Toronto Home Buyers Disappear as Interest Rate Cuts Continue to Stall
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- เผยแพร่เมื่อ 22 พ.ค. 2024
- Toronto Home Buyers Disappear as Interest Rate Cuts Continue to Stall
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►► The Toronto Real Estate Market has stalled. It's been crickets out there, as far as home showings go. Toronto Home Buyers have slowly disappeared, one by one. As a result of this, I suspect that we'll be at another decade low month in terms of real estate home sales. So what's driving all of this? This all sums up to one thing, and that's expectation.
Home buyers have their biased expectations, while home sellers have their own biased expectations as well. The two sides are really far apart right now, which is why the Toronto Real Estate Market has come to a stalemate when both sides aren't meeting (hence, no showings). The expectations on both sides are based on interest rates and where the market will ultimately go.
In this episode of Prime Properties TV, I'll be breaking down these expectations and showing you just how poor showing results have been as of late so make sure you tune in for more details!
#TorontoRealEstate #TorontoCondoMarket #TorontoRealEstateMarket
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Interest rates are normal, the prices are the problem.
Or low rates cause high prices?
Buyer for a detached this year. I was doing viewings and made 2 offers from late January to the start of March. I hit the first bidding war in early March and decided to take a break for the spring. I have no interest in bidding wars or offer nights trying to trigger bidding wars. Spring is always busy and I get that so I decided I'll resume searching in June or July when the FOMO folks are finished. I actually think the offer night tactic has turned a lot of spring buyers off.
The rate cuts are actually irrelevant for me right now. The market will balance for them either way and you are correct a quarter point or two makes zero difference to what I can or can not afford.
Make a bully offer before the offer night. That’s what I did and got our home In March and we didn’t really pay a lot more
Comes down to where you're looking and inventory level. Hard to paint a broad brush on all detacheds. Ie Riverdale detachs move differently than Scarborough detachs
When u do bidding wars out of greed, you will pay and loose ur life. Seen ppl attempt to commit suicide, from getting in bidding wars and over paying and when market softens their entire life investment has turned into zero and they have zero equity. This country is disgusting and real estate is alll that is has. Worse place on earth currently easily worse than most third world countries to live in at 10000 times the cost.
Current GTA Real Estate valuations are still highly suspect, given, far too numerous and ever worsening metrics unsupportive of even current price discovery levels.
Simple put....
the greater fool is indeed catching a falling knife at this juncture.... and consumer sentiments are rapidly becoming well aware.
Many sellers are living in an "alternative universe" and have no idea that the "era of arrogance" is not coming back.
Hence praying for rate cuts. It really depends on your asset too.
But the real people don’t have to sell
@TheJlee28 if interest doesn't come down alot of them can't afford a 6% interest on their million dollar mortgage. As boomers begin to sell off or pass on their homes to the lower populated generations the market will have more supply and the prices will drop meaning they will be taking a massive financial hit on homes.
@@TheJlee28until they do
@@rally_chronicles keep on dreaming
I think it's been laughable that people thought int rates were going to drop so quickly. Treasuries are still inverted. Inflation is still high. The 2 year US treasury has been pushing 5% for a month. The BOC is stuck with 2 economies. The real estate industry which has been seeing wild inflation for 20 years and the rest of the economy which has lagged massively. Wages have been left in the dust by home prices and in a normal world home prices would have to correct 25-30% at this stage.
Look back to the 90s. When rates started to drop, it was because the BOC was forced into pushing the economy into a recession because of real estate prices. And while rates dropped so did home prices.
Sold my property in two weeks! And avoided the new increase in capital gains tax! 😄
Congratulations 🎉
The problem is listing agents promising the wrong price to get the listing. After they get listing, they tell seller to sell for 300K less and the seller is not interested to sell at those prices. No house lists before listing agents and seller discuss MLS price.
The unfortunate saying in our industry is "You cant get a price reduction if you dont have a listing". Don't agree with it, but its common.
@@PrimePropertiesTO Happened to me twice with listing my properties in GTA. They promise top price prior to signing listing agreement. After the listing is active and sitting for weeks, they push for aggressive price reduction (pointing out all issues with my properties, make false feedback from showings, scare me that my property will sit for 3 more months, send me lowest comparables on the market that is already sold and no longer active, show me offers that are low, tell me there's one bad offer but the buyers is not motivated and push me to sign back).
