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Sellers Market - Homes


Stoney

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23 minutes ago, Taillight said:

I don't think interest rates will rise because they want to slow the economy down, more of a raise the dollar type of scenario. maybe an external event. wheres RR when we need an explanation

 

Interest rates won't rise for some time.  The cad has more to do with oil and what the us is doing with interest rates.  I think it will trade sideways with down pressure, but nobody really knows.

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5 hours ago, Taillight said:

sorry guys, I cant wait for this market to crash

Crash, I do not think so either....but it definitely needs a correction/reality check though.

 

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33 minutes ago, Puzzleboy said:

Why does it need that?  It's a free market.....

Prices are out to lunch, that is why.

I know I am likely the minority when I say this, but I could not sleep at night if I had to get the sort of mortgages younger people, or some older people for that matter, need to get to buy a home now a days.

Yes, there are choices, but at what cost...how many hours in a day to do you want to spend commuting or where you can get work to support a family, etc.... Not everyone has a money tree, or a family that might have one. Largest expense for most is a home.

Edited by Stoney
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Prices are not out to lunch; they're what the market will bear.  And here in the city, we're still cheap compared to say, Vancouver or NYC.  It's simple demand, and good for all. I renovated and flipped 2 houses, and am comfortable today.  It was a lot of work, and hours.  That can still be done, but successive generations have a sense of entitlement, and are getting lazier.  So nice, turn-key housing is spendy in the city, and rightly so.  I'm more shocked at the prices an hour away. 

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4 hours ago, Puzzleboy said:

Prices are not out to lunch; they're what the market will bear.  And here in the city, we're still cheap compared to say, Vancouver or NYC.  It's simple demand, and good for all. I renovated and flipped 2 houses, and am comfortable today.  It was a lot of work, and hours.  That can still be done, but successive generations have a sense of entitlement, and are getting lazier.  So nice, turn-key housing is spendy in the city, and rightly so.  I'm more shocked at the prices an hour away. 

 

 

Homes are priced at what the market is willing to pay given the current conditions, that is an unarguable fact.  Market conditions, interest rates, confidence can change.  People obviously do not mind taking on huge mortgages believing their home will continue to rise.  We have gotten way beyond the historical average, the last correction (crash) saw prices decline for more than a decade.  I hope it keeps going up or at least holds current valuations.

 

http://www.bnn.ca/News/2016/5/31/Bank-of-Nova-Scotias-CEO-calls-on-Ottawa-to-raise-down-payment-rules-again.aspx

Edited by ArcticCrusher
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4 hours ago, Puzzleboy said:

Prices are not out to lunch; they're what the market will bear.  And here in the city, we're still cheap compared to say, Vancouver or NYC.  It's simple demand, and good for all. I renovated and flipped 2 houses, and am comfortable today.  It was a lot of work, and hours.  That can still be done, but successive generations have a sense of entitlement, and are getting lazier.  So nice, turn-key housing is spendy in the city, and rightly so.  I'm more shocked at the prices an hour away. 

I think you are in the city, so I am about an hour away....where you are more shocked about the prices, but that is also where the urban sprawl is, so price points are reflective of that. 

Agreed people of today want the move in ready, everything now attitude, forget about waiting or working towards it.....that you will pay dearly for, because the builder can charge that and as they say, if you build it, they will come......

The other factor that I see not helping the prices, in this area at least, is the amount of dirt that must be moved before a foundation can be laid, which adds to the costs, as well the infrastructure upgrades to accommodate the sprawl.....these are the things that take the most time, houses go up in a blink of an eye.

I am comfortable too with a home, it is first time buyers that makes me shake my head at the prices, that to me are unrealistic, thankfully money is cheap now a days.....but these factors could land a lot of people in a lot of trouble when and if things start to shift the other way, that will have a ripple effect. 

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50 minutes ago, ArcticCrusher said:

 

 

Homes are priced at what the market is willing to pay given the current conditions, that is an unarguable fact.  Market conditions, interest rates, confidence can change.  People obviously do not mind taking on huge mortgages believing their home will continue to rise.  We have gotten way beyond the historical average, the last correction (crash) saw prices decline for more than a decade.  I hope it keeps going up or at least holds current valuations.

A co-worker bought a soon to be built home on Sharon....shopped for months and said he would never pay that kind of money, visited all the sales office looking for deals, but of course there were none, houses were selling as fast as what was allowed to be released, so why offer deals.

In the end he bought a home where he said he would not....7 or 800 hundred thousand later on a non premium postage stamp lot.

Saving grace for him is, the current semi house he is in has increased significantly, so the burden he thought he was going to have, will not be.....so good for him not being a first time home buyer.

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38 minutes ago, Stoney said:

A co-worker bought a soon to be built home on Sharon....shopped for months and said he would never pay that kind of money, visited all the sales office looking for deals, but of course there were none, houses were selling as fast as what was allowed to be released, so why offer deals.

In the end he bought a home where he said he would not....7 or 800 hundred thousand later on a non premium postage stamp lot.

Saving grace for him is, the current semi house he is in has increased significantly, so the burden he thought he was going to have, will not be.....so good for him not being a first time home buyer.

