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Old 2008-02-05, 05:12 PM
itsy itsy is offline
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Question Is there going to be recession in the housing market?

What do you think? Is there going to be recession in the housing market here in Canada? Is this a good time to buy a new home from builder? or it would be better to wait?
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Old 2008-02-05, 09:04 PM
macbcomm macbcomm is offline
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Unfortunately you are asking a question that nobody has an answer to
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Old 2008-02-05, 10:53 PM
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aulikh aulikh is offline
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Quote:
Originally Posted by itsy View Post
What do you think? Is there going to be recession in the housing market here in Canada? Is this a good time to buy a new home from builder? or it would be better to wait?
Hey itsy

from ur last post i was under the impression that u have already bought a house from builder in boxgrove area as u said u r abt to finalize the deal? wht happen to it did u go through with it?
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Old 2008-02-06, 08:55 AM
itsy itsy is offline
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Default signed the deal, but waiting to firm it

My sister and I signed for 2 houses, but waiting to firm the offer.

People say if the house value goes down by 10 - 20%, then the banks will request more down payment at the time of the closing to make up for the difference in value. I guess it is a risk we have to accept before firming the offer.
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Old 2008-02-06, 03:13 PM
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aulikh aulikh is offline
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Quote:
Originally Posted by itsy View Post
My sister and I signed for 2 houses, but waiting to firm the offer.

People say if the house value goes down by 10 - 20%, then the banks will request more down payment at the time of the closing to make up for the difference in value. I guess it is a risk we have to accept before firming the offer.
?????? as far as i know it should be ok in that area...than again i say who knows one will be alive tomorrow but still we make chocies and investments by taking the risks...so my friend its all part of the game and yes ofcourse do play smart and not stupid...and again this all is matter of personal chocies and life style...one thing i know for sure real estate wun't alway s stay in recession i mean if u r buying from investment point of view to flip it than yesy its a big concern otherwise if its for ur own comfort and pleasure than it all worth it...and boxgrove is the area for comfort and pleasure...
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Old 2008-02-06, 06:24 PM
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The US is having some recession problems. Their banks stupidly financed a bunch of mortgages that made no sense and so many many many people are defaulting on those mortgages.

Here the lenders have been quite conservative compared to their US counterparts.
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Old 2008-02-07, 07:36 PM
mortgagehockeymom mortgagehockeymom is offline
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All of the economic outlooks that I am privy to being in the industry do not forecast any severity in the market over the next 2 years, let alone a recession here.

It is one of the most common questions I am asked these days, if the problems with the housing markets in the US is going to "trickle" into Canada.

Short answer is, like Greg said, we are VERY different, and the odds of this at least in the immediate-mid future are highly unlikely.

Hope this helps a bit....

Jessica
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Old 2008-02-07, 07:48 PM
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All I know is the housing prices have gone up in Ottawa for the past year or so, we bought a house last May and have closely monitored the house prices as well as mortgage interest rates before and since that period.

Our house has increased by about $30K during this 1 year period and the pricing is not showing any signs of slowing down anytime soon. People sometimes fail to remember that everyone needs a place to live and a lot of folks buy houses for their primary residences, if they could rake in some profits then that's pure gravy.
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Old 2008-02-07, 11:07 PM
Reesa Reesa is offline
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Thanks for the information Jessica - are you a mortgage broker? what is your professional background if you don't mind my asking.
I try to watch the show Hot Property on CP24 in Toronto and the real estate agents on that show seem to feel strongly that we have very regional markets. So for instance the market in BC will be much different from Southern Ontario. Personally, I think that location is very important so if you are buying in a growing area where there is demand you shouldn't have to worry about prices dropping significantly.
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Old 2008-02-08, 02:23 PM
Joseph Joseph is offline
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Quote:
Originally Posted by itsy View Post
What do you think? Is there going to be recession in the housing market here in Canada? Is this a good time to buy a new home from builder? or it would be better to wait?
Me personally, I'm not worried about the housing market crashing (here in the Ottawa area). I can see it slow down a little, but not for a while yet.

My recommendation is to buy a home well within your means. Just because the bank says you can carry a 350K mortgage, it does mean you should.

Also, how confident are you about your current employment / income? Are you in a field / domain were lots of layoffs are happening? If so, do you have the skills to find another job quickly (for about the same pay)? You can't predict the future 100%, but you can make some valid guesses.
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