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Old 2008-11-16, 12:00 PM
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PerfectHouse PerfectHouse is offline
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Smile Immigration will fuel growth for next 25 years, CMHC says

If we are buying long-term we should be good.

GTA demand to stay strong
Immigration will fuel growth for next 25 years, CMHC says


http://www.nationalpost.com/story.html?id=961966
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Old 2008-11-16, 11:13 PM
Rad Rad is offline
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Very good post,

Tired of an individual on this site screaming 20% down. I don't know on what bases is he talking that houses are to expensive in GTA? Average household income in Burlington is 110,000$. How much is a house supposed to be worth one annual salary, get real.
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Old 2008-11-17, 02:00 PM
ancodia ancodia is offline
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Quote:
Originally Posted by Rad View Post
Very good post,

Tired of an individual on this site screaming 20% down. I don't know on what bases is he talking that houses are to expensive in GTA? Average household income in Burlington is 110,000$. How much is a house supposed to be worth one annual salary, get real.

So true. there are a number of mis-informed people who seem to think the housing problems in the US will happen in Canada. Their fear, of course, is based completely on ignorance.

Good story here (link below). Well worth the read and does a great job of detailing what happened to the housing market in the US and why. None of that happened/is happening in the GTA. In the US, people were buying houses that were 15-20x their annual earnings which is insane. Nothing like that is happening in the GTA.

http://www.portfolio.com/news-market...l-Streets-Boom
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Old 2008-11-17, 11:05 PM
addtemp addtemp is offline
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What do you think of 75B Package ffrom Canadian Government for the Banks here.

We don't have any problem right then why 75B from tax Payers money? and Comparing the Candian Economy to US its of similar magnitude ...
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Old 2008-11-18, 11:11 AM
Rad Rad is offline
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Why?

Because in this economical uncertainty Canadian banks don't want to lend money. It's not that they don't have money, it's they don't trust no one with it. So government has to provide some assurance for the banks.
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Old 2008-11-18, 01:36 PM
Nick99 Nick99 is offline
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Quote:
Originally Posted by Rad View Post
Very good post,

Tired of an individual on this site screaming 20% down. I don't know on what bases is he talking that houses are to expensive in GTA? Average household income in Burlington is 110,000$. How much is a house supposed to be worth one annual salary, get real.
If you are referring to me…….I got to the 20% pullback in prices from looking at historical data (average price vs. average income, cost of rent vs. buying) I put some thought into the numbers; I didn’t just read whatever CMHC, TREB, or Remax publishes. The average household income for Burlington is $93,773 not $110,000 (see link). In a healthy market a house should be in the 2.4-2.8 range (avg income vs. avg price - I believe the 30 average is around 2.7) Last time I looked at the numbers Burlington was around 3.6x’s. One thing you can never get away from is the populations ability to pay for a home, the growth experienced in the last 7 year was fueled by debt expansion (fundamentals do not supports prices at this level) Prices are already down close to 10% in the GTA and more than that in Toronto proper. Prices have held up better in Burlington and Oakville than say Milton but if think that prices will remain stable while heading into a global recession you are mistaken. Ontario is losing quality jobs at an alarming rate and even the west is seeing a slowdown given the current price of oil. You seem to think prices coming down is a negative thing, I think the opposite (my house is a home not an investment). Higher RE prices are not good for the average home buyer…….they are for RE agents, banks, builders. All of the real estate cheer leaders are amusing .

http://cms.burlington.ca/Page500.aspx

Last edited by Nick99; 2008-11-18 at 03:07 PM.
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Old 2008-11-18, 02:05 PM
Reesa Reesa is offline
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Default more layoffs -

Countrywide let go of 2 decor ppl 2 weeks ago - <names removed> and unfortunately one of their construction site ppl <name removed>i (who was outstanding by the way.) Doesn't look good. Although I have heard that UTE is selling quite well its the other locations that are not looking too hot!

Last edited by GregS; 2008-11-18 at 06:57 PM. Reason: do NOT use names of builders staff!
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Old 2008-11-18, 11:57 PM
addtemp addtemp is offline
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Quote:
Originally Posted by Rad View Post
Why?

Because in this economical uncertainty Canadian banks don't want to lend money. It's not that they don't have money, it's they don't trust no one with it. So government has to provide some assurance for the banks.

Hi Red but most of the people here say its all speculations and we are not any were near US financial crisis situation yet Bank is not willing to do Business with you even when they have Money knowing the economic conditions better then any one else. Don't Forget these same Banks as of this writing always posted Record Profits in each quarter until now.

With the above I don't think any assurance would have been needed. Secondly Assurance to the extend of Canadian equivalent of US bailout Plan with Banks having Money doesn't make any sense at all.

Just to Play Devils Advocate though in the Long run Every Real Estate Investment pays but that doesn't justify someone coming in the Market now as compared to lets say after 6 months or an Year. I am sure that Who Invests in US Real Estate Market right now will make Triple what they can make here in Canada in the long run.

And When this assurance has been extended then What is so Fearful to the Banks that situation is not getting Better just worse. CTV just cut jobs and lot of other companies one after the other are coming out with Profit warnings and economic difficulties don't make myself any cosy with regards to Housing Market and I don't see how Housing Market wont have any effect when economy is sliding towards its worst in more then a decade.

Our Company does lot of Business with the Government and we are told that the funding is frozen because of current economic condition. Doesn't it scares you when the Government is freezing funding because fo Economic conditions ???

Last edited by addtemp; 2008-11-19 at 03:58 AM.
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Old 2008-11-19, 03:55 PM
Rad Rad is offline
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The problem with statistics is that they put everything under one umbrella. For 2.6 to 2.8 what size of a house that get you. Because I can find a home in that range right now. But it won't be a brand new 3000 sq ft energy efficient house. Did you look at historical average size of a house, nowhere near the size of today's homes. Single homes are actually to cheep in this area. Not every single family is meant to live in a single 2,000+ sq ft home. There are condos and town homes which are not as expensive and more environmentally friendly. Have you put in consideration that labourer rate for construction is anywhere from 20 to 70$ per hour plus benefits. I work for a large civil construction company and margins are very slim.I met someone that had to move from Toronto to Brantford because he couldn't afford a60,000$ home on his 10,000$ income in 1960s.
N.America is moving away from manufacturing jobs towards service industry. It will be painful but we will adjust, that's why good education is so important. CTV bought smaller networks and now they are getting rid of those employees. People lose jobs regularly whether it is bad or good economy. That's capitalism.
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Old 2008-11-19, 04:32 PM
houseowner houseowner is offline
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I would never buy a condo. Constantly increasing maintenance fees, noisy neighbours, rules. No thanks.
A family house should have land around it. We live in Canada, we have enough land.
Builders have been making insane amounts of profit. They were making profit even before when their houses were selling for hundreds of thousands dollars less.
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