 

Its the first time buyers without any help who are SOL.  The stats still show strong sales, until that trend reverses I don't see any price retractions.   I hope it at least cools down somewhat.

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1 minute ago, ArcticCrusher said:

 

Its the first time buyers without any help who are SOL.  The stats still show strong sales, until that trend reverses I don't see any price retractions.   I hope it at least cools down somewhat.

Or still have affordable pockets first timers can buy at, that are not in the sticks....these are getting very sparse!

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54 minutes ago, Stoney said:

I think you are in the city, so I am about an hour away....where you are more shocked about the prices, but that is also where the urban sprawl is, so price points are reflective of that. 

Agreed people of today want the move in ready, everything now attitude, forget about waiting or working towards it.....that you will pay dearly for, because the builder can charge that and as they say, if you build it, they will come......

The other factor that I see not helping the prices, in this area at least, is the amount of dirt that must be moved before a foundation can be laid, which adds to the costs, as well the infrastructure upgrades to accommodate the sprawl.....these are the things that take the most time, houses go up in a blink of an eye.

I am comfortable too with a home, it is first time buyers that makes me shake my head at the prices, that to me are unrealistic, thankfully money is cheap now a days.....but these factors could land a lot of people in a lot of trouble when and if things start to shift the other way, that will have a ripple effect. 

Anything is only worth what someone is willing to pay and if they aren't the price will drop. We haven't had a mortgage in almost 30 years. The amount of debt I see some of the younger people that I worked with would have scared the heck out of me. But then it seems an awful lot of these "first time" home buyers want what it took their parents a lifetime to get and they want it now. These first time buyers homes are 2100+ sq. ft. five appliances, 2+ bathrooms, granite counter tops, finished basements, 2 car garages and landscaped yards. I know I'm getting old but in my day that was not what was considered a starter home.

Going back to when my parents bought their house the typical new house, a garage was optional, the driveway was gravel, the yard was dirt. You broke up the dirt and spread grass seed. Much like just about everyone on the street in the new sub-division they hung bed sheets in the windows while they saved to buy draperies etc. Many years later they had what their kids want now.

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1 hour ago, 02sled said:

Anything is only worth what someone is willing to pay and if they aren't the price will drop. We haven't had a mortgage in almost 30 years. The amount of debt I see some of the younger people that I worked with would have scared the heck out of me. But then it seems an awful lot of these "first time" home buyers want what it took their parents a lifetime to get and they want it now. These first time buyers homes are 2100+ sq. ft. five appliances, 2+ bathrooms, granite counter tops, finished basements, 2 car garages and landscaped yards. I know I'm getting old but in my day that was not what was considered a starter home.

Going back to when my parents bought their house the typical new house, a garage was optional, the driveway was gravel, the yard was dirt. You broke up the dirt and spread grass seed. Much like just about everyone on the street in the new sub-division they hung bed sheets in the windows while they saved to buy draperies etc. Many years later they had what their kids want now.

Sure but those type of homes are not being built today, you will still find some in the city without garages or even driveways for the true diehards.  

 

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Exactly..... the sense of entitlement.  And nobody seems to build "starter" homes any more, at least not in the city.

My immediate neighbour was a bungalow for many years.  New buyer bought it for 600k, tore it down, and now there's a 3600 sq ft house there.  Probably spent another 600k building it.

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13 minutes ago, Puzzleboy said:

Exactly..... the sense of entitlement.  And nobody seems to build "starter" homes any more, at least not in the city.

My immediate neighbour was a bungalow for many years.  New buyer bought it for 600k, tore it down, and now there's a 3600 sq ft house there.  Probably spent another 600k building it.

 

I would not build a starter home on a tear down I just paid $600K for.  

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20 minutes ago, ArcticCrusher said:

 

I would not build a starter home on a tear down I just paid $600K for.  

No, but a 600K bungalow in the city would likely be in the range of a first time buyer.....if they were willing to live in "that sort of a house" as there first one. 

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20 minutes ago, Stoney said:

No, but a 600K bungalow in the city would likely be in the range of a first time buyer.....if they were willing to live in "that sort of a house" as there first one. 

Agree, it could be quite painful to live in that.

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The biggest problem with the boom market....MPAC will assess your property value.  They just did mine again.  My taxes have more than doubled in 10 years thanks to this lovely booming market.  

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For sure they will, just your home is another tax grab.   When is enough enough....between Wynbag and Justine we, especially Ontario, is fucked......but on a positive note Justine is flying the gay colours on parlament hill......what an insult

Edited by Poncho
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2 hours ago, Poncho said:

For sure they will, just your home is another tax grab.   When is enough enough....between Wynbag and Justine we, especially Ontario, is fucked......but on a positive note Justine is flying the gay colours on parlament hill......what an insult

 

I would not be surprised at all if Trutard used the gender ID flag and proclaimed himself to be the first female PM in Canada's history.  Oh wait, there was one already. 

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All these new homes and infrastructure to support them is an easy target and excuse to increase taxation.

Why more of the infrastructure costs are not passed onto the builders, boggles my mind.

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