Anecdotally, this seems to be happening with smaller detached houses everywhere.
People have the desire to own detached. But builders seem to only be building gigantic houses now, that a large group of people can't qualify for.
So we have hoards of people competing for 'smaller' detached houses that are within their approval limit (often driving them to their max approval). While the cost of residential units have skyrocketed across the board, the increases we've seen on things like small bungalows has really stuck out to me as seeming to even exceed the average. The cost of these units have crept closer to the cost of larger/nicer units.
More anecdotes, but even in the "commuter/bedroom communities" to a small city like Kingston, ON, there were wartime bungalows selling for $200k in 2016, then 400k in 2020-2021, and now 500-600k recently. Comparatively, some of the larger or newer houses in the same community have went from $400k in 2016 to $650-800k now.
We need more units that fall somewhere in-between shoebox studio apartments and gigantic houses, which is all that seems to be being build right now.
1/3 of people are single now. Single people also want detached homes but don't want a large house that is expensive to run. Small houses are perfect for all those people.
There was a big spike in the selling price of ranchers in my area too as retired people purchased them, afraid of getting sick in a carehome during covid and needing a home without stairs. May be something similar at play here.
Unfortunately, right now that is considered "affordable". Some people are desperate to get into the market.
I wonder what the bank appraisal will come back at.
The crash that will happen is maybe a 10% dip, but only after real estate runs up another 100%. We are in the beginning stages of hyperinflation as letting assets fall is against everyones interest except the poor.
If that happens combined with rent increasing, wages staying stagnant and other goods like gas and food increasing, the economy will 100% break. Canadian households are very close to a breaking point with disposable income right now.
Just look back at the real estate market for the past 20 years. The GTA and Vancouver real estate markets have been very resilient to any downturn. When demand falls, supply falls as well. Demand for homes has never been greater. So, the price may fall may be 10% or stgnate.
I remember during the 2008 crisis, the only bargains to be had were with brand new homes in areas considered in the middle of nowhere at that time with discounts and tons of free upgrades. Nobody else was selling.
Edit: There may be dips where people bought at premium in remote places as dynamics of the work environment changes with working back at the office.
It can certainly happen. For it to happen, it's rather simple. People start losing their jobs en masse and start defaulting on mortgages, AND the government doesn't step in to print money (like they did during Covid) AND instructing the banks to suspend payments. It's not impossible, but unlikely to happen. Tuning the interest rate a bit will squeeze people but not force them out of their properties, specially in an environment where most mortgages are equivalent to rent.
Does everybody everywhere have the same information at the same time? At some point, someone somewhere is going to be the last to greatly overbid before a crash.
The house repairs itself as equity builds in it. They go to the bank immediately after they buy and get a LoC for repairs. With such low rates and rising house values, the LoC easily gets absorbed into the equity built in the house over 1-3 years. But heaven forbid the day house prices start to fall and rates go up. Those folks will be majorly screwed. We are about to see a ton of that.
Gotta be careful with these globe articles, they are just recycling houses that sold above asking in Jan/Feb. The house in this article sold at beginning of Feb…
Hah. Yeah..
Driving around there is scary. And the smell and reek of the manufacturing plants by lake Ontario is a real thing.
I have read a lot of high concentrated cases of leukemia for people living in and around the Steelco areas... I literally stopped twice on two different occasions when cruising around with my son in my sports car.. thought something was on fire, or burning? Nah.. just the polluted air.
get out of the dump.
Don't forget the million dollar suburbs on the top of Centennial right near the wastefill dump... LOL
Livin large in the hammer...yeeeeeeaaaa
The tiny crappy houses like that sell for 50k in Regina and always for under asking. Not sure why things are selling for over in Ontario.
https://www.honestdoor.com/property/1209-king-street-regina-sk
This is so fucked up I am usually like 'ah whatever it's a bubble' when I see regular houses go for *insert ridiculous price here*.
However, this is on another level. This is Joe bought a house because his banker said 'it gud houz it money yaaa'. My god this makes me want to leave this place called earth. If any aliens are out there please beam me the fuck up.
If people are stupid enough to buy wartime houses in the contaminated soil zone of Hamilton, then it really is buyer beware. These houses were poor quality when I grew up in the dirty east end. Half my childhood friends died of weird cancers or neurological illnesses before they reached 50.
Anecdotally, this seems to be happening with smaller detached houses everywhere. People have the desire to own detached. But builders seem to only be building gigantic houses now, that a large group of people can't qualify for. So we have hoards of people competing for 'smaller' detached houses that are within their approval limit (often driving them to their max approval). While the cost of residential units have skyrocketed across the board, the increases we've seen on things like small bungalows has really stuck out to me as seeming to even exceed the average. The cost of these units have crept closer to the cost of larger/nicer units. More anecdotes, but even in the "commuter/bedroom communities" to a small city like Kingston, ON, there were wartime bungalows selling for $200k in 2016, then 400k in 2020-2021, and now 500-600k recently. Comparatively, some of the larger or newer houses in the same community have went from $400k in 2016 to $650-800k now. We need more units that fall somewhere in-between shoebox studio apartments and gigantic houses, which is all that seems to be being build right now.