My Detached home just sold. Over 51 viewings … 8 offers. Sold $130k over asking.
Where is the shortage of buyers exactly?
I refuse to make any major purchases until the interest rates drop significantly.
More likely the house prices drop first which is better anyways.
Thanks for being SUPER TRUTHFUL & REALISTIC about the current market, and not like other Realtors who LIES for own personal gain!!
I appreciate that!
With the tumbling Canadian dollar as soon as they cut rates, the Canadian dollar will tank, and prices of Canadian houses will also tank when priced in US dollars.
Nice call Zhen! Glad I sold!
Good stuff!
realtors greed started it all
It's electorate greed. That should have stopped immigration and abolished all housing speculation.
and home owners and investors. All got rich doing the least amount of work humanly possible, real estate has 100 percent been easy money and nothing has come even close, not even dealing drugs, but u have zero consequences and it is legal.
Hey zhen! Love the content.
I personally don’t think there will be any rate cuts. Boc is doing head fakes
Inflation is still strong in the US, if the BoC cuts rates now, they’ll trigger import inflation because our dollar will be devalued compared to the USD.
In the meantime, a good house listed for a good price will sell. If it’s not right, buyers won’t buy until the prices come down to what they can afford factoring in comprises/reno’s.
Hey Tom. The Larry Summers camp. Def a non zero probability of that.
But there is history of the BOC saving the consumer and letting the CDN tank and we import inflation later. We've had a 60c dollar before
10/10s always sell.
Hey Zhen do you think rates/market sentiment might change in time for a stronger fall market???
I think there's a good chance. The question is will that sentiment change cause all this excess inventory to be absorbed? If not then weak fall market. Prices can't go up outside of seasonal swings with so much inventory.
@@PrimePropertiesTO Fair, cheers! Great videos, i find them quite objective and data driven, excellent work!
My friend just sold her place for 1.3 mil, bought it for .8 mil just a few years ago. Lots of interest, sold immediately.
yeah, market is crazy still. All these comments saying its down and is going down is just people projecting their hopes.
Entry level freehold?
@@vert911 they’re dreamers
so why would anyone do anything else than real estate in this country? If u can make 500k doing fuk all but buying a home, takin dumps in it, using it and selling it. This country is digusting.
@@PrimePropertiesTO so why would anyone do anything else than real estate in this country? If u can make 500k doing fuk all but buying a home, takin dumps in it, using it and selling it. This country is disgusting. Everyone and their mom is a realtor who pretends to care in ontario and bc, it is vomit inducing.
Interest rates will only change the sentiment.
But the new mortgage rules will make the damage.
Damage has been done
you are very wooo
No economical meltdown, no rate cuts.
Simple.
How long can investors hold on before dropping the price? I dont get how condos are not tanking in this scenario.
Forever.
I think most sellers in spring tend to hold out for their number normally its the busiest sales period of the year. When average days on market starts passing 6 months for condos I'd imagine some people who need to sell will start to accept the reality of the situation and people shopping for condos will be able to find deals.
because negative cashflow =/= losing money. Buying a gold coin (or bitcoin) is negative cashflow, putting money into your RRSP is negative cashflow.
Supply of condos will be going sharply down in the near future as the units that started in 2020 during the last buying frenzy complete and nothing new comes online.
Condos are the most affordable thing on the market.... when people can't afford a house they get pushed down into condoland.
@@GreenBeanGreenBeangold is up 10% this year, 100% in the past 10 years and 500% over the past 20 years. Property in gold price will drop fast in Canada for the coming decade.
@@andrewmccoll1582 There are a huge amount of units that are vacant right now, not collecting rent but paying huge mortgages and condo fees. They can't sell with the price they want. they will cave in. its just a matter of time. tick tock
rates are going to raise no cuts for 90% over valued mud hut
The price trending up but sales trending down..Why because people’s are finally realized housing price has been pumped up by investors plus some stupid cheer leaders and interest rates is too the bubble about to pop!
Smart ones will sell now and take a little loss. Others will hold on and lose it all. Canada is in a depression. Dont expectcinterest to come down i would expect it to rise. Clearly not even close they are lying massively about all the numbers
If you hold on till interest rate drop to the lowest then prices will hit bottom, strange but that how the end cycle works.
