Are house prices going to come down?

[ZX600]

My folks are have their 1100 sq. ft. condo in the distillery district up for sale since Sept. Asking price is lower than for previous equivalent sales and no one has shown the slightest interest. How does that square with your scenario?

Bottom line as far as I'm concerned is, there's a slight chance that prices will rise at 5% over the next for years, and there's an approximately equal slim chance that prices will drop 20% in the next few years, overall in Toronto. The most probable scenario is that prices remain pretty flat. So why buy now unless you can't get what you need from a rental?

Just sold a condo for over 400k (800 sq) spadina and front in about 2 weeks, maybe they need to stage it

and the professor of the post above should fail himself for his comments

 

[TimC]

yes.....I think the prices will drop...and I'm confident that the crazy annual increases have pretty much halted because of the Fed intervention on amort periods and the lack of insurable mortgages in excess of 1 million bucks....and I've seen the effects in my area already

my house is a stroll to the Yonge subway line, north of Sheppard and the action on my street (let alone my entire area) has been borderline full retard....and that behavior as of July 1st of this year (when the Feds changed the rules) has stopped in it's tracks

I have a developer on my street with 2 brand new houses that he can't sell cause he wants nearly 2 million a piece......in an area where I bought my place 15 years ago for $244

before July 1st....developers would pay $650k without a blink to tear the houses down and build a mansion to unload a 3x the price.....and they're not making their margins now.....not even close...they're sitting on them cause they're not selling

certain locations will definitely hold their value better than others...but the practice of buying to flip is done for a while.....and I think its a good thing

the wife and I bought our house for the longterm.....pay it off....live within our means....and enjoy life...if your strategy is anything different when it comes to your home then you might just deserve what you get

interest rates have to increase....it is inevitable...they can't keep giving away free money.....and when they raise the rates homeowners with massive mortgages are gonna freak

fwiw....I bought in 1997....and I bought the house from a fellow who bought it in 1992.....he paid $259k....I paid $244k

live within your means folks....and if you wanna play the real estate game.....I'm betting that 2024 will be a good year to start again

 

[murf]

When someone presents a stupid argument ie; "it happened before so it will happen again" then yes I respond accordingly. This isn't a discussion. You have made the weakest most futile attempt to discuss this and I honestly don't even know why I bothered responding.
And further, the US just isn't printing money, it is printing sh*t loads of money! To the detriment of their economy.

Ya cause ignoring past events isnt stupid lol.

 

[SunnY S]

My business prof said something very similar but also concluded that buying a house right now is a piss poor idea because there is a huge chance houses will drop 10-30% soon. I forgot his reasoning...and for that I will probably **** up my exam on Wednesday =(

I've been hearing this crap for years from all the drum bangers (builders, real estate agents, etc). And, if and when it finally does, they will say "i told you so". lol.

For the past 5 years, when I tell people how steady/busy we are (our job is somewhat connected to new home building), they always say.... "but next year the bottom will drop out"

Pffffft. Havent seen it fully yet.

Sure, one day they might drop. But guess what? they will bounce right back again. Thats the cyclical nature of the real estate market.

 

[OpenGambit]

I would expect to see some movement in interest rates before meaningful movement in the prices of the housing market.

because right now, people can afford to just not sell if the price isn't right - thats why you see volumn drops but not pricing drops.

 

[Red_Liner740]

My moms house has been on the market for 6 weeks now with no real interest on it. Good desireable neighbourhood, house is priced decently and nothing.

Most likely NOW the people who are buying houses are the type that are tire kicking unless a great house for a good price comes up. The housing market will pick right back up come spring time unless a drastic measure is introduced between now and then, like a hike in interest rates.