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- Thread starter dmose
- Start date
GraphicMatt
Looking forward to a FRESH START for Toronto
I'll get to buy a cheap one, I hope.
dmose
New Member
AKS
Senior Member
If you can snag new units under $400 psf it would be considered cheap or take on original purchase prices of assignments which people bought back in 2004-2006.
dpylyp
Active Member
Where are the condos
Two clients called today, want to list 3 assignments, they don't want to wait for 2011 to close.
Another client on a multiple offer was bidding almost 300's on 650 square feet, 10 offers on the same unit.
My personal concern is how does CMHC view the bidding wars and pricing in these multiple offers?
And yes I very much want some stability and logic
Two clients called today, want to list 3 assignments, they don't want to wait for 2011 to close.
Another client on a multiple offer was bidding almost 300's on 650 square feet, 10 offers on the same unit.
My personal concern is how does CMHC view the bidding wars and pricing in these multiple offers?
And yes I very much want some stability and logic
AKS
Senior Member
There is no logic. If people want to buy or need a place to live, they will purchase and if several people want the same unit, there will bound to be bidding wars. There are some who are afraid interest rates will go up so they want to purchase and lock it in. Some who may be afraid of prices going up more. It's based on various factors. No one can really be 100% sure when market goes up and down. It is driven by buyers and sellers.
lordmandeep
Banned
does this mean there are very few units on the market to be sold...
Yossi Kaplan MBA
Realtor
inventory / downtown condos
There are less units to sell right now then in the last 3-4 years, builders are not releasing anything new, the drip-drop that we see is a drip in the ocean.
In the meantime, builders are selling the remaining inventory to make sure prices are stable (supply vs. demand equilibrium), and by the speed of sales I see on MLS, new sales and assignments it's a healthy market with end-users and investors snapping what they can to add to their portfolios before price increase and/or inflation hits.
Also, it doesn't really matter if prices are 400 or 450 or 500 per foot, as long as investors see long-term value in the purchases they are making now.
My investors tell me they are buying for 10-20 years in the future, they want me to find them good and reasonable value to "park" their cash in.
What I am learning from this is:
1 - there are people out there with healthy amounts of cash and they prefer real estate to the stock market
2 - investors believe prices are going up
3 - they are older, richer, more experienced and smarter then me, so I'm listening to them carefully, these guys are no gamblers but calculated money managers.
4 - do not buy to flip. not now, not later. that's not investing, that's gambling.
5 - know who to deal with and who to work with. find the right people who will get you the better properties at better prices and better terms.
etc etc.
ps. Guava has nice charts but I am not sure where they are getting the info from, so I can't take it seriously until they tell me what is their source.
thx.
There are less units to sell right now then in the last 3-4 years, builders are not releasing anything new, the drip-drop that we see is a drip in the ocean.
In the meantime, builders are selling the remaining inventory to make sure prices are stable (supply vs. demand equilibrium), and by the speed of sales I see on MLS, new sales and assignments it's a healthy market with end-users and investors snapping what they can to add to their portfolios before price increase and/or inflation hits.
Also, it doesn't really matter if prices are 400 or 450 or 500 per foot, as long as investors see long-term value in the purchases they are making now.
My investors tell me they are buying for 10-20 years in the future, they want me to find them good and reasonable value to "park" their cash in.
What I am learning from this is:
1 - there are people out there with healthy amounts of cash and they prefer real estate to the stock market
2 - investors believe prices are going up
3 - they are older, richer, more experienced and smarter then me, so I'm listening to them carefully, these guys are no gamblers but calculated money managers.
4 - do not buy to flip. not now, not later. that's not investing, that's gambling.
5 - know who to deal with and who to work with. find the right people who will get you the better properties at better prices and better terms.
etc etc.
ps. Guava has nice charts but I am not sure where they are getting the info from, so I can't take it seriously until they tell me what is their source.
thx.
Last edited:
Inigo Montoya
New Member
The guava graphs are just visual representations of the TREB monthly "Market Watch" data. They did once point that out (and it's easy to see that the data matches).
iSlutsky
Chit-Chatter
That is interesting. I would be hesitant in viewing a condominium as a 20-year investment. There are so many variables that can not be accounted for, such as:
a) How will the building be run over the next 20 years; and,
b) What will the costs be in twenty years for maintaining the building.
I see investing in a condo for 20 years to be much different than a house / land. Good house / land investments have infinite potentials in the long run, whereas a condo only has three: 1. Live there; 2. Sell it; and 3. Rent it as live or live/work.
Then again, you can always listen to Brad Lamb who says to buy a condo and you will IMMEDIATELY make $40,000 PROFIT (read his article here, and my blog response here).
cdr108
Senior Member
BJL is the worst (or best, depending on how you see it) self-promoting shill there ever was.
In fact, he's now selling tickets for a lecture scene ... lol ... Canada's version of Tom Wu ...
Pretzel
Not New to UT
I've got two words for Brad Lamb, DUMB-ASS!
daveto
Active Member
30% of mortgages are variable. And prior to last Sept, these were frequenty prime minus .5-.9. So that means that 30% of homeowners with a mortgage are presently paying 1.35-1.75%.
Seems to me that must be a pretty big disincentive to sell (and therefore lose that great mortgage rate). And that would undermine a big portion of the overall marketplace from selling. It seems reasonable to me that this could add up to a 15-20% decrease in units listed for sale.
Just a theory, but one that could probably be confirmed or disproved by those with first hand knowledge (listing agents, brokers?)
Seems to me that must be a pretty big disincentive to sell (and therefore lose that great mortgage rate). And that would undermine a big portion of the overall marketplace from selling. It seems reasonable to me that this could add up to a 15-20% decrease in units listed for sale.
Just a theory, but one that could probably be confirmed or disproved by those with first hand knowledge (listing agents, brokers?)