@@tomacml5741 saw it live in real time in Arizona 15 yrs ago. I believe it was actually a test run looking back and knowing now how many of our politicians in the west went to WEF training. Nazis
actually the complete opposite. Rates are about to start to lower and the prices, as before, will skyrocket. This time, they wont be stopping. They waited too long and now will lower quickly, like they waited to long to raise. You need to buy now and hold, and will make hundreds of thousands in the next 5 years. Im sorry if you are renting and see no hope of owning, but thats Canada.
For the next 2 to 3 year, I don't think you will come back here to give me the same message.
@@vert911 As Zhen said very clearly on this video, the variable rates coming down will have very little effect on the market. To get explosive growth you need dumb money speculators to start buying again. And it's those guys that are trying to get out.
90% over value never get a buyer till 100k or less
Ego market is about to pop, shooters become broke real quick.
I'm soft, like this market
😆
Zen has a biased opinion, hes a realtor, he wants business. Wise buyers know houses are coming down and they are not worth what they sold for or what they are listed for now. Buyers do not have a biased opinion, its a fact the housing market is in a bubble. Im not waiting for interest rates to come down, im waiting for house prices to come down, the sellers missed the boat to bad so sad. I would rather go to florida or mexico and buy a house for 200,000 and enjoy 365 days of sunshine. The people that bought since 2021 we all already see they were suckers cause they negative equity going into a growing recession, lets state facts. You marry the price which are way too high still and you date the rates which may come down for a bit but inflation aint going anywhere so rates wont go much lower or stay lower for long.
guy buys building 10 million cant afford intrest after a year so sell now for 6 million lost 6 million one year garbage mud huts aint worth nothin either way 90% over value
Everyone always underestimates how quickly GTA prices will rise. When it happens, they never know why. You cant keep a lid on a boiling pot before it will explode, and that's whats about to happen. In a year every agent will be releasing videos "how did things get this crazy?! We never saw it coming!!". Buyer sentiment will blow through like a hurricane.
The pot only boils with free money. Free money is not coming back! The sooner you wake up that reality the better off you will be. The only Investors that will survive the next five to ten years are the ones that have been in for a long time.
Nobody saw the slow down this quick either. Everyone thought it would be gang Buster spring after Jan and Feb. Point is we have some hurdles to jump through first before any boom time
People are renewing at around double their previous rate and in some cases triple. That’s thousands of dollars going towards servicing debt at homes worth less than when they bought it. I don’t think people realize we will be in recession when rate cuts come. This time is indeed different and many sellers holding out will find out what selling a home in a recession is like. We’re never going back to pandemic level rates. Federal gov has finally wisen up to the dangers of fast population growth on the market.
Government needs to build more homes first if they plan to bring in more immigrants.
No if. Dumb electorate should forbid them to bring anyone at all. And it says if.. 😂
Nobody buying property in Canada 😂
The 7000 sales in GTA says differently
I just want you to know I always click on your ads and leave a down vote. So you get charged and also lose rank on TH-cam.
Collapse of biblical proportions coming.
Tine to be greedy when everyone is scared?
Immigrants and refuses flood coming soon
Hold your grounds sellers
i can smell it..literally. Canada is an overpriced sheethole. and nothing less. time to get the f out...good lord.
Disagree Zhen, when cuts start, they will continue and the prices will boom, lots of people sitting on the sidelines waiting for cuts before buying.
LOL
Agree to disagree. Did you hear my point about the stress test on fixed qualifications?
History has always shown that asset classes tank even faster when rate cuts arrive after a hike cycle. Anyone sitting on the sidelines isn’t going to jump in when rate cuts arrive due to the lag time, by the time the cuts take effect we’ll be in a declining market and those people will hold off even longer. We’re currently in a market crash, you just haven’t felt it yet.
Market crash is here for ĺong time hause price is very high compared to income i have townhouse for sale already lowered price twice still no buyers small town ont 1hr to Toronto only 350,000 thousand dollars smal maintenance fee of 315 including water tax 1400 still no buyers market just crash same townhouse in Durham minimum 650,000 whit double expenses and double price rent this unit is 2 100 plus hydro so buyers where are you.