Money What it was like to get caught in Toronto's record housing slump

16:07  12 april  2018
16:07  12 april  2018 Source:   bloomberg.com

Toronto homes sales, prices slump in March

  Toronto homes sales, prices slump in March Toronto homes sales sagged in March, tumbling 39.5 percent from the previous year, as tighter mortgage rules and higher borrowing costs dampened demand, data showed on Wednesday. Sales of detached homes plunged 46.3 percent and condo sales dropped 32.7 percent, as many would-be buyers put their plans on hold, the Toronto Real Estate Board (TREB) said.The average selling price in the Toronto area was C$784,558 ($613,799), down 14.3 percent from C$915,126 in March 2017, though up 2.1 percent from February 2018.The average selling price for a detached home, the most expensive segment of the market, plunged 17.

Toronto ’ s housing market has seen a stunning slowdown in the past year. Now one brokerage has cataloged the damage for 988 homeowners who got caught in the eye of the hurricane. Sellers aren’t panicking in Toronto ’ s slumping housing market.

Toronto ’ s housing market has seen a stunning slowdown in the past year. Now one brokerage has cataloged the damage for 988 homeowners who got caught in the eye of the hurricane.

Condominium windows are seen illuminated at night in Toronto, Ontario, Canada, on Friday, May 26, 2017. Canadian mortgage growth is slowing as the country's policy makers step up efforts to cool overheated housing markets in Vancouver and Toronto. With four of Canada's biggest banks reporting second-quarter results, the trend shows that growth in home loan portfolios is easing and in some cases shrinking.: Condominium Construction As Canada Banks See Mortgage Growth Slow Amid Measures© Bloomberg/Bloomberg Condominium Construction As Canada Banks See Mortgage Growth Slow Amid Measures

(Bloomberg) -- Toronto’s housing market has seen a stunning slowdown in the past year. Now one brokerage has cataloged the damage for 988 homeowners who got caught in the eye of the hurricane.

In the space of four months last year, the homeowners lost a collective $135 million (US$107 million) as the median house price slid 18 percent, a faster decline than any major market during the U.S. market crash, according to Realosophy Reality Inc.

The story goes like this: The median house price surged 30 percent from January to peak at $765,000 in March, largely driven by investors who were pouring money into the market for quick returns, Realosophy said in a report. To tame the beast, the government instituted a series of regulations, including a foreign buyers tax, starting in April.

GTA home sales down 40 per cent in March compared to last year, report shows

  GTA home sales down 40 per cent in March compared to last year, report shows GTA home sales down 40 per cent in March compared to last year, report showsTREB reported 7,228 residential transactions last month in the GTA, a steep drop from the record 11,954 sales reported in March 2017. Last month’s figure is down 17.6 per cent compared to average March sales for the previous 10 years.

“ What It Was Like to Get Caught in Toronto ’ s Record Housing Slump ” – Bloomberg. ===== Bitcoin is crashing … upwards, “The biggest cryptocurrency climbed as much as 16.9 percent, piercing both the ,000 and the ,000 levels in a matter of minutes.

Some 866 homeowners had clinched a sale but were not able to close, eventually selling to another buyer later in the year for $140,200 less on average. Some buyers had to walk away as they weren’t able to sell their own homes or the banks appraised the house for less than what they agreed to. Another 122 sellers sold their houses for an average $107,325 lower than what they bought it for earlier. By the time the dust had settled in July, the median price had dropped to $626,000 from $765,000 in March.

Condos Next?

To put that 18 percent four-month decline in perspective, it took major U.S. cities 20 months on average for prices to fall 18 percent from their peaks between 2005 and 2006, with Miami the shortest at 12 months, according to the report.

Who are the foreign condo investors in Toronto? A new study sheds some light

  Who are the foreign condo investors in Toronto? A new study sheds some light Who are the foreign condo investors in Toronto? A new study sheds some lightUntil now, not much has been known about the largely invisible ranks of condo investors, nearly half of whom feed the region’s vacancy-hungry renters by leasing their properties.

What It Was Like to Get Caught in Toronto ' s Record Housing Slump #TorontoRealEstate #WestviewRealtyInc https Find what's happening. See the latest conversations about any topic instantly. Never miss a Moment. Catch up instantly on the best stories happening as they unfold.

What It Was Like to Get Caught in Toronto ' s Record Housing Slump . Toronto ’ s housing market has seen a stunning slowdown in the past year. Now one brokerage has cataloged the damage for 988 homeowners who got caught in the eye of the hurricane.

“The rapid rise in investor demand coupled with their rising negative cash flow suggests that a speculative mood hit Toronto, reflected in investors who appeared to believe they could make easy money by buying what they perceived to be a safe and secure asset, single family homes,” Realosophy President John Pasalis said in the report. “When the market unwinded, the areas with the biggest decline had the highest percentage of investors.”

The Toronto homes that Realosophy tracked were low-rise, largely detached homes with an average of 135 days between the first and second transactions. The average decline in prices for the properties was 12 percent, though some Toronto region suburbs saw a deeper plunge than others. A total of 1,784 properties that were sold in 2017 and subsequently relisted did not sell, according to Realosophy.

For now, prices have largely stabilized for detached-homes. But there’s a new hot spot to watch out for: Toronto’s condominium market has seen prices soaring about 20 percent since last February and is a target for speculative investment.

Toronto Real Estate's Harsh New Reality: Buyer Beware

  Toronto Real Estate's Harsh New Reality: Buyer Beware Until recently, Greater Toronto's housing market had been something of a fairy tale. But now, with home sales in the metro area down nearly 40 per cent over the past year, and prices down 14 per cent in that time, the market is doing something it hasn't done in a good three decades: It's creating losers.

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What it was like to get caught in Toronto ’ s swift and brutal housing plungehttp get - caught - in -torontos- record - housing - slump … Never miss a Moment. Catch up instantly on the best stories happening as they unfold.

“The condo segment is probably the one thing that’s potentially going to cause some vulnerability in the market in Toronto,” Pasalis said. “But everyone’s been calling for a condo crash in Toronto for 10 years -- it’s hard to predict.”

To contact the reporter on this story: Natalie Wong in Toronto at nwong133@bloomberg.net.

To contact the editors responsible for this story: Daniel Taub at dtaub@bloomberg.net, David Scanlan at dscanlan@bloomberg.net, Jacqueline Thorpe

©2018 Bloomberg L.P.

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TORONTO - The Toronto Raptors are in unchartered waters. For the first time ever, Toronto finds itself as an overwhelming playoff favourite following its 130-119 win over the Washington Wizards on Tuesday night. That gave the Raptors a 2-0 series lead for the first time in their history. Toronto opened with a 114-106 victory in Game 1, the first time it had won a playoff opener since 2001. The Raptors finished the regular season with an Eastern Conference-best 59-23 record.Toronto head coach Dwane Casey says the role of solid favourite is one the Raptors are comfortable with.

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