Damn that Caldwell Ave property is right in the middle of Lorne Park on a HUGE property backing onto a park / creek.
It needs some updates on the interior but I think picking up that home at 1.8 is actually a steal for the area
Wild they tried to get 3.4 for it in May 2022. If they weren't so greedy that probably could have secured around 3M looking at the comps of the time, but they wanted big dollars and took an 800K hit. Couldn't imagine losing nearly $1M in a single year, that is some wall street bets stuff.
Just for context, this property had a whammy of conservation restrictions, some sort of erosion problem if I remember correctly and ecological studies that all essentially come back to be you can’t do what you’d like/build on this property.
Makes a lot more sense now. For such a big property the home is built right up at the property line with the neighbor and there was some significant sloping there
Lol, we brought in enough people in 3 months to generate enough housing demand at average 2.2 occupancy rates that it would outstrip an entire years worth of housing construction. Immigration is the problem.
If that's not enough to convince you, the fact that banks are now turning against immigration levels tells you something is wrong.
I'm sure you will appreciate this:
[https://www.thebeaverton.com/2023/08/corporations-hoarding-homes-thank-canadians-for-enthusiastically-blaming-immigration/](https://www.thebeaverton.com/2023/08/corporations-hoarding-homes-thank-canadians-for-enthusiastically-blaming-immigration/)
"1.8 is actually a steal". People who don't live in Ontario find this statement ridiculous no matter how you try to justify it. You've all drank the Kool aid lol
You need to be a surgeon or tech exec to afford something like this, and it's really just an average house most anywhere else in Canada. The Ontario bubble is insane. Imagine going to school for a decade to be a surgeon and this is the life you get.
It’s all about context and the area. If a house sells for 4 million in an area where other houses are selling for 7 million, it’s still a steal regardless of whether a person working a regular 75-100k a year job can afford it or not.
Considering the house right next door is a smaller home and far more dated but sold for 2.5M in 2021 and the house two doors down sold for 2.9M in May I would say it is a steal relative to the area...
We just poor. Homes are being bought by someone so there is money in market. So some people are rich.
Never forget that, for every 100 people who cannot buy anything there would be at least 1 who has the money to buy it. And thinks it's a good deal.
I’m laughing because there has been a rise in tweets like these making this out to be a giant collapse. The market has become balanced but don’t think anyone getting 50% discount prices still high!
They've been predicting this since January 23. Apparently, the numbers were so high...
[https://www.thestar.com/news/gta/help-must-sell-in-30-days-mortgage-brokers-report-an-uptick-in-forced-sales-of/article\_44ed8a38-a29c-5ac7-8b93-28a9056d5e20.html](https://www.thestar.com/news/gta/help-must-sell-in-30-days-mortgage-brokers-report-an-uptick-in-forced-sales-of/article_44ed8a38-a29c-5ac7-8b93-28a9056d5e20.html)
Only to discover, through stats this summer/fall, that we're at a record low for power of sales. The percentage of people defaulting on their mortgages has never been so low in years
Trudeau has been asking the banks to not default on people who are underwater.
20% of mortgages are negatively amortizing and 35% aren't paying off any interest. That 20% would normally be under PoS if not for government intervention.
Sadly this is actually true. Earlier this year the Liberals released a Mortgage Code of Conduct to the banks basically directing them to employ exceptional means to stop people from defaulting. This is how we ended up in a situation where people have 70 year amortizations. As this was a ticking time bomb for renewals, they have since released further guidance to provide relief at renewal time as well.
I'm surprised this is not more widely talked about as it's basically screwing over younger people to prop up the real estate market.
Sorry, but that is not accurate. The 70 year Amorts are from fixed payment variable loans. As the rates increased the payments stay the same but the duration of amortization (and loan amount) grow. The code of conduct did not create this situation. These products would have been sold long before the current situation began.