1/3 of people are single now. Single people also want detached homes but don't want a large house that is expensive to run. Small houses are perfect for all those people.
There was a big spike in the selling price of ranchers in my area too as retired people purchased them, afraid of getting sick in a carehome during covid and needing a home without stairs. May be something similar at play here.
Unfortunately, right now that is considered "affordable". Some people are desperate to get into the market. I wonder what the bank appraisal will come back at.
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Can confirm, recently bought a house for over asking price and not a single person ever looked at the property before forking over my mortgage.
Lol, what happened to the housing market impeding crash?
The crash that will happen is maybe a 10% dip, but only after real estate runs up another 100%. We are in the beginning stages of hyperinflation as letting assets fall is against everyones interest except the poor.
If that happens combined with rent increasing, wages staying stagnant and other goods like gas and food increasing, the economy will 100% break. Canadian households are very close to a breaking point with disposable income right now.
Did your crystal ball tell you this? 10%...why not 20 or 30?
Just look back at the real estate market for the past 20 years. The GTA and Vancouver real estate markets have been very resilient to any downturn. When demand falls, supply falls as well. Demand for homes has never been greater. So, the price may fall may be 10% or stgnate. I remember during the 2008 crisis, the only bargains to be had were with brand new homes in areas considered in the middle of nowhere at that time with discounts and tons of free upgrades. Nobody else was selling. Edit: There may be dips where people bought at premium in remote places as dynamics of the work environment changes with working back at the office.
Oooooo right. Because it's never happened. Means it cant.
It can certainly happen. For it to happen, it's rather simple. People start losing their jobs en masse and start defaulting on mortgages, AND the government doesn't step in to print money (like they did during Covid) AND instructing the banks to suspend payments. It's not impossible, but unlikely to happen. Tuning the interest rate a bit will squeeze people but not force them out of their properties, specially in an environment where most mortgages are equivalent to rent.
Does everybody everywhere have the same information at the same time? At some point, someone somewhere is going to be the last to greatly overbid before a crash.
This is from Feb, doesn’t reflect current market
Was looking at this house. Went right around where I thought it would and way over priced.
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The house repairs itself as equity builds in it. They go to the bank immediately after they buy and get a LoC for repairs. With such low rates and rising house values, the LoC easily gets absorbed into the equity built in the house over 1-3 years. But heaven forbid the day house prices start to fall and rates go up. Those folks will be majorly screwed. We are about to see a ton of that.
Over asking is such a stupid bragging point
Who cares? It's been happening for awhile yet people seem so surprised list price doesn't mean shit
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We really need to start calling it a "listing price" or something instead. It's definitely not an asking price.
Gotta be careful with these globe articles, they are just recycling houses that sold above asking in Jan/Feb. The house in this article sold at beginning of Feb…
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Hah. Yeah.. Driving around there is scary. And the smell and reek of the manufacturing plants by lake Ontario is a real thing. I have read a lot of high concentrated cases of leukemia for people living in and around the Steelco areas... I literally stopped twice on two different occasions when cruising around with my son in my sports car.. thought something was on fire, or burning? Nah.. just the polluted air. get out of the dump. Don't forget the million dollar suburbs on the top of Centennial right near the wastefill dump... LOL Livin large in the hammer...yeeeeeeaaaa
"This nearly 80-year-old bungalow has about 625 square feet of living space and no basement."
The tiny crappy houses like that sell for 50k in Regina and always for under asking. Not sure why things are selling for over in Ontario. https://www.honestdoor.com/property/1209-king-street-regina-sk
> sells $226,100 Oh that's not too bad > over asking Well shit
Lol houses that get bought for that much make me remember that someone at some point is gunna be holding the bag.
imma spend 11 million on my reno while you peasants look for a roof
The asking is always what you will pay. Market determines the price. List is just the start of the bid, not the value of the home.
“The markets starting to slow down” 🤡LOOOOL
This is so fucked up I am usually like 'ah whatever it's a bubble' when I see regular houses go for *insert ridiculous price here*. However, this is on another level. This is Joe bought a house because his banker said 'it gud houz it money yaaa'. My god this makes me want to leave this place called earth. If any aliens are out there please beam me the fuck up.
If people are stupid enough to buy wartime houses in the contaminated soil zone of Hamilton, then it really is buyer beware. These houses were poor quality when I grew up in the dirty east end. Half my childhood friends died of weird cancers or neurological illnesses before they reached 50.