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-   -   Does the drop in Canadian real estate market impact the price in our neighbourhood? (http://www.buildinghomes.ca/community/forums/showthread.php?t=7155)

rdx 2008-07-17 02:36 PM

Does the drop in Canadian real estate market impact the price in our neighbourhood?
 
It was on the news yestersay about the big drop in Canadina real estate market, especially in Vancouver. But, I think the impact varies from province to province, city to city, region to region.

How much impact do you think it will be in our neighbourhood?

sandviper 2008-07-17 02:45 PM

it really depends on where your development/location is?

if you are in a sought after neighbourhood you will weather the downside much better.

also the prices in the west were insane compared to here and even here is insane compared to Montreal or further east.
so they are saying this is more of a correction.
as the economy slups and interest rates no longer dropping this is the best time to lock in a preapproved or mortgage weather you buy or not.

there is talks that the next meeting on SEPT 3rd the prime rate will be left unchanged or go up .25-.50% so no more lowering since the last two dates were left unchanged when they could have and should have lowered to help our econmy out.

there is even talks that with the core inflation rate being so high and only going higher with the cost of oil and food going up so much with no downside in sight that we will be at double digit interest rates within a couple of years!! :mad:

if you are thinking of selling now is better than later.
come august the market is usually lower year over year avg.
the best time to sell is in spring where ppl could move in before school starts.

also with 60-90-120 closing on resale that means if you sell today JULY 17, 2008 the closing would normally (not always) be SEPT 17th, OCT 17th or DEC 17th.

think if you sell on OCT 1st.... 60 days would be nov 90 dec and 120 JAN

no one wants to move in the winter with cold and snow so price will be affected.

this is from what i know about the economy, inflation and interest rates.

i hope this helps you.

nick laverntile 2008-07-17 04:57 PM

Of course it will BUT does it really matter? unless you will sell off your home before you move in.

It's a buyer market now for the first time in a couple of years.

Hold on to your home; the value will rebound (e.g. inflation).

take care!:D

klieu 2008-07-17 05:20 PM

Housing Prices Drop Across Canada, But Ontario Still Strong
Wednesday July 16, 2008
CityNews.ca Staff

It's a buyers market across the country for the first time in a decade as the red hot real estate market appears to be cooling off, but there's no need for Torontonians who are hoping to make a tidy profit on the sale of their home to worry.

For the first time since 1999 the average price of a Canadian home dropped in June compared to the same month last year, but Ontario appears to have bucked the trend reporting higher than average prices.

A slowing economy and high energy costs are the likely culprits behind the slumping market.

"Last year, it was really crazy in Toronto," notes Maureen O'Neill from the Toronto Real Estate Board.

"We didn't have the inventory. What we did have was a supply and demand situation, and everybody wanted Toronto. Everybody wanted to come here."

And that triggered a huge boom.

"People were lined up to buy homes, and because prices were increasing so rapidly, everybody wanted to get into the market. They were afraid to wait in case it really became unaffordable for them," O'Neill relates.

But all that's changed.

"Consumer confidence is a little bit lower. They're starting to say, hey, you know, I don't want to get into a multiple offer situation. I'm going to take my time. And because we have a lot of properties out there now, they can afford to do that," she points out.

New buyer Steven Carter, pictured above in the white shirt, is glad he waited.

" I wouldn't have bothered last year. It was too crazy," he claims.

"I had friends who bought last year," Carter adds.

"I don't even know if they're still together some of them. It was very stressful last year," he says, laughing.

Multiple Listing Service (MLS) reported a 0.4 percent drop in the price of the average residential property in June to $341,096.

And on Tuesday the Canadian Real Estate Association said the number of new listings across Canada in June rose to 56,639 - a 6.2 percent increase from the same time last year - but the sales of existing homes on the market dropped by 15 percent, leaving an excess amount of properties on the market.

The nation-wide drop is attributed to the decline in the real estate market in Calgary and Edmonton where housing costs shot up dramatically in a short period of time.

"Some of that is coming in cities where prices had gone through the roof in the previous one or two years," Avery Shenfeld, senior economist at CIBC World Markets, said. "So we have to take small retreats in some of those markets with a bit of a grain of salt."

But Toronto is safe - for now.

" "I don't think Toronto's going to be touched just because of everybody wants the urban centre right now. So I think Toronto will kind of not feel the pinch," O'Neill beams.

secretgarden 2008-07-17 09:15 PM

The slowdown doesn't seem to affect certain segments, such as mid-to-lower market space starter homes. 1500 sq ft freehold towns in my area (Yonge & Hwy 7) are going for 350-440K, and are usually sold within two weeks. Any property along public transit lines is also very hot, thanks to the high gas price. Recent annoucement of TTC's extension to Vaughan Corporate Centre definitely helps properties in the area.

rdx 2008-07-18 10:16 AM

Vaughan Corporate Centre
 
Quote:

Originally Posted by secretgarden (Post 67074)
The slowdown doesn't seem to affect certain segments, such as mid-to-lower market space starter homes. 1500 sq ft freehold towns in my area (Yonge & Hwy 7) are going for 350-440K, and are usually sold within two weeks. Any property along public transit lines is also very hot, thanks to the high gas price. Recent annoucement of TTC's extension to Vaughan Corporate Centre definitely helps properties in the area.

Do you know where the Vaughan Corporate Centre exactly will be (what intersection)? :)

petetownsend74 2008-07-18 11:14 AM

jane & Hwy 7


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