Question Real estate question

[buzzg]

Off topic but wanted to get some thoughts from fellow members on this forum.

Do you think it is a good time to buy the house? September month is slower as compared to July and August. Home prices are in a downward trend. A couple of factors:
- COVID second wave expected
- Winter season is starting soon
- School started
- Banks stopped mortgage deferrals
- Economy recovering at slower pace

Every year during this time real estate activities definitely get slowdown but this year is quite unexpected. Anybody foresee a big housing market drop in a couple of months or next year?

 

[snoopdoggie]

Off topic but wanted to get some thoughts from fellow members on this forum.

Do you think it is a good time to buy the house? September month is slower as compared to July and August. Home prices are in a downward trend. A couple of factors:
- COVID second wave expected
- Winter season is starting soon
- School started
- Banks stopped mortgage deferrals
- Economy recovering at slower pace

Every year during this time real estate activities definitely get slowdown but this year is quite unexpected. Anybody foresee a big housing market drop in a couple of months or next year?

If you want to buy now, you should. Now is as good a time as any. Interest rates have hit rock bottom and prices seem as if they'll never come down.

 

[buzzg]

Agree, mortgage rates are at historically low levels but I think there will be significant drop in house prices as they are over inflated and overall economy is struggling.

 

[ralphie]

wait... House prices will fall even if worst-case scenario averted: CMHC - BNN Bloomberg

 

[cupcrazy]

if you live in Alberta, sure. In Ontario not so much at the moment.

 

[buzzg]

I am Ontario bro and I already started seeing drop in prices in peel area.

 

[Runningwithknives]

I am Ontario bro and I already started seeing drop in prices in peel area.

I'm in Peel. No such thing.
Inventory is low. People are just not selling.....waiting it out, i guess.
We are a city of immigrants. Immigrants BUY homes.
Wait till the vaccine is out, by this time next year....prices would have skyrocketed again!

 

[Justine2016]

Off topic but wanted to get some thoughts from fellow members on this forum.

Do you think it is a good time to buy the house? September month is slower as compared to July and August. Home prices are in a downward trend. A couple of factors:
- COVID second wave expected
- Winter season is starting soon
- School started
- Banks stopped mortgage deferrals
- Economy recovering at slower pace

Every year during this time real estate activities definitely get slowdown but this year is quite unexpected. Anybody foresee a big housing market drop in a couple of months or next year?

A housing drop all depends on the labour market, if we have unemployment staying above 10% next year then house prices will come down. Alberta is a good example of this (house prices came down 10%). If unemployment starts going going down toward the norm of 5% then combined with the low interest rates presently 5 year fixed is less then 2% then you will see a lot of bidding wars and increases in home prices. CMHC is forecasting a drop of 10% as they see chronically high unemployment next year but so far the labour market has been resilient and you have seen a bounce back in this third quarter, will it last I am not sure.

 

[buzzg]

I'm in Peel. No such thing.
Inventory is low. People are just not selling.....waiting it out, i guess.
We are a city of immigrants. Immigrants BUY homes.
Wait till the vaccine is out, by this time next year....prices would have skyrocketed again!

I am in the market for past 2 months. I am seeing houses selling at asking prices or less from September onwards.so that is clear indication of housing market taking a breather.

I agree there will be always a demand for housing because of immigrants moving to Canada and in long terms house prices continue to skyrocket. I/we are trying to assess the short term impact which might help to save 50K to 80k.

Thank for your inputs though. Cheers

 

[buzzg]

A housing drop all depends on the labour market, if we have unemployment staying above 10% next year then house prices will come down. Alberta is a good example of this (house prices came down 10%). If unemployment starts going going down toward the norm of 5% then combined with the low interest rates presently 5 year fixed is less then 2% then you will see a lot of bidding wars and increases in home prices. CMHC is forecasting a drop of 10% as they see chronically high unemployment next year but so far the labour market has been resilient and you have seen a bounce back in this third quarter, will it last I am not sure.

Valid point. Fall season brings a lot of jobs in the market but this year there will be less spending because of obvious reason. Again everything is temporary. Interesting to see how much spending people do during Halloween, Xmas & new year. A good indicator of economy stand point.

 

[WachuGonnaDo]

More new homes sold in Toronto last month than in any August in 20 years

Experts had pretty conflicting forecasts about how the pandemic would impact the housing market in Toronto and Canada at large, but unfortunately for…

www.blogto.com

 

[snoopdoggie]

I don't know everything about what is going on within the city of Toronto, but if you look at Ontario as a whole, the houses are still selling like hotcakes, and I don't understand why. Sure, the low interest rates have a lot to do with it, but still.

 

[goodtogo1962]

I don't know everything about what is going on within the city of Toronto, but if you look at Ontario as a whole, the houses are still selling like hotcakes, and I don't understand why. Sure, the low interest rates have a lot to do with it, but still.

With pandemic no one wants to ride elevators. Condo's are for fools.

 

[snoopdoggie]

With pandemic no one wants to ride elevators. Condo's are for fools.

True, I never thought of that.

 

[JakeOwen]

Prices down? LOL which rock are you living under??

Bidding wars for single family homes are alive and well!
With people being quarantined/working from their homes - Tiny city dwellings don't cut it anymore. People are looking for larger accommodations in the burbs (including Peel/halton ). The homes with good looking basements and backyards for entertainment are getting snapped up within the day.

 

[EightSecondRide69]

With pandemic no one wants to ride elevators.

But massage sessions should be fine, right?

 

[sy barite]

But massage sessions should be fine, right?

That would depend on your chances of getting a hj in the elevator.

 

[GordianKnot]

That would depend on your chances of getting a hj in the elevator.

Could happen, if you press the right buttons!

 

[snoopdoggie]

Prices down? LOL which rock are you living under??

Bidding wars for single family homes are alive and well!
With people being quarantined/working from their homes - Tiny city dwellings don't cut it anymore. People are looking for larger accommodations in the burbs (including Peel/halton ). The homes with good looking basements and backyards for entertainment are getting snapped up within the day.

Yes houses are being sold for above asking price. It's crazy.

 

[buzzg]

BNN Bloomberg – Canada Business News, TSX Today & Interest Rates

Get the latest Canadian business news, TSX updates, interest rates and Bank of Canada coverage. Explore stock market investing and get expert financial insights on investment portfolio strategies.

www.bnnbloomberg.ca

According to Bloomberg article 18 pc drop expected in worst case