Toronto is crashing! Check out this interview on the podcast channel : ua-cam.com/video/kB45ydVbDuA/v-deo.htmlsi=R79lzCS2y-YgFB0B Need a VPN? www.expressvpn.com/marketmania
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
Given the current market situation and the precarious state of the economy, I would recommend refraining from investing in stocks for a while or, alternatively, seeking guidance from a financial advisor. However, keeping a portion of your wealth in gold remains a wise choice.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
Yay I live in Toronto. I rent a condo and periodically my landlord sends me a notice about how he is trying to sell it. Last week he wrote saying he's lowered the price again - because in 2 months only 2 people have come to look at it. As the person who's getting kicked out I find it hard to feel sorry for him.
@@paul6925 Wow , that's wild ! My Dad lives in a building for about twelve years now , he pays $1600 for a two bed one bath by Downsview ...everyone else new the past four years pays well over $2500 ...it's INSANE...pretty sure as per the law if you signed a standard leace you technically go with the sale of the condo/home . Unless I'm wrong under condo laws but generally Tennant's go with the sale 🤭
@@sophrosyne5900 Yea I’m a bit confused about the rules. I need to look into it more. It is insane: I sort of hate this place anyway (the walls are paper thin) but there’s no way I’m moving out because I’ll never find anything cheaper … yet!
They thought they were being slick, taking advantage of a Ponzi scheme basically but they're left holding the bag... no buyers now that people are getting laid off left and right. A few basis points in interest rate won't change anything now.
People are still waiting for way over what the market will pay right now. I'm still seeing 450 dq ft investor condo units in the $890 range that have been sitting on the market for months. When they should be priced at $425 - 450. Investors are leaving the market and the average purchaser does not want such small units at that price.
@@PWingert1966should be at $200k for a bachelor - at most. Think of value for the dollar. In a condo you cant have a garden, work on your car, smoke a joint or even fart. Same money can buy you a home on acreage if you're smart.
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
With the economy in the toilet, even 70% is too expensive for young buyers and first time home owners. It's an absolute travesty. Spend like San Francisco. Earn like Missouri. Live in a dump with insane stress. Welcome to the great nation of Canada.
It can also adjust upwards I.e if home prices stay the same but wage inflation doubles then houses halved in value in real terms as income to home affordability improved from 20:1 x income to 10 x income. I’m not saying whether that will happen or not but that’s also how this mess can be fixed.
@@startaremotecareer If wages had indeed inflated as they should have since 2014, we wouldn't be in this situation today. The CoL crisis is out of control, mainly because of weirdly low wages in Canada first, and inflation second.
I have no sympathy for any of these buyers that bought these houses and decided to put an offer of several thousands of dollars over market value just to be able to say they own a home.
I'm not one of those people but I feel like I need to defend those, against your asinine comment... People need homes and many are living within the concept of owning a home being their investment in their future. It sounds like you haven't bought a home in a long time. Try enduring bidding wars with every attempt at buying and feeling like your aspirations will never come true because you're being outbid by people with disposable income. It's easy to look down on people with a narrow lens of reality and shame them. I don't envy anyone trying to buy their first home, after being told the last several years of their life how life actually works, and then finding out it's not like that and it's not affordable. Get a grip and show some rationality.
@@user-e7xn4qBut what made buyers do this?! Fear of missing out? Bidding tens of thousands over asking price. I definitely have sympathy for these folks. I just can’t wrap my brain around it. Why didn’t people just wait a bit? So unfortunate for so many..
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Starting Salaries are also dropping. I was looking for an entry-level position. I was expecting 65K and got two offers for $29k for 35 hour week. I laughed and told them to call me back when they were serious about not paying slave wages. That is about minimum wage at full time 40hr/wek.
Such a simple point, but worth repeating. Land Bubble in CANADA!!!??? The second largest country in the world and arguably the most usable land mass anywhere on the planet. In terms of supply and demand.... we have as much land as Saudi Arabia has oil. We will never run out. How in God's name is it so expensive? With developer fees up 1000% and property tax at remarkably high levels... is it possible that the government wants artificially high prices to drive up the tax base so they can employ 25 % of the population?
Okay, it's expensive: Let's lower taxes. -> Taxes are lowered. We need to build new homes to consider people immigrating, we need money. Ah yes, we will need to build roads too. And bring hydro and electricity. Oh and the utility services, supermarkets, Costco, and other stores won't be able to support more people. Oh, we need to build more schools and hire more teachers too. *Looks in coffer* Hmm, all I see is a piece of tape and note saying "IOU after tax cut". Who is going to pay for all of this? *Shrugs* I guess we'll need to raise taxes again. And before you say stop immigration; start having more babies.