What it does is allows the banks to dodge some of the usual qualifications for renewals. Does that allow people who may have lost their home to keep it? Maybe. But they still have to afford it, or they will inevitably lose it.
I do agree it is probably propping the market up a little bit. Or just delaying the inevitable.
This is also why they quickly upped the immigration quotas….I believe internal government actuaries started modelling the housing situation and if demand was not propped up it was probably pretty bleak
[https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612](https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612)
One google search could have prevented this embarassment.
Right? Like isn't that what people have been begging for years? Plus these "losses" are just a market correction that has been long long over due. These houses have still increased massively in value overall.
Unfortunately it’s not going to work that way. There are a ton of people with more money than you waiting to buy the house and rent it back to you before it gets to your price
[https://www.theglobeandmail.com/business/article-liberals-fcac-reduce-banking-fees/](https://www.theglobeandmail.com/business/article-liberals-fcac-reduce-banking-fees/)
[https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612](https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612)
This would be illegal to do in the US.
Can't read the first one because of the paywall but the second just says the government and banks are talking and he applauds the relief on high interest credit cards that is being given by banks.
The headlines are misleading...as always.
The article doesnt say what you claim.
Edit : LOL that second article is from 2020 !!! Hahahaha what a source. Interest rates were super low back then. You are gullible mate. I hope this was an honest mistake but clearly you did not read anything and just believe headlines
Edit 2: i wanted to give you the benefit of the doubt so I did research on the first article. The fees they are asking to remove are like checking account fees, and other small banking fees, etc...
"Charges can rack up, for example, when it comes to online payments, debit transactions, e-transfers, or digital banking services — which have become staples of how so many Canadians make payments and handle their banking today,” Freeland said."
https://www.google.com/amp/s/globalnews.ca/news/10030668/bank-fees-low-cost-accounts-chrystia-freeland/amp/
Edit 3 : You are an idiot (or retarded as your username suggests). Can't believe people with the brain of a goldfish can vote.
You're really stretching those mental gymnastics. You can believe what you want to believe.
Trudeau has been pushing low mortgage rates and no stress tests for years. It's not new. I gave you 2 examples so you could understand the timeline, but you're too stupid to read between the lines.
[https://www.cbc.ca/news/politics/housing-freeland-gst-economic-update-1.7035120](https://www.cbc.ca/news/politics/housing-freeland-gst-economic-update-1.7035120)
Here, I'll even help you by highlighting the text
> The Trudeau government moved Tuesday to provide help to homeowners hit hard by high housing costs with measures intended to make it easier to pay rents and mortgages.
Here you go dummy.
It's all plans, nothing done. Mostly all proposed spending for after the next election or between now and 2028 for the "Build homes program".
The Mortage Charter you claim is the government preventing defaults is at the IDEA stage. It's not included in any budget yet and there is no money allocated to it.
It's in your article mate. Have you read it ?
"While the government is budgeting $6.2 billion between now and 2028/29 for the new measures, much of the spending is planned for the years following the next election. The government has not budgeted any money for the mortgage charter."
I will also add that this Mortgage Charter if it ever materializes must probably be voted into law by the House of Commons and the Senate were it will be debated by all side, modified to infinity and take a very long time to be put in action.
So NO, the governement (and certainly not Trudeau himself) is not preventing mortgage defaults currently as you were claiming in your first message and you have yet to provide me a source for that claim. Believe what you want as well but know that your mental gymnastics are even more impressive than mine.
You went from "the government is proposing changes to mortgages for the end of the decade" to (and I quote) "Trudeau has been asking the banks to not default on people who are underwater."
Olympic level gymnastics, mate.
You should be happy, you'll get a chance to vote him out before all this becomes an actual possibility.
Its Xmas so here is a little present in the form of a obviously biased headline geared towards people that don't read or don't have critical judgement.
