GTA real estate has gone nuts...........
As people line up to save a couple of dollars on a gas fillup, others are lining up to sign for a $1,00,000 home in a few frenzied minutes anywhere even remotely close to Toronto.
People have lost all their marbles...........
A couple with a $150,000 joint pretax income (or in some cases just saying they do), and $150,000 down payment (or 0 with a cash back mortgage or a "gift" from family), and a decent credit rating, qualify for a $1,000,000, 4,000 square foot home crammed onto a 40-50 foot lot............and they are lining up all night for the right to buy them.
Our government has created a feeding frenzy, and have shown no inclination to apply the brakes. They seem content to wait until it just isn't possible for people to meet the qualifications anymore...........and that will be when it ends.
At the very pinnacle of debt burden possible.
I don't see this ending well.
Last edited by sags; 2012-04-04 at 02:26 AM.
Nope and we're right in the middle of this trying to sell and buy a place.
The market scares me and does not make sense anymore.
Lol I know someone who bought last year a $1 mil house, leases a $100k car and complains about gas prices
Did you see one of those stories with people lining up to buy homes? Some developers will pay people to stand in line to create hype. Here's one from 2007, Bazi's hiring random people for as much as $2000 per head http://www.torontolife.com/features/whole-lot-nothing/
The gas line up is definitely legitimate, but its harder to believe there is a huge line up for million dollar houses
P.S. Gas costs almost half as much here than the rest of the world, count your blessings guys!
Last edited by ddkay; 2012-04-05 at 02:45 AM.
I went to a few of those grand openings over the last year. Some people camped out in tents the night before, just to be the first one to spend half a million dollars.
I was the 30th person there at 9am. Opening was 11am.
I stood near the door with my number and spoke aloud to the crowd with concern that the prices were expensive. They were $50-100K more than local resale and did not come with appliances, furnace, etc.
Well I got no response from the crowd except for some person that said " this is Toronto and what you pay"
Inside people were called and I saw four family generations sitting at tables, each person writing cheques. The grand parents were there. The mom and dad was there. Their sister/ brother was there. Then their kids were there. They were all moving in one house..
We didn't buy, thank god. The street would be too crowded with cars when 10 people live in a 3 bedroom home.
Where my inlaws live, you can buy a 1950's bungalow for a million dollars. Infact one sold last summer for 1.2 million, ravine view. The people accross the street just bought one a few years ago and are under 30 with no kids. They have three cars, bmw X2, infinity, etc. He makes 60-80k, she works in a office (not sure salary). They both pay like $400/ month for parking.
The bought the house for 500k and spent 200K on renos.. additions and redesign.
They asked when we were going to buy, we said too much money for that area and they said to just put it on a line of credit like they did......... ahhhhhhhhhh
A guy I work with had someone on his street buy a bungalow for 400k back last fall. Scarbrough. He did absolutely nothing to it, didn't even move in. Put it back up for sale and someone bought it for 470K.
70K !! Wish I could make that in the stock market right now.
All we need is a little 30% correction and slow recovery for people to know what holding the bag feels like and never try that again. Apparently all the Canadian banks can "handle" that % decline in their mortgage portfolios. Any more than that though and it probs gets messy.
My friend sold her home for full Price about 5 weeks ago and has put offers on 4 houses in the past 3 weeks at full price or over and has lost all of them ,this is Whitby/Ajax not even Toronto!Her offers have been $390,000 -$450,000 range
A little worrisome for sure. The longer it takes to correct, the worse the correction will be. I think the banks will be OK but their growth will certainly decline. I would not be a buyer at these prices.