of late. No matter, I suppose only time will tell who is right.
  43. S w from Canada writes: Its fun to watch how worked up people get about Real Estate! Its because everyone is an expert right!! Housing has always gone up and down... its a fact. The early 90's had the same thing. Housing went down 10-15% over a year or so and then balanced out for a few years...guess what!! It went back up again... its not rocket science people. Real Estate is always a good investment for a long term return thats very true... Flippers always have a risk and most (the smart ones) understand that. The ones who don't well they learn something. I hear conversations about Real Estate all the time and laugh at what people think they know and how it works. Its a shame so many people make themselves appear so dumb or are they?? Why don't we all sit back and watch history prove itself again... The markets going to drop for a few months yet, balance out for a few years and then will slowly increase as always! Its funny because the ones freaking out most on this blog about Real Estate are the ones that think they know so much..... 10 houses mortgage free rented out!! WOW thats awesome... good for you! Then why so bitter about the whole market?? It think this is pretty funny to see people get in a panic over this crap.
  44. S w from Canada writes: Mortgagees are can't be over 40years anymore... and the CMHC premium is a lump sum placed on your mortgage at the time the bank funds it not on every payment....
  45. Larry Hill from Canada writes: Mike Glatt from Canada writes

    To answer your first question Mike, the estimates I have seen is that about 4% of our mortgages are 'sub-prime'. (in the US it is approximately 40%).

    The other estimate I have seen is that 60 - 70% of all Canadian mortgages remain on the books of the originating financial insitution.
    (I am talking about the chartered banks and credit unions, not small 'other lenders').

    The other important point that you may not be aware of, is that CMHC guards its approval process very jealously. In other words, it is not automatic that you get the approval to issue CMHC mortgages nor is it given that you can retain it. Therefore corporately, the financial institutions that have that priviledge will not delibrately endanger it. A very easy way to lose your priviledg is to have excess claims on the insurance fund. (in other words sloppy lending)

    (I am not talking about the actions of a 'rogue' lender. That obviously can happen, but the deliquency would be tracked very quickly)
  46. b W from Canada writes: S w from Canada writes: Mortgagees are can't be over 40years anymore... and the CMHC premium is a lump sum placed on your mortgage at the time the bank funds it not on every payment...
    If it is added to your principal, then it will be added to every payment through amortization.
    To:J Engel from toronto, why does real estate have to drop to break even? Renting is less expensive than buying when you include mortgage interest, property taxes, maintenance, etc. In addition, when you buy, you normally purchase something more than you rented because of future expectations. So, you are always ahead renting versus buying if the house does not appreciate.
    If you think the RE market will go down or break even, continue to rent and save the difference between rent and ownership. Invest in an RRSP (to use as $20K of the down payment). Put the money into something safe so you cannot lose your capital and you will have a larger down payment when you buy your house later.
  47. S w from Canada writes: If it is added to your principal, then it will be added to every payment through amortization.
    True, I just meant that its not 3.95% of each payment added to the payment each month... That works out to be a hell of a lot more then a lump sum. Sorry for the confusion....
  48. Dave Martino from Toronto, Canada writes: Crimson, I actually have an appointment at 6:30 to show a property i have listed for rent. The difference is, this property has been owned by family for over 30 years. I would benefit if real estate went to the moon, unfortunately, thats not going to happen.

    The real estate market is in a huge downtrend. Crimson, people like you are in unfamiliar territory. You're better of doubling your money by taking the money in your pocket and folding it in half
  49. Oh Canada from toronto, Canada writes: I can almost gaurantee Toronto home prices will have a major correction in 09.
  50. Tories Lie Again and Again from Canada writes: b W from Canada writes: Put the money into something safe so you cannot lose your capital and you will have a larger down payment when you buy your house later.
    ======

    Do tell bw...given the events over the past few weeks...what is a safe investment that is risk free?
  51. Working Commercial but Active from Canada writes: Yes, yes, your readers know that real estate advertisements are important to the Globe & Mail and when the CREA says jump the G&M editorial department asks 'how high?' ... but if you are forced to write a story, please at least assign a reporter to it and allow a little editorial liberty. It is embarassing to see one of Canada's top newspapers repeat verbatim the CREA press releases without critical comment.
  52. Tom Ngi from Vancouver, Canada writes: 50 is the magic number. What is 50, you ask? 50 is short for the 50% decline in home prices that will bring house prices back to historical norm as suggested by the Schiller's History of Home Values graph for the US. Yes, I know his data was compiled with US housing data. The bad news, for Vancouver anyway, is that we are even more inflated, and therefore have a longer way to go down before stabilising. Come to think of it, make that 60.
  53. Daniel Plainview from Canada writes: The market is melting here in Toronto yet McSquinty's genius MPAC system assesses my property 30% higher than just two years ago. Comrade Miller will doubtless use this to hike taxes to the moon. He'll only wake up when the core of Toronto resembles that of Detroit in a few years.
  54. Daniel Plainview from Canada writes: Hey Tories Lie Again- believe it or not, people buy houses as investments. Ever hear of 'landlords'?