OSFI, CMHC and now Bank of Canada should be charged for deliberately insuring and securitizing sub prime mortgage junk to profit banks. Who really do they work for? Certainly not their owners, the taxpayers.
It pains me to see people bragging about things like this. It's the same crap we here about moving to the east coast. Yeah, it's cheap. Yeah, you can buy something bigger. And you have to deal with snowfall that will bury your home, hurricane season, racism, and an economy that has the interest of no one in the technology sector to bolster. People move there thinking it's an investment, until you realize you want to come back to civilization and have to take on a mortgage again to do so. Houses out there will never be an investment, unless major cities have catastrophic housing crises. With the decline in birth rate, you can be pretty sure you won't see any ROI in our lifetime.
Been watching this 1 house here in the US and it just dropped a million after being listed for 6 months... it's now listed at 4 million... waiting for it to drop another 2.5 million....
The Realestate was banging on my door in southern Ontario at the height of 2022. A tiny bungalow in Oshawa ON went for almost 1.4M. No garage. No updates but a crappy basement apartment. They were saying oh I can get you 1.5M etc. my answer : ya buddy and where am I going to go ???? Get lost.
Exactly, constantly leaving their annoying pamphlets telling you to sell sell sell at inflated prices. Real estate agents also pulled off so many shady scams/deals during this time, I believe CBC Marketplace did an episode covering that.
Losses will mount even higher once the HELOC crowd are factored in. So many folks who bought many years back saw their house valuations reach the stratosphere, then use their house to fund their lifestyle - luxury cars, lavish trips, private school - assuming their house would go up forever. Now they're underwater. All having forgotten that the profit is only real once the house is sold, the cash is in your account, and you've got another place to live. Best decision I ever made: not get a giant HELOC on my modest house. Even if I lose 75% of current prices, I will still have equity.
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
I kept telling people that, they keep denying it and acting like it doesnt exist. I keep telling them its going to crash, they said no its not possible...oh well.
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Awesome video! I was blown away by the recent economic data! There seems to be uncertainty over inflation and the U.S. stock market is at a crucial crossroads. Despite growing concerns among investors, the economy shows signs of resilience which could help Bitcoin remain stable. Interestingly, the crypto market, which is usually correlated with the U.S. stock market, has been moving in the opposite direction. BTC and the Nasdaq are currently bouncing back. However, with the sentiment changing fast now is the perfect time to get into the crypto market..... I have managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Linda Wilburn, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
In a field as rapidly evolving as cryptocurrency, staying updated is crucial. Linda’s continual research and adaptation to the latest market changes have been instrumental in helping me make informed decisions.
One thing to remember is only 11% of Land in Canada is private owned, and much of that private land is farmland. You can't simply build homes on this land as it is not allowed. Land that is divided into lots for building homes is a relatively small amount. Also, the large majority of Canadians want to live in the big cities (not small towns) and Canada only has a few of these. Immigrants flock to southern places like Toronto, Vancouver, Calgary etc, but very few will live in the North where most of the land is.
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
I’m not shocked either i was overbidding 100k over asking 5 years ago on multiple homes and lost.. had this happen for 1 whole year until I bought my grandmas house straight up cuz I was tired of looking and over offering on houses just to lose..
The housing market is not just a land bubble issue. In small towns where the land isn’t overpriced, the homes still are. The bubble was caused by multiple factors, everything from costly regulations, to easy access to financing, to easy access to mortgage insurance like CMHC. If you get rid of each of these, housing would become a commodity again.
There is one more loss that you did not accrue for! That would be from the number of years in which they lived there, when they purchased the home to when they sold the home. Since making the mortgage payments and so much of it goes to interest rates payments. So add up the number of months and of that total how much was principle versus interest, which you may as well add on to the purchase price.
Theres a new subdivision in Otterville ontario, 3 homes built, 2 sold, one is the model home. probably 2 dozen empty lots left. Half the lots had sold signs on them for most of the pandemic, just a couple months ago all the empty lots replaced sold with for sale signs. Just last night, we noticed there is now a for sale sign on the model home, thought that was a bad sign.
Are they all Indian real estate agents on the signs? Any new subdivision here in Hamilton only has Indian realtors and Indian buyers lol. Lemme know cuz if not I'll come move to Otterville.
the 2030 agenda started long ago, but the turbo agenda after GFC 2008 is now 2019. this is planned, once you see the jigsaw puzzle come together, its obvious.by now. Awesome work dude.
But BOC just said rates are going to drop 0.5% in December and another 0.5% in March so just hang in there. Only a tiny fraction of properties even have the potential of being sold in a panic like this. Even a foreclosure sale typically has a reserve price from the bank that is super high. Anyone thinking they are going to pay pennies on the dollar is going to have to be extremely lucky to find such deals.
