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Cold outside, but no chill in sales

CAROLYN LEITCH

From Thursday's Globe and Mail

Latest comment posted at 10:52 PM EDT 19/02/08

The Toronto real estate market shows no sign of slowing down, even in the dead of winter -- typically a slow season for home sales. Bidding wars are still common in the city centre, as agents lament the lack of product. ...Read the full article

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  1. Former 2 Time CIBC Staffer from North Vancouver, Canada writes: Canadians are so smug about their precious real estate holdings... do they really believe they are immune to what's happening in the US? I may not have like Trudeau's politics, but he was dead on right when he described us as the mouse and the US the elephant... it's just a matter of time... We're going to see big declines here as well. Articles like this just confirm it.
  2. bill k from toronto, Canada writes: People simply do not want to believe the obvious facts housing is and will continue to drop in Canada. Just like in the US people said housing will not go down and all the many reasons why it could not. Some places in the US has seen a 50% hair cut and certain areas in Canada will see that happen. POP......what was that?
  3. Abbie Normal from Ottawa, Canada writes: People speak of real estate as if it were something that is bought like stocks. In the long term, housing prices will always go up along with everything else. There may be short term losses but as long as supply is greater than demand it will hold its value. After all, if you want a house in X neighbourhood, what choice do you have? What might happen is that no one has an interest in buying - which simply means that if you want to (or need to) sell you might have to cut your price. But as soon as demand picks up again the prices will start where they left off. There has only been one contraction of the market in recent memory here in Ottawa and that was short-lived. For my part, I didn't hesitate to buy a house when I returned to Canada this summer - though it might not rise 20% a year for the next while, it will certainly hold its value. I don't have a mortgage so I don't have to worry about interest rates going up. The house that cost 400k this past summer might not be worth 500k next year, but it will not be worth 300k either.
  4. jeff peters from Canada writes: The first two obviously don't have much economic knowledge except what they watch on Fox. The Canadian market and economy for that matter has been less tied to the US now for quite some time. Unemployed borrowers here haven't had 50 year mortgages dangled in front of them and so you are not seeing the loans losses like the US has created. Our sub prime meltdown has been for the most part by banks investing in these portfolios from the US not home grown losses.

    My house in the beach area of Toronto has gone up in value every year since I moved in 7 years ago. I laugh at you guys who write every year "it's about to POP". It I didn't jump in then, where would I be now? Are you guys still living in your parents basement or what?
  5. Ian Gunn from Minneapolis, United States writes: Well said Jeff Peters.

    There will always be cycles. As Canada enters into this lower cycle, it's sitting VERY nicely. Surplus in almost every government in Canada, taxes being lowered (still not enough, but getting there), healthy economy, resources in good to high demand and for the most part high confidence (except the occasional individual here).

    It's interesting how we got through the last slow down with a VERY low CDN$$. Now look at the $$, Canada is indeed firing on ALL cylinders. Though it may not be as strong as last summer, they're still all firing.

    To the article itself. Good for the folks in TO. A nice strong real estate market despite what Mr Miller has done.
  6. brokeback mountain from Canada writes: "Mortgage rates fell earlier this week after the Bank of Canada cut its key lending rate"

    which bank? i did not see that.. or did i miss that?
  7. Pat Fastard from GLEEVILLE, United Kingdom writes: DUMB de DUMB DUMB DUMB. Yes with mummymoney pushing the market we are just seeing the beginning of hyper inflation in the housing market 10-20-30-40% increases ayear! Party Time
  8. PG Cochrane from Toronto, Canada writes: I don't see any obvious price declines in Toronto. Most of the price gains are courtesy of a small number of very coveted neighbourhoods mainly centered around Yonge St. anywhere north of Bloor just as the article says. And those properties are worth every penny IMO because of a supply/demand mismatch.

    Most other Toronto neighbourhoods and suburbs have had much slower growth and so I don't think anything is out of whack with regards to prices.

    No speculative building is allowed here, investors are required to put down significant down payments on investment properties, population in the area is going up, as is average income even though it is mostly skewed to the wealthier crowd who can in turn buy 2nd properties.
  9. web warlock from Toronto, Canada writes: Many of these bidding wars are engineered by the seller, of course. They put it on the market at a low price and then refuse to accept offers until a certain date. Then they cook up a few offers to raise the price. Steer clear of bidding wars; don't bid unless you want to pay through the nose. I don't think Toronto is in a bubble. Prices may drop very slightly but it won't be the same as in the US, our banks have been more responsible. We will get fallout from the recession in the US; decoupling is a myth. And so things may just level out here for a long time. I don't think if you wait a year you're going to be getting 20% off like in the US. And those houses in the Annex are worth every penny; people pay $1000 plus just to live in the basement in that neighborhood.
  10. Tyler Williams from seattle, United States writes: Interesting.

    The news report is about house prices in Toronto neighborhoods, and yet it takes just four posts for somebody to somehow bring up FOX News.

    Okay...

    Maybe they should write something like a corollary for Godwin's Law.

    Godwin's Law can remain as it is,
    as Godwin's Law of Nazi analogies,
    wherein as any online discussion grows longer, the probability of a comparison involving Hitler approaches 100 percent.

    Niwdog's Law
    (that is Godwin spelled backwards),
    as in Niwdog's Law of Foxnews analogies,
    can be proposed wherein as any online discussion amongst Canadians of things Canadian grows longer, the probability of a comparison involving Foxnews approaches 100 percent.

    . . . .
  11. Clark The Mighty from Canada writes: Invest in dirt and you'll keep your shirt.

    Subprime drama is not as bad as the media in the US makes it out to be.

    House prices there drop 15%...whoopdedoodledoo... after rising 50%.
  12. Paul G from Toronto, Canada writes: Where are all the Chicken Littles who posted two weeks ago that real estate was crashing???

    In particular one name Proud Canadian? He thought I was a real estate agent... but apparently if I was one I'd be busy looking for product to sell.

    ...
  13. Luke R from Toronto, Canada writes: Great news! Now more young Canadians won't be able to afford a home.
  14. Andrew la Fleur from toronto, Canada writes: Speaking as a downtown Toronto Realtor, I agree with this article: there simply are more buyers than sellers. This has been true for quite some time now. Unfortunately, as much as the bubble crowd would love to finally get it right after 10 years of predicting a burst, the market fundamentals are still strong: lots of jobs, lots of immigration, cheap money (low interest rates), high rents, and relative affordability.

    Are we totally immune to a US recession? Of course not, but the fact is none of the numbers are pointing to a dramatic downturn any time soon. It might happen, but there's no data to suggest a change is imminent.
  15. S OConnell from Canada writes: Just curious, why is this story still up and taking comments, while this (theglobeandmail.com) later less positive story is taken off the main page after a couple of days?

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