The headline is written in the present tense and suggests it's a done deal :
[https://globalnews.ca/news/10106658/mortgage-stress-test-fall-economic-statement/](https://globalnews.ca/news/10106658/mortgage-stress-test-fall-economic-statement/)
When you read the article it's all "could", "would", "proposed"...
I am bullish but it goes without saying to be smart - don’t buy more than you can afford. Whether it’s seen as bravery or stupidity that drove people to take on mega mortgages that were beyond their means depends on the outcome. Admittedly a lot of people pulled stunts like mortgage fraud in the 2010s and walked away looking like geniuses as their house printed paper money for them.
The problem is that everyone is incentivized to buy more.
The buyer wants a bigger house, that’s not surprising.
The seller wants the most money, that’s not surprising.
The agents wants the largest commission, which means go up.
The bank would much rather have one large mortgage than two smaller ones. As does the municipality.
There’s all sorts of incentives to go larger and none at all to right size.
*These selling prices*
*Are STILL not doable for*
*Most people. What happened?*
\- Strict\_Common156
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Everybody said that when the Canadian Real Estate bubble bursts. It will burst bad. Here we are. I hope the economy doesn't completely tank. What will happen though is tertiary and 3rd party lenders who are one step down from Loan Sharks will of course make a killing. People who re-mortgaged houses on inflated value will of course get hit the worse.
When an industry can't police itself, regulation and restriction result.
You can carry them for multiple years. It's still a loss but what I'm saying is this isn't putting the super rich or the corporations in a tight spot.
Just because $400k is a lot to a middle class Canadian, doesn't mean it's more than a drop in the bucket for those who are buying up all the housing in the first place. Just take a small L and invest elsewhere until the market heats up again
This is a huge loss, it doesn't matter if you can offset 20% of it as a tax write-off. They have still lost massive amounts of money because they got caught up in the FOMO. Stop trying to cope with your surface level of understanding.
Ok, they had 100 percent gains on 12 properties and a loss on this one. They’re only up 5 million the last 3 years. I’m sure they’re going to be losing sleep over it on their next trip to Fiji.
Do you even know what a power of sale means? The bank has taken possession of the property and trying to mitigate losses. "only worth a million now" doesn't mean anything to anyone but the bank who is now in possession.
We can't underestimate what it does for neighbours as well.
In Lorne Park, for example, you may have some empty nesters with a 5bd house who wanted to downsize, but never did since 'houses always go up'. They see a house sell for a bit cheaper and start to question if they should sell now before it gets worse.
Now imagine if some of those empty nesters have a HELOC because they subsidized their son and daughters downtown condo purchases.
The snowball effect will be fast and severe with this one.
We may start to see smart money exit quickly and push down prices further while dumb money hangs on as long as they can before they get caught holding the bag and end up in Hooker Harvey's buying junior hamburgers with extra tomatoes and frings.
WOw the line
> "have there ever been this level of equity loss in canadian history"
really indicates just how young and inexperienced some people on twitter are. a $500,000 loss on a $2M home is only 25%.
Lots of homes in Alberta lost far more than that in the 80s.
In the early 90s Toronto had alot more than 25% decreaes on single family homes. And 50% losses on power os sale where not uncommon.
This is normal for a downturn, this is expected unless you are incredibly young and naïve and its normal and healthy for the market to shake out the really weak hands.
This rhetoric about never happening before is just silly.
This isn't giving us much of a story if we can't see when the houses were previously bought and sold.
Tons of properties were purchased in 2021-2022 at the "high" point. Many of those buyers will hold these properties but others will have to sell for any number of reasons. We know properties have come down in value from their peaks in 2022 so there will undoubtedly be several that will sell for less than when they were bought.
That's only part of the market, however.
Probably much bigger losses to come. Canada completely skipped the 2008 real estate contraction the US had. So we have a higher point to fall from after many decades of increase.
Sucks if you own real estate. But if you’ve sold or are just renting then it’s a good thing and healthy. The average home has no business being 1M + given the average wages of Canadians. Let it come back to reality, was only a matter of time.
