Housing market fluctuations causing chaos

Housing market fluctuations causing chaos



whether in the market for a condo or for a house last month the real estate market in the GTA has been pretty crazy just yesterday on City News I was telling you how the price for homes average homes across the GTA was down about 6% and some are now getting caught in the market slow down I spoke with one man today who like many purchased a home in March which was pretty much the hottest month on record though his old home had sold yet and like many that house still sits on the market this hour we're out hundreds of thousands of dollars caught in the housing hoopla Bruce who lastly only used his first name bought a downtown home in March little did anyone know that was right when the market was hitting its most recent boiling point did you feel compelled you had to jump on something then when when the property came up definitely that was the advice we were getting a couple weeks later around mid-april Bruce and his wife listed their home in New York region the activity was good for about two days and it just died there puzzling predicament just happened to coincide with the provincial governments housing measures announced on April 20th we didn't think the government would step in as quickly and as dramatically as they did and even if they did who really thought it would have such an impact as we first told you recently on City News the number of real estate sales is down in nearly every corner of the region Bruce says he's fortunate he was able to approve the bridge financing from the bank though the costly short-term loan which helps purchasers bridge the gap between old and new mortgages is far from ideal the funding finally came through but we're paying huge fees huge interest rates they are probably the two most stressful days of my life and he's not alone City News has spoke to multiple people in the exact same stomach-turning situation with one mortgage broker reporting multiple calls from clients every day inquiring about bridge financing in recent weeks we're probably seeing like a tenfold increase in the number of consumers that not necessarily are taking bridge financing but at least are entertaining the idea and other issue real estate agents we have spoken with admit to advising clients to purchase before selling is that maybe one of the reasons some people caught up and then this a little bit cuz the markets been a little different over the last month absolutely I feel for those people that bought in March and are trying to sell their property now to move in it's important to exercise more prudence Canadian homebuyers don't have you know hundreds of thousands of dollars in you know in spare capital to manage a cash flow of an extra property how stressful has this been for you both emotionally financially this has definitely been the most stressful time for my wife and I in our whole lives financially emotionally spiritually but we're we're trusting God's going to get us through that through this whole thing and so far he has some economists are pointing the finger right at the province saying when they announce these measures they should have given consumers a month or two heads up before they came into effect exciting they could have saved people thousands and thousands of dollars now we reached out to the Housing Minister Chris Fowler today his office got back to us just before airtime sending us a statement which in part reads for a number of months prior to announcing our fair housing plan on April 20th 2017 our government clearly stated on many occasions that we were looking at developing a comprehensive set of plans to stabilize the housing market we urge all prospective homebuyers and sellers to speak with experts to ensure they are informed of all market factors before making real estate decisions

Comments

  1. I H

    As the old saying goes, "the market moves in ways to hurt the greatest number of people". If it moves up, it doesn't affect the few millennials who haven't purchased (they were priced out 3-5 years ago). If the market moves down, it will hurt everybody. That's why the market will move down.

  2. April Elliott

    Yea we have morons in charge of our government in action if seen in cabinet ,their like a mass of monkeys at the Zoo.There's far to many of these dead weights collecting fat cheques and pentions for nothing.

  3. Alla Bershadska

    To make money you need to produce something…smart ass:))) bought house in March and wants to sell in June

  4. IdoCareForPeople

    House is not an asset, its a liability…..!
    If you borrow money to buy it, you are just renting it from the bank… until you make the last payment…
    The interest you pay is the rent…

    Sadly most people don't seem to understand this… BTW this will get a lot lot worse…

  5. NicosMind

    Idiots and simpletons. My god look at all the housing bubbles
    And get a fucking clue. They burst. People cant afford the mortgages and wages arent rising so Canada isnt special. Mortgages and wages need to rise at the same rate. This is all the fault of low interest rates lower than market levels!!!

  6. Shalom Dunn

    The government has a duty to protect the people from foreign and domestic investors. Homes are not a financial instrument to be sold on the stock exchanges, nor should local people be competing with investors to achieve their dream of home ownership. The government needs to set a limit on home ownership to 3 homes and they would only be allowed to purchase if they are local to the area. That way they face the same risk as the residents do when they pump and dump.

  7. alvin chipmunk

    The very powerful Real Estate ASSociation is at fault here for the most part.
    The value of all 'fixed real estate' was NEVER anywhere near stupid, super ( FALSLY ) inflated level's that they were and still are.
    Forever trying to play in with the FALSLY applied 'market value' and 'location, location, location' LIE's.
    The most resilient area to the nation's failing economy the U.S. Capitol region, is even, FINALLY – starting to get 'hit' by it all.
    And it IS primarily the Real Estate ASS' fault.
    Property owner's and developer's are, simply, refusing to accept the fact that the region's economy is slowly but surely, declining.
    Like a screaming banshee, they keep screaming 'market value! Merket Value!' & 'location, location, location' –
    That, simply is not there any more at the greedy level's that they are fantsizing about to make all that easy, sleazy money any more.

  8. Pablo

    sure… blame the government… real estate agents were only trying to help their clients not their pockets… right?

  9. marco mac

    If you take financial advice from your banker or you truth your real state broker you
    are crazy, educate yourself about the economy don't blame other for your mistakes
    or you will never learn

  10. Neal Busby - Rock Drummer

    Ha ha. Two people to never believe what they say, politicians and real estate agents.

  11. ThingsToDo

    Just admit these people are about to get fucked. The market is going to drop out and people will be underwater. Why would you trust your real estate agent? Their job is to sell you a home at the highest price so that their commission will be equivalently large. Buyer beware, no tears shed.

  12. ChaoticCreations

    So am I supposed to feel bad that people that can't sell their overpriced homes for the amount they expected?

  13. Sheila Feng

    2013 to 2016 was the best time for a lot of chinese millionaire i know to purchase properties in toronto and flip them for nice profits. but most these people sold in 2016 and are gone back to china with the money. thank buddah they sold early. it was a very easy loopholes to avoid paying capital gains apparently

  14. Linda Fukuyu

    The rule of thumb is .. before you purchase the property .. look around you .. unemployment?  good jobs with good pay? and the skyrocketing overprice property .. those are the factors you might wanna postpone for this moment.

  15. Tudval Stone

    The government is desperate to buy the election, but it won't work.. when they say they announced in advance they are working on a plan… bla, bla bla… that doesn't mean people expected BLATANT market interference. They could have announced new measures to build affordable housing, to help first time buyers – any number of things that would still RESPECT property rights.

  16. Base Line

    there won't be a crash in Toronto.
    Ppl selling now have to, those who bought already having to sell their own. those who flipped homes are cashing in. and those who should not of owned in the first place are doing so as well.

    once new listings stop you will see a gradual increase in prices back to Jan-Mar pricing.

    Vancouver is up again and we are 6 months about behind them.

  17. Linda Anna

    We have 2 young kids, I want them to be able to have the same luxury as us to afford a house when they finish their school and get a job. The house should NOT be an investment for people to make business of it. It should be a place where you can rise your family and an asset that grows with inflation, that you could have comfortable life when you retire if you decide to sell and not be force to sell because the property taxes are so high that you are forced to move. Im not feeling bad for the investors at all, they are the ones that are stealing my kids dream of owning a house one day.

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