The problem isn’t so much rates, it’s a lack of equity. The housing market is fuelled with buying and selling and that’s historically been fuelled by existing homeowners taking out equity in their homes to finance the purchase of a new one. You’re now seeing a majority of people who’ve bought in the last 5-10 years and grossly overpaid for their home then refinanced multiple times have zero room to refinance again, stagnant wages and higher rates are just compounding on top of it. It’s one thing that new homeowners are priced out of the housing market, it’s a whole other thing when existing homeowners are leveraged and borrowed out of it.
I m very happy to see news like this. I was in the market to buy a house in 2021. Every time i like a house someone from somewhere will come and pay over 100-150 thousand over the asking. Thus i decided to wait for few years. Now i can see some of those houses for sale around 50-100 thousand less than the asking in 2021. 😂
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
It would be interesting to track the losses on the $20 billion sub prime mortgage backed securities the Bank of Canada took off the hands of banks and put on taxpayers' backs. The default rate on the mortgages in the portfolio I mean.
I must live in a weird area? new houses being built on my street none stop[hay bay area] all custom built huge homes, even an older small 800sqft house sold for 800k!! crazy!! I bought from the bank, power of sale...great way to buy a house!!!! :)
All these purchases are leveraged, so the loss to the buyer is relative to the present value of their down payments and payments. If a buyer put down 20% and sold at a nominal 22% loss, then their real loss is over 100%; they've lost their entire down payment and more.
When a listing drops in price its not a loss - its an adjustment. It's different if it was purchased at one price and sold at another...some of these are just market price drops. Some of these are losses and some are price reductions. Yes market is crashing....but lets be accurate.
Thx for pointing out the “bull whip effect” Luke. Whether it be Financially or an actual bull whip… that effect of the “crack” at the end of it all… is a break in the sound barrier. You have talked about this market mania on your channel and we know what is going on. However… the whip will break the sound barrier… and everyone around the world will hear it when it does. So be it, this had to happen. Its just hard to watch hood people suffer when you know the whip is already way out and coming in slow mo :( Take care my friend
Haha, do you know who bought it? Do you know if the property had been damaged? Is it a divorce instant sale where people sell instantly at a 20% loss to get out of the marriage?
The only ones being burned are those who bought after 2019 for ridiculous inflated prices and those who maxed out home equity lines based on same "values" Pre 2019 average home in my small 8500 population town was 160k- 250k. Still today we have near demolition needed homes selling at 350k. 2018 we listed our duplex for 159k and got no offers-2020 we listed for 280 and got 380 in 2 weeks,no conditions,no inspections and a 30 day close.Fkn insanity.
The argument about Canada lacking land isn't really valid. New York City has some of the most expensive real estate in the world even though USA is one of the largest and least densely populated countries on earth. You can't just choose to build a tower in rural Iowa and think it will serve the same function as a tower in New York City. Likewise, nobody wants land in northern Ontario because there are no jobs in that area.
Surrey has taken far more than our share of Trudeau's immigrants and few if any can afford public transportation let alone down payments for the new condos now being built like weeds. Any idea on who will be buying these new residential apartments?
Lol 50 % drop dream on Maybe in time buck to and calgary there will be those drops. Same story i have been hearimg for 30 years People have short memories. Not to say we are in a down peak but there are ups and downs in real estate. If you know how to buy you would know that. That is why renters stay renters
My buddy just locked in a 1.74 million dollar price for a new build.. speculating that his current home is worth a certain amount now. Brags about it being a certain amount. Its a huge gamble!
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Many had purchased houses as investments… they had multiple properties on huge leverage. If you are in the majority who have been waiting on the side line. This is an amazing time to buy your first house. Market is forward looking the prices today are factored into what can potentially happen 2025 or 2026. Economy will recover and mortgage interest rate will come down. When plan to buy 2025 or 2026. Market than will be looking into 2027 and beyond. House price will go back up. You get to decide what works best for you
The coming losses in Canadian Real Estate will attenuate profoundly across Banking and wider Financial system so-called Financialized Assets.... as the underlying Real Estate "Chattel" valuations correct 'mark to market" into still 4.2 Million Mortgage renewals through Q4/2026, ~650,000 of which are still negatively amortizing increasing Loan balances into little viability let be refi potentiasl..... the corrections therein will be nothing short of massive and proportional within those markets that saw the largest percentage of fomo/speculative based false demand injected into elevated price discovery.... ie: still significant GTA/GVA losses are expected.
The world is gradually moving out of the I work