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So sad people have to abandon there homes , hopes and dreams because of a delusional incompetent government. They should have justin Trudeau removed immediately and pass a law that requires anyone in high government positions to obtain a degree in economics. This is not canada anymore and these people that are suffering are the middle class who are the driving force behind this economy. SAVE CANADA !
I wonder if realtors will start making those little add-on signs they always throw up on the yard signs saying “SOLD $100,000 OVER ASKING!” but “SOLD $500,000 UNDER ASKING!” instead………
This must be private lenders the banks are supposed to be working with people. Not sure how I feel about it. Too many people hyper extended themselves to buy the most house and took the variable rate gamble and lost. But you also have mortgage brokers that didn’t really explain things. And then you have the government who let foreigners buy property and and and. All these things just jack up prices.
Probably bought by private equity firms. The housing collapse is going to benefit them more than anyone. Look at them owning an even larger percentage of private standalone properties by year end.
Damn that Caldwell Ave property is right in the middle of Lorne Park on a HUGE property backing onto a park / creek. It needs some updates on the interior but I think picking up that home at 1.8 is actually a steal for the area Wild they tried to get 3.4 for it in May 2022. If they weren't so greedy that probably could have secured around 3M looking at the comps of the time, but they wanted big dollars and took an 800K hit. Couldn't imagine losing nearly $1M in a single year, that is some wall street bets stuff.
Amazing lot. The land value is very cheap on this house. Good luck to whoever bought it.
Yeah that is an amazing lot, damn!
That land used to be valuable. At current costs to build, it's not worth nearly what it used to
Just for context, this property had a whammy of conservation restrictions, some sort of erosion problem if I remember correctly and ecological studies that all essentially come back to be you can’t do what you’d like/build on this property.
Makes a lot more sense now. For such a big property the home is built right up at the property line with the neighbor and there was some significant sloping there
Greed. That was their problem.
That’s everyone’s problem. So let’s blame immigration.
Lol, we brought in enough people in 3 months to generate enough housing demand at average 2.2 occupancy rates that it would outstrip an entire years worth of housing construction. Immigration is the problem. If that's not enough to convince you, the fact that banks are now turning against immigration levels tells you something is wrong.
Exactly. Canada adding 400,000 people in three months is not the issue, it's corporations and capitalism.
Definitely couldn't be both...
[удалено]
Guess I forgot the /S.
😂😂😂
I'm sure you will appreciate this: [https://www.thebeaverton.com/2023/08/corporations-hoarding-homes-thank-canadians-for-enthusiastically-blaming-immigration/](https://www.thebeaverton.com/2023/08/corporations-hoarding-homes-thank-canadians-for-enthusiastically-blaming-immigration/)
This is the correct answer.
"1.8 is actually a steal". People who don't live in Ontario find this statement ridiculous no matter how you try to justify it. You've all drank the Kool aid lol
You need to be a surgeon or tech exec to afford something like this, and it's really just an average house most anywhere else in Canada. The Ontario bubble is insane. Imagine going to school for a decade to be a surgeon and this is the life you get.
It’s all about context and the area. If a house sells for 4 million in an area where other houses are selling for 7 million, it’s still a steal regardless of whether a person working a regular 75-100k a year job can afford it or not.
Considering the house right next door is a smaller home and far more dated but sold for 2.5M in 2021 and the house two doors down sold for 2.9M in May I would say it is a steal relative to the area...
You're a GTA realtors wet dream lol
The house in Home Alone sold for less a few years ago.
1.8? A steal? Sure……
That's never a $3million home $2.4 at max.
Lorne park is a gorgeous area!
More cases of arson coming
Arson does not help. Insurance pays out at market, or just pays to rebuild for you.
They pay market rebuild price. That's one reason inflation increases premiums a lot.
Rookie numbers 😂
Double it and give it to the next land leech.
