Posts Tagged ‘Canada’
Housing Bubble In Canada
November 27th, 2009
Housing Bubble In Canada
Question: Was there a property bubble in Canada and Australia?
I have the impression, right or wrong, that there hasn't been an economic downturn in these two countries to the same extent as in the US and elsewhere. What's the real story then? Have the banks been bailed out in Canada and Australia and increases in unemployment and falls in house prices been experienced? Thanks for the info.
Answer: Our banks weren't too much affected in Australia due to strict lending regulations, and our four biggest banks are now 4 of only 11 AAA rated in the world, so we didn't get problems to the same degree as elsewhere. The government guaranteed savings to provide extra confidence. Our economy was very strong before the crisis, our budget was in surplus and interest rates had been raised very high to slow the economy down.
Once the crisis hit interest rates were dropped rapidly, so we aren't in as bad a position now as elsewhere. We also have had fiscal stimulus packages. Exports have dropped, and that is our main problem. Retirement savings have also been lost in the share market. House prices have dropped a bit in some cities, and unemployment has risen a little, but overall we are better off than elsewhere.
Barney Frank Created the Housing Bubble
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Housing Bubble In Toronto
October 9th, 2009
Housing Bubble In Toronto
Confusion is ramped in the Toronto real estate market and potential sellers are not getting all of the right information to make sound decisions. Due to the same reasons why home buyers should be buying a Toronto home right now you should be selling your home right now. It is time to expand your net worth and create some permanent wealth.
Toronto home owners are hesitant to sell because they don't think they will get all of their money out of the investment. For a lot of sellers this really shouldn't matter. Psychologically they don't want to lose money. In reality it isn't lost. It will just be transferred to a property or properties that will take advantage of the current market conditions.
Sellers can actually take advantage of the low interest rates, the buyers demand for good product, the lack of good product, and the current possibilities that exist to expand their net worth.
In a lot of cases I think a seller would be surprised at how well they can still do with selling today, even if they were taking the money and running. There has been a lot of media manipulation to have people think we in central core Toronto, are in a really bad market. It just isn't true. The average price for March transactions was $362,052 - down less than five per cent from the same month last year, as reported by TREB.
The media has been manipulating the statistics to strengthen the story that they want to tell. They are using facts from certain areas in Canada that had big housing bubbles and making them look like they represent the whole country with big bold titles. I think that the media is doing this to increase their viewership stats so that they can simply sell more advertising space.
One benefit for someone wanting to list their Toronto home right now is the ability to leverage stagnant properties that have been on the market for a long time because the sellers aren't being realistic with their prices. By pricing your property appropriately you can make you listing look like much better value.
These same unrealistic sellers existed in the busier markets but they just weren't given much attention and they never should have listed the home for the price that they did in the first place. Now the media is using them to support their stories. I could ask $11,000,000 for my personal home but it would not sell for even 10% of that asking price. This doesn't mean that the market has come down 90%, it just means that I was very unreasonable with my initial price offering. These sellers exist in all markets but in better times they don't get paid any attention.
Pricing your Toronto home is certainly the key to selling for top value in this market, there are a lot of agents who have only worked in the hyperactive real estate market that we have seen over the past 10 years. They never learned to price when you don't have 10 offers to choose from. Try to tell a realtor that has 7 or 8 years of experience that they don't know what they are doing and need to go back to the basics. Their egos just won't accept that they need to change the way they work.
These Toronto real estate agents go on with their unfounded prices until the property becomes stigmatized and the evil "Price reduction" is necessary. Price reductions are extremely damaging because you need to make reductions in 10% increments in order to make them effective. Otherwise you just waste more days on market which is the key weapon for low ball offers. If aiming high and lowering the price over time is the strategy you want to use, you will end up selling for less than if you had made the initial price offering as close to reality as possible.
Sellers can take advantage and upgrade their home by selling now and buying something that is more expensive, something that would have been out of reach before. They can also take advantage by diversifying their holdings and buying an income property. Interest rates are at their lowest in decades so now is the time to expand your personal net worth.
Sellers can also take advantage of the surge in buyers and confusion among sellers by just listing. There is a lack of quality inventory on our market. Good homes are selling well, it doesn't have to be completely updated but buyers are more likely to buy something that is mostly finished than something that needs to be leveled.
I don't have a crystal ball but this is the situation as I see it right now.
About the Author:
Evan Sage is an award winning
Toronto real estate agent
. Evan instills in his clients the confidence to make the right purchase or sale decision. He achieves this by demonstrating a superior knowledge of
Toronto real estate
and by providing a wealth of free resources on his website evansage.com to educate buyers and sellers in Toronto.
Source - You Should Sell Your Home Right Now!
Real Estate Bubble Toronto Homes
Housing Bubble Toronto
July 7th, 2009
Housing Bubble Toronto
WHAT: HDNet presents eleven concerts from various 2007 Grammy nominees all day Sunday, February 10 beginning at 11:30 a.m. ET. From Ben Harper, to Foo Fighters, from R. Kelly to Willie Nelson, HDNet will serve up concerts to suite every musical palate.
The marathon also includes concerts from Gwen Stefani, Joe Satriani, Alison Krauss and Union Station, Vince Gill, John Mellencamp and Chris Botti. The entire line up and timing is as follows:
11:30 a.m. ET Chris Botti Live with Orchestra and Guests
12:30 p.m. ET Ben Harper and The Innocent Criminals
2:00 p.m. ET John Mellencamp – Live at Walter Reed
3:30 p.m. ET Black Eyed Peas – Live from Sydney to Vegas
4:30 p.m. ET Satriani Live!
6:00 p.m. ET Alison Krauss and Union Station
8:00 p.m. ET Vince Gill – Live at the Ryman
10:00 p.m. ET Foo Fighters – Skin and Bones
12:15 a.m. ET (2/11) Gwen Stefani – Harajuku Lovers Live
1:40 a.m. ET (2/11) R. Kelly As Mr. Showbiz: The Light It Up Tour
3:35 a.m. ET (2/11) Willie Nelson: Live at Billy Bob’s
WHEN: Sunday, February 10 beginning at 11:30 a.m. ET on HDNet.
About HDNet
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About the Author:
A thoughtful & outspoken member of the new media revolution since the early nineties, he has been invited to speak at leading industry forums such as Euroforum, DDMI and CES and has had his works published in numerous trade publications.
Housing Bubble for Toronto Real Estate
Posted in Housing Bubble | 
Tags: bubble, Canada, housing, housing bubble toronto 2009, realestate, toronto | 
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