PBRs are dead men walking, they have to rent for the top most dollar because of the cost of construction, they are not cheaper to build than condos. Them taking the CMHC MLI program for cheap funding means their rents will never cover the maintenance on the units, nevermind the financing costs. The vast majority of them that put money to work because of the 50 year amortization (which is basically an interest only loan) will be losing money every year permanently for the next 20 years. This is much like building anything during the last oil boom in Calgary, where the market went sideways for 15 years and you basically burned your money. My prediction for 2025 is that condos will outperform housing. When the spread of average price of a house and average price of a condo is a constant 750k, that means that condos outperformed (if a house at 1m and a condo at 500k both go up 5 percent, the house went up 50k, the condo went up 25k, the spread between the two widened).... the spread between the two has been shrinking for some time. Most realtors tend to forget that if you bought a house at the peak you lost a larger percentage on a larger dollar base, you are down 300k from the top. Condos down a smaller percentage on a smaller dollar base, are down around 125k from peak.... and in some areas are close to peak prices. The lower interest rates for sure helps investor demand, I for sure will be buying another unit in the spring or summer, maybe two (but not in Toronto).
Homeboy still drinking the Koolaid. '25 is when the chickens come home to roost and the entire market will tank. It's gonna look a lot like 2009 - a real housing crash.
Our predictions are the same I wanna see the video when you compare next year
I predict fixed rates stay the same this year.
I predict prices go up 5%
Merry Christmas and Happy New Year 🥳 Tom! Good predictions!
Lock of 2025 - Tom will hit 25k subs
very nice tempered prediction
Hey Tom, any thoughts on how the federal election will impact the housing market in Toronto ?
I’m not convinced it would impact Toronto directly, but it will have a larger impact on the overall Canadian housing market.
I think it will bring renewed interest and enthusiasm with positive change of leadership!
PBRs are dead men walking, they have to rent for the top most dollar because of the cost of construction, they are not cheaper to build than condos. Them taking the CMHC MLI program for cheap funding means their rents will never cover the maintenance on the units, nevermind the financing costs. The vast majority of them that put money to work because of the 50 year amortization (which is basically an interest only loan) will be losing money every year permanently for the next 20 years.
This is much like building anything during the last oil boom in Calgary, where the market went sideways for 15 years and you basically burned your money.
My prediction for 2025 is that condos will outperform housing. When the spread of average price of a house and average price of a condo is a constant 750k, that means that condos outperformed (if a house at 1m and a condo at 500k both go up 5 percent, the house went up 50k, the condo went up 25k, the spread between the two widened).... the spread between the two has been shrinking for some time.
Most realtors tend to forget that if you bought a house at the peak you lost a larger percentage on a larger dollar base, you are down 300k from the top. Condos down a smaller percentage on a smaller dollar base, are down around 125k from peak.... and in some areas are close to peak prices.
The lower interest rates for sure helps investor demand, I for sure will be buying another unit in the spring or summer, maybe two (but not in Toronto).
I say house prices in TO go up a max of 3.5 percent on the high end
All good predictions but I’m calling for a BoC rate of 1.75-2.25.
I predict Tom will be wrong.
😂 I didn't even watch the video before posting.
Love the crystal ball at the beginning lol :) When you say Toronto do you mean and surrounding areas GTA also?
Houses will drop
Here’s the video i was waiting for :))
All gonna go wrong
Probably!
Unemployment increases
Homeboy still drinking the Koolaid.
'25 is when the chickens come home to roost and the entire market will tank.
It's gonna look a lot like 2009 - a real housing crash.