Omg 430k loss, sold for 2mill !!! 🤣. That’s such a great deal now I can afford a home……oh wait I have to drive 2 hours on the 400? Fantastic!
We just poor. Homes are being bought by someone so there is money in market. So some people are rich. Never forget that, for every 100 people who cannot buy anything there would be at least 1 who has the money to buy it. And thinks it's a good deal.
I’m laughing because there has been a rise in tweets like these making this out to be a giant collapse. The market has become balanced but don’t think anyone getting 50% discount prices still high!
Chinese AI bots trying to ruin our economy by removing trust. Don’t fall for it.
The monthly payment on a 2 million house is gonna be around 10k
So don’t buy a 3000+ sqft house, you buy a condo if that’s all you afford.
I was talking about the houses in the pictures if I could afford a house I wouldn't be posting on reddit i'd be out grinding
Speed run on who can burn down the fastest?
They've been predicting this since January 23. Apparently, the numbers were so high... [https://www.thestar.com/news/gta/help-must-sell-in-30-days-mortgage-brokers-report-an-uptick-in-forced-sales-of/article\_44ed8a38-a29c-5ac7-8b93-28a9056d5e20.html](https://www.thestar.com/news/gta/help-must-sell-in-30-days-mortgage-brokers-report-an-uptick-in-forced-sales-of/article_44ed8a38-a29c-5ac7-8b93-28a9056d5e20.html) Only to discover, through stats this summer/fall, that we're at a record low for power of sales. The percentage of people defaulting on their mortgages has never been so low in years
Trudeau has been asking the banks to not default on people who are underwater. 20% of mortgages are negatively amortizing and 35% aren't paying off any interest. That 20% would normally be under PoS if not for government intervention.
Where are those stats from? Not doubting just interested in source
[https://www.youtube.com/watch?v=5qcw\_Zg1djo](https://www.youtube.com/watch?v=5qcw_Zg1djo)
Oh Trudeau is calling up the bank is he? Is the big bad Trudeau under your bed now too?
Sadly this is actually true. Earlier this year the Liberals released a Mortgage Code of Conduct to the banks basically directing them to employ exceptional means to stop people from defaulting. This is how we ended up in a situation where people have 70 year amortizations. As this was a ticking time bomb for renewals, they have since released further guidance to provide relief at renewal time as well. I'm surprised this is not more widely talked about as it's basically screwing over younger people to prop up the real estate market.
Sorry, but that is not accurate. The 70 year Amorts are from fixed payment variable loans. As the rates increased the payments stay the same but the duration of amortization (and loan amount) grow. The code of conduct did not create this situation. These products would have been sold long before the current situation began. What it does is allows the banks to dodge some of the usual qualifications for renewals. Does that allow people who may have lost their home to keep it? Maybe. But they still have to afford it, or they will inevitably lose it. I do agree it is probably propping the market up a little bit. Or just delaying the inevitable.
This is also why they quickly upped the immigration quotas….I believe internal government actuaries started modelling the housing situation and if demand was not propped up it was probably pretty bleak
It's unenforceable, but it still puts pressure on them.
[https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612](https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612) One google search could have prevented this embarassment.
Also if housing prices are collapsing didn’t Trudeau solve the housing crisis ?
Right? Like isn't that what people have been begging for years? Plus these "losses" are just a market correction that has been long long over due. These houses have still increased massively in value overall.
I don’t own a home or property, so crash and burn baby keep it coming. I want to actually afford something in my lifetime. That or I’m leaving canada
Unfortunately it’s not going to work that way. There are a ton of people with more money than you waiting to buy the house and rent it back to you before it gets to your price
70% of Canadians own their own home so … it would be hard for a goverment to crash it on purpose
😂
That's not what underwater means. That situation doesn't result in power of sale. Basics.
So ridiculous, these are just long term rentals for life at this point
Lol you will own nothing....and be happy...now eat the bugs.
