urbandreamer
recession proof
Anyone care to contact Martin Armstrong for a Toronto housing forecast?
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Why do you say that?Evidence that "when the tide goes out you can see who isn't wearing any pants".
I have the suspicion that most spring 2009 purchasers who put less than 25% down will flirt with being under-water during their first 5-year mortgage period.
Not personally wishful, in the sense that I don't deal directly with condos and have no interest in purchasing one in the future.
What I mean is not that I expect the average property in Toronto to devaluate by 25%, nor even the average condo. What I mean is that the average condo buyer profile, someone who puts no where near 25% down on a unit at a mediocre address, purchasing now at spring 2009 prices, may very well find themselves underwater at some point in their first 5-year term.
Put in a different way, I'm saying that I think a further drop in prices of 15% in the next year is likely on the kinds of first-time buyer units that are moving at the moment.
Gents,
Real-Estate is not only a place to live, it is a "store of value".
When global inflation looms, and you are sitting on cash, the value of your money erodes quickly. Investors must exchange their cash for other objects of value that maintain that value, such as real-estate.
Gold and stock market are other possibilities, but they don't get you rents, and they may drop in value to zero.
etc etc
- yossi
Year-Over-Year Regional Breakdown
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2009 2008
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Sales Average Price Sales Average Price
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City of Toronto ("416") 1,864 $439,459 1,734 $437,205
Rest of GTA ("905") 2,697 $372,408 2,688 $377,344
GTA 4,561 $399,811 4,422 $400,817
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Well, they're not going to fall if they stay flat...