Canadian Press headline: Cooling home sales push some owners to list their units in hot rental markets
By Tara Deschamps The Canadian Press
Posted August 2, 2022 12:11 pm
https://globalnews.ca/news/9030997/condos-rental-market-hous…
When Shannon Tebb listed her downtown Toronto loft for sale in mid-June, she did everything to make the property attractive for buyers. She hired stagers, painted walls, washed the windows, listed the place below market value and advertised all over social media.
But by July, she was pulling the property off the market — and not because she’d found a seller.
Tebb terminated the listing because the market shifted so significantly that the bidding wars and frenzied pace of sales seen earlier this year had dissipated.
Well, there’s indeed most serious bleeding going on in Toronto, Ontario. The latest statistics: average properties are devaluing by about C$2,200 per day. Yes, … per day! Since the February ‘22 peak, real estate of all kinds has declined an average of C$260,000. This is almost exactly 20%.
More specifically, the price of a detached house (on average) in and around Toronto is currently standing at C$1.36 million, … bit lower than about a year ago. But in February ‘22, the average was fetching C$2,073,989. Last month - July ‘22 - that became C$1,515,763. The difference of C$558,226 is C$111,645 per month, … and this is not a bottom yet!
… fwiw,
C.
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in February ‘22, the average was fetching C$2,073,989. Last month - July ‘22 - that became C$1,515,763.
Didn’t Canada Ban Foreign Home Buyers For Two Years?
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Didn’t Canada Ban Foreign Home Buyers For Two Years?
Yes. Last April. Mind you, that never was an issue that, presumably, kept driving prices going up. Sure in a $12-million plus shacks range, … maybe? But those were trades from a foreigner-to-foreigner mostly - think Roman Abramovich types.
In a “normal” range of residential housing, foreign buyers represent probably just a 1 percent or less of all buyers. In some cities like Vancouver, maybe close to 2% ( large Chinese population there).
Anyway, … pricing was driven primarily by RE cartel machinations, … with the most generous help from extremely low mortgage rates - you know, selling on maximum affordability of low monthly payment, … and and don’t fret about the actual price ( … RE prices only go up btw, amirite?) All kinds of other unethical tactics, besides, were used to create FOMO effect: … collection of “blind” bids on a certain date ( … or you forfeit the opportunity to buy this pile of 2x4s!) List of tricks goes on, …
It all worked splendidly, … until rates went up from ~2% now to ~6% on a 5 year fixed rate and 25 year amortization.
And so now, wheels are falling off, …
C.
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