4 ms·

After the crazy dire news events of the last year or two, I was quite surprised by my experience in selling + buying last summer in Toronto's market. We listed

After the crazy dire news events of the last year or two, I was quite surprised by my experience in selling + buying last summer in Toronto's market. We listed our condo early on a Friday afternoon, and were inundated with offers and interest that same day. We had a buyer over-asking within the same day, and it was all done in under 24 hours. I asked my agent about this, and she said that it was typical of the activity at that time. The market was surprisingly hot. We had no problems with the bank, in spite of reading about a widespread slowdown in lending. I'm not the only one in my social circle to have bought/sold/gotten loans last year, and I've never been sure whether this has been a product of lucky demographics (mostly technical people) or whether Toronto has largely weathered the storm. Can any other Canadian HNers throw in a data point here?

sunir 17y ago
The story of the Toronto real estate market is well described on http://guava.ca http://guava.ca. I was lucky to buy in January, 2009, when the prices had hit the bottom. They have gone up 10% since 2008 already. Non-Canadians reading those stats should note that most Canadians don't buy in the winter for two reasons: a) don't want to move in the middle of a school year b) too lazy to head out in the snow and slush
pyre 17y ago
As far as I know Toronto's real estate market hasn't taken much of a hit at all during the past couple of years. I think there is growing sentiment that this is a delayed bubble waiting to burst though. I have no data to back this up, and I'm hearing it from family/acquaintances that aren't really in real estate or economics, so take it with a grain of salt. I'm also on the other side of the continent and living in the US, so I'm a little out of touch with conditions there other than what I gather get second-hand from others. As to the article itself, it doesn't really mention that some markets (like in Alberta) suffered real estate slumps, though from the data it looks like a lot of those people did not become insolvent, even though their house value dropped. It's interesting to note how different the markets can be in Canada though. When oil prices skyrocketed, BC and Alberta were doing really well for themselves due to the oil sands. On the other hand, Ontario was slowing down because most of the economy is predicated on manufacturing (Ford, GM, and others have plants in Ontario; Oakville, Windsor, Oshawa, etc), exports to the US, and drawing in Hollywood with incentives to film in Toronto (though I think that they are province-wide, and not local incentives). This was mainly due to the rise of the USD-CAD conversion rate though that was coupled with the rise in oil speculation. It'll be interesting to see how some of these things play out in the future. From listening to CBC radio during that period, I gleaned that Canada at one point was a mostly resource-based economy, but that in more recent years (for varying definitions of 'recent'), things have changed to become more dependent on the US investing money due to the benefitial USD-CAD rates. What happens if the US hits a larger slump? How will this affect Canada? Will the aggregate affect be minimal due to the rise and fall of different sections of the country negating each other?
halostatue 17y ago
We sold our condo in March (after two months on the market) for $12k under asking and bought a house in April for $1k under asking. We're told that if we wanted to sell our house now, we'd easily make $40k on it because things have heated up again. We're not interested in selling, though.

sunir 17y ago

The story of the Toronto real estate market is well described on http://guava.ca http://guava.ca. I was lucky to buy in January, 2009, when the prices had hit the bottom. They have gone up 10% since 2008 already. Non-Canadians reading those stats should note that most Canadians don't buy in the winter for two reasons: a) don't want to move in the middle of a school year b) too lazy to head out in the snow and slush

pyre 17y ago

As far as I know Toronto's real estate market hasn't taken much of a hit at all during the past couple of years. I think there is growing sentiment that this is a delayed bubble waiting to burst though. I have no data to back this up, and I'm hearing it from family/acquaintances that aren't really in real estate or economics, so take it with a grain of salt. I'm also on the other side of the continent and living in the US, so I'm a little out of touch with conditions there other than what I gather get second-hand from others. As to the article itself, it doesn't really mention that some markets (like in Alberta) suffered real estate slumps, though from the data it looks like a lot of those people did not become insolvent, even though their house value dropped. It's interesting to note how different the markets can be in Canada though. When oil prices skyrocketed, BC and Alberta were doing really well for themselves due to the oil sands. On the other hand, Ontario was slowing down because most of the economy is predicated on manufacturing (Ford, GM, and others have plants in Ontario; Oakville, Windsor, Oshawa, etc), exports to the US, and drawing in Hollywood with incentives to film in Toronto (though I think that they are province-wide, and not local incentives). This was mainly due to the rise of the USD-CAD conversion rate though that was coupled with the rise in oil speculation. It'll be interesting to see how some of these things play out in the future. From listening to CBC radio during that period, I gleaned that Canada at one point was a mostly resource-based economy, but that in more recent years (for varying definitions of 'recent'), things have changed to become more dependent on the US investing money due to the benefitial USD-CAD rates. What happens if the US hits a larger slump? How will this affect Canada? Will the aggregate affect be minimal due to the rise and fall of different sections of the country negating each other?

halostatue 17y ago

We sold our condo in March (after two months on the market) for $12k under asking and bought a house in April for $1k under asking. We're told that if we wanted to sell our house now, we'd easily make $40k on it because things have heated up again. We're not interested in selling, though.