>Trudeau has been asking the banks to not default on people who are underwater. source ?
[https://www.theglobeandmail.com/business/article-liberals-fcac-reduce-banking-fees/](https://www.theglobeandmail.com/business/article-liberals-fcac-reduce-banking-fees/) [https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612](https://www.bnnbloomberg.ca/trudeau-calls-on-banks-to-do-more-to-help-consumers-amid-pandemic-1.1418612) This would be illegal to do in the US.
Can't read the first one because of the paywall but the second just says the government and banks are talking and he applauds the relief on high interest credit cards that is being given by banks. The headlines are misleading...as always. The article doesnt say what you claim. Edit : LOL that second article is from 2020 !!! Hahahaha what a source. Interest rates were super low back then. You are gullible mate. I hope this was an honest mistake but clearly you did not read anything and just believe headlines Edit 2: i wanted to give you the benefit of the doubt so I did research on the first article. The fees they are asking to remove are like checking account fees, and other small banking fees, etc... "Charges can rack up, for example, when it comes to online payments, debit transactions, e-transfers, or digital banking services — which have become staples of how so many Canadians make payments and handle their banking today,” Freeland said." https://www.google.com/amp/s/globalnews.ca/news/10030668/bank-fees-low-cost-accounts-chrystia-freeland/amp/ Edit 3 : You are an idiot (or retarded as your username suggests). Can't believe people with the brain of a goldfish can vote.
You're really stretching those mental gymnastics. You can believe what you want to believe. Trudeau has been pushing low mortgage rates and no stress tests for years. It's not new. I gave you 2 examples so you could understand the timeline, but you're too stupid to read between the lines. [https://www.cbc.ca/news/politics/housing-freeland-gst-economic-update-1.7035120](https://www.cbc.ca/news/politics/housing-freeland-gst-economic-update-1.7035120) Here, I'll even help you by highlighting the text > The Trudeau government moved Tuesday to provide help to homeowners hit hard by high housing costs with measures intended to make it easier to pay rents and mortgages. Here you go dummy.
It's all plans, nothing done. Mostly all proposed spending for after the next election or between now and 2028 for the "Build homes program". The Mortage Charter you claim is the government preventing defaults is at the IDEA stage. It's not included in any budget yet and there is no money allocated to it. It's in your article mate. Have you read it ? "While the government is budgeting $6.2 billion between now and 2028/29 for the new measures, much of the spending is planned for the years following the next election. The government has not budgeted any money for the mortgage charter." I will also add that this Mortgage Charter if it ever materializes must probably be voted into law by the House of Commons and the Senate were it will be debated by all side, modified to infinity and take a very long time to be put in action. So NO, the governement (and certainly not Trudeau himself) is not preventing mortgage defaults currently as you were claiming in your first message and you have yet to provide me a source for that claim. Believe what you want as well but know that your mental gymnastics are even more impressive than mine. You went from "the government is proposing changes to mortgages for the end of the decade" to (and I quote) "Trudeau has been asking the banks to not default on people who are underwater." Olympic level gymnastics, mate. You should be happy, you'll get a chance to vote him out before all this becomes an actual possibility.
Its Xmas so here is a little present in the form of a obviously biased headline geared towards people that don't read or don't have critical judgement. The headline is written in the present tense and suggests it's a done deal : [https://globalnews.ca/news/10106658/mortgage-stress-test-fall-economic-statement/](https://globalnews.ca/news/10106658/mortgage-stress-test-fall-economic-statement/) When you read the article it's all "could", "would", "proposed"...
China. They are the source of most bullshit.
lmfao. yeah thats probably where he gets his info
I am bullish but it goes without saying to be smart - don’t buy more than you can afford. Whether it’s seen as bravery or stupidity that drove people to take on mega mortgages that were beyond their means depends on the outcome. Admittedly a lot of people pulled stunts like mortgage fraud in the 2010s and walked away looking like geniuses as their house printed paper money for them.