    Your screen name speaks to your ignorance.
  55. C D from BC, Canada writes: September news indicates summer activity. After the great crash of the fall of 2008. I will be more interested in those numbers. My stocks were doing great in August and the first week of September.
  56. double mike from Canada writes: .
    'House listings begin to slow down'

    Yeh, sure. So what?
    It seems invents one bogus measurement after another to salvage unsalvageable. Looks pretty funny really. I think they are running out of statistics though. They try something like:

    “Number of sold “Home, sweet home” sings grows.”

    “New immigrants from Alpha Centauri prefer Toronto condos.”

    “Number of buildable lots on Mars is much lower than it was predicted.”
  57. tim johnson from Ottawa, Canada writes: Someone had asked for the statistics about Canadian mortgages. There are about 6% sub prime mortgages. There are about 37% of outstanding mortgages since 2006 are longer than 25 years. For first time home buyers there are approximately 60 % opting for the 40 year mortgage during the 2006 period until it was cancelled on Oct 15/2008. These numbers do not bode well for the housing market. The big kicker is that a global recession is coming. Not one only in Canada or the US but Global. This includes Canada, US, Japan, Europe, Ukraine, Russia, Argentina, Iceland, Pakistan ..... Thing is that we are going to 9 to 11% unemployment. Most people will be forced to sell their house whether they want to or not if they lose their job. Its unfortunate that things have gone downhill so fast but such is the nature of global credit crisises. The real estate prices are going to go down fairly fast as the forecloseures start piling up. I am predicting in 3 years we will probably be at the bottom. Places like Vancouver will probably be down over 50% where as Ottawa will probably only be down 30-40% (depending on how many people the federal government lays off). Toronto could be in the 40-50% price drop category. A lot of people do not realize how many people could lose their jobs in every part of Canada. You just need to look around and almost every industry is going to take a hit in this financial meltdown. In case people have not noticed the stock market has crashed and alot of people's life savings have really diminished. I could see this coming but the speed at which it has arrived is surprising.
  58. REV eighteenseventeen from Canada writes: tim johnson from Ottawa- Do you think lowered interest rates by the Feds will have any impact on you fortune telling? Methinks that lowered interest rates by the Feds will send things the other way once again. Be watchful of rapid market fluctuations, including realestate. I believe the Feds would rather be on the inflationary side of their fractional reserve scheme, it is the only way their plan can deceive the sheeple. No gold standard=no market stability.
  59. tim johnson from Ottawa, Canada writes: The feds lowering interest rates will help but its not going to be enough. The variable rate mortgages are something like prime plus 1%. The mortgage rates will drop as the interest rates are dropped but the damage from this recession is going to be bad. Just think about all the commodities such as oil, nickel, copper, lumber, coal, uranium and zinc. All will have lower demand and therefore lower prices. The businesses will reduce production once it gets close to their cost of producing the commodity. The construction industry is going to lay off alot of people as there is a real slowdown in investment. The manufacturing industry is going to be squeezed. Remember that if the company such as Ford or GM is in trouble they will look to close plants resulting in increased unemployment. The various levels of government will lay off to keep the deficit to a minimum. The tourism industry is going to have a lot less tourists. I think the jobs issue is going to be the primary cause for all the foreclosures.
  60. Roop Misir from Toronto, Canada writes: Nice to put a positive spin to an deteriorating housing market.
  61. louis cyphre from Down below, Canada writes: If I had a million lobsters, you get to buy directly from the bank, hook us up, I think not. And, look long my fellow experts. If I purchased real estate 30 years ago, would I be in a bad way, no because RE always goes up. There maybe some ups and downs along the way, but it always goes up. If your shorting RE, then there is risk, however most of these want-a-be investors walk from there purchase and let the banks deal with the shortfall. They go bankrupt and get ready for the next cycle. This type of inexperience is what causes false values in real estate. I have worked for banks getting ride of "non-performing assets" so I have a good incite on the workings.
  62. bill k from Canada writes: Don't believe the propaganda lies from RE agents since the facts and numbers don't lie only RE agents do.

    Toronto Resale House Prices Collapse!! House prices declined throughout the GTA during the first half of the month. The average price of a GTA home is currently $353,772, down 11 per cent from $399,013 recorded the comparable period in 2007. In the City of Toronto the current average price $375,804, a 15 per cent decrease from the $441,878 average recorded at mid-October 2007. In the 905 Region the average price of a home is currently $337,671. This represents an eight per cent decline from the $365,527 average recorded during the first half of October 2007. http://www.torontorealestateboard.com/consumerinfo/marketnews/news2008/pdf/nr_1
  63. The Coming Depressionv from VANCOUVER, Canada writes: It really is amazing why anyone would BUY a house at this stage of the World Crisis. Every paper is stating a recession,depression,housing drop..and people BUY? 25 year being a realtor and I SHAKE MY HEAD!
    Look at the companies going BANKRUPT!
    The Coming Depression
  64. The Coming Depressionv from VANCOUVER, Canada writes: www.thecomingdepression.blogspot.com
  65. Dan Theman from Ottawa, Canada writes: Edmonton and Calgary went through an 18 month period of price correction during which home prices fell by about 12%. During this period of time, wages in Alberta actually went up by 7%-8% and now a house in those cities appears to be almost 20% more affordable. Hence prices are stabilizing and supply and demand are getting better balanced. Same is going to happen throughout the rest of the country, just that since waiges can't climb that much, the price correction will be closer to 20% and it will take a bit longer than 18 month to get there (probably 3-4 years).

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