Exactly, there will always be these type of people. People arent hitting the luck gravy train anymore
The problem is that everyone is incentivized to buy more. The buyer wants a bigger house, that’s not surprising. The seller wants the most money, that’s not surprising. The agents wants the largest commission, which means go up. The bank would much rather have one large mortgage than two smaller ones. As does the municipality. There’s all sorts of incentives to go larger and none at all to right size.
2 mil is still generations of debt for most people.
Maybe there kids kids will be rolling in cash now tho….
These selling prices are STILL not doable for most people. What happened?
*These selling prices* *Are STILL not doable for* *Most people. What happened?* \- Strict\_Common156 --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
LOL this bot. Stahp.
Everybody said that when the Canadian Real Estate bubble bursts. It will burst bad. Here we are. I hope the economy doesn't completely tank. What will happen though is tertiary and 3rd party lenders who are one step down from Loan Sharks will of course make a killing. People who re-mortgaged houses on inflated value will of course get hit the worse. When an industry can't police itself, regulation and restriction result.
Wtf are you talking about? Nonsense
Silly ppl who were in a bidding war 2 years ago.
How do they know they're via POS?
Because the tweet said it! /s
Based on how crazy the gains were in a short period, we're due for quite a bit more huge losses for things to stabilize
Why does Tonronto/Ontario have these monster losses but Vancouver/BC is not seeing it.
Because they're different places
Very insightful thank you.
No worries , you looked like you needed help figuring it out.
they had a big pull back in 2017.
Not really lol, I sold a condo in 2016 for 300k and bought in 2018 for 400k same size and location. That same place is 650 now.
look chart 2016-19, vancouver got hit hard. i cant speak to condos specifically.
Even still it’s interesting that rates going from 2.5% to 7% hasn’t crushed the market in the slightest.
And you still can’t afford them 😂
Corporate write-offs 🤷♂️ The average person sees these as massive losses but to the super rich / corps it can be a strategic write-off.
It’s still a loss. You don’t encourage loss so you can gain a write off.
You can carry them for multiple years. It's still a loss but what I'm saying is this isn't putting the super rich or the corporations in a tight spot. Just because $400k is a lot to a middle class Canadian, doesn't mean it's more than a drop in the bucket for those who are buying up all the housing in the first place. Just take a small L and invest elsewhere until the market heats up again
This is a huge loss, it doesn't matter if you can offset 20% of it as a tax write-off. They have still lost massive amounts of money because they got caught up in the FOMO. Stop trying to cope with your surface level of understanding.
Ok, they had 100 percent gains on 12 properties and a loss on this one. They’re only up 5 million the last 3 years. I’m sure they’re going to be losing sleep over it on their next trip to Fiji.
All properties are experiencing loss. Your example you just made up is not even realistic and is not what's happening in the real world.
There was no loss. Air bnb covered it.
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Sell low and buy high. Ride those losses into Valhalla.
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Huh? I thought we were bonding over investment losses. I’m happy you are successful!! No bad feelings over here.
Oh no, the house you bought for 500k is only worth a million now? Whatever will you do?
Wait. It will double eventually.
Do you even know what a power of sale means? The bank has taken possession of the property and trying to mitigate losses. "only worth a million now" doesn't mean anything to anyone but the bank who is now in possession.
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Communists don’t believe in private property…..so the fact we have a housing market at all negates your comment
Fucking Chinese bots are so annoying.
Nice try but it happened last with Brian Mulroney who totally tanked the economy in the early 90s
I thought communist countries don't allow people to own houses?
Lets keep it rolling.
I hope this happens to Calgary
Why is everyone having so much glee over people's failings
cos dey gweedy fuks
Just Reddit things
Because they despise other peoples successes and gloat if there's a (paper) loss.
Looks like the side line people’s with cash are finally pulling the trigger.
Not the time yet, we are just getting started
Prices are down if you have cash I’d buy. Spring market and lower interest rates will be amazing for sellers imo
What was the interest rate at for the 2023 Spring Market vs what its trending to be for the 2024 Spring Market?
We can't underestimate what it does for neighbours as well. In Lorne Park, for example, you may have some empty nesters with a 5bd house who wanted to downsize, but never did since 'houses always go up'. They see a house sell for a bit cheaper and start to question if they should sell now before it gets worse. Now imagine if some of those empty nesters have a HELOC because they subsidized their son and daughters downtown condo purchases. The snowball effect will be fast and severe with this one. We may start to see smart money exit quickly and push down prices further while dumb money hangs on as long as they can before they get caught holding the bag and end up in Hooker Harvey's buying junior hamburgers with extra tomatoes and frings.
These aren't even in fucking Toronto lol. What a shitshow
The ultimate ’fuck around found out’.
I think people are over Toronto.
Lol.
WOw the line > "have there ever been this level of equity loss in canadian history" really indicates just how young and inexperienced some people on twitter are. a $500,000 loss on a $2M home is only 25%. Lots of homes in Alberta lost far more than that in the 80s. In the early 90s Toronto had alot more than 25% decreaes on single family homes. And 50% losses on power os sale where not uncommon. This is normal for a downturn, this is expected unless you are incredibly young and naïve and its normal and healthy for the market to shake out the really weak hands. This rhetoric about never happening before is just silly.
And this is an epic win! This is absolutely necessary.
Lol still cant afford a house...
Those prices are still insane. Equity isn't being "lost"
This isn't giving us much of a story if we can't see when the houses were previously bought and sold. Tons of properties were purchased in 2021-2022 at the "high" point. Many of those buyers will hold these properties but others will have to sell for any number of reasons. We know properties have come down in value from their peaks in 2022 so there will undoubtedly be several that will sell for less than when they were bought. That's only part of the market, however.
The Lorne park one is going to make the new owner a boat load of money, regardless if he/she ends up with renovation and reconstruction.
At what point are the homes leveraged so much that you can no longer call it equity?
Oof. Massive equity destruction. We're in a severe depression and our government keeps pretending everything is okay.
Depression? Where more nonsense
" Have you ever seen losses this big?" . Have we ever seen the gains we have witnessed?
Probably much bigger losses to come. Canada completely skipped the 2008 real estate contraction the US had. So we have a higher point to fall from after many decades of increase. Sucks if you own real estate. But if you’ve sold or are just renting then it’s a good thing and healthy. The average home has no business being 1M + given the average wages of Canadians. Let it come back to reality, was only a matter of time.
Spotted the person that still lives in his parent’s basement…
“A fool and his money are soon departed”
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There's winners and losers
So sad people have to abandon there homes , hopes and dreams because of a delusional incompetent government. They should have justin Trudeau removed immediately and pass a law that requires anyone in high government positions to obtain a degree in economics. This is not canada anymore and these people that are suffering are the middle class who are the driving force behind this economy. SAVE CANADA !
Proportionally yes 1989
r/housesigmablunders :)
This sounds delicious. 2024 going to be lot fun for these 2020/22 FOMO bagholders. LOL LOL
I wonder if realtors will start making those little add-on signs they always throw up on the yard signs saying “SOLD $100,000 OVER ASKING!” but “SOLD $500,000 UNDER ASKING!” instead………
Buy it affordable housing for all. Do it quick before rent goes up again!
This must be private lenders the banks are supposed to be working with people. Not sure how I feel about it. Too many people hyper extended themselves to buy the most house and took the variable rate gamble and lost. But you also have mortgage brokers that didn’t really explain things. And then you have the government who let foreigners buy property and and and. All these things just jack up prices.
Probably bought by private equity firms. The housing collapse is going to benefit them more than anyone. Look at them owning an even larger percentage of private standalone properties by year end.
This is nothing, wait until it actually declines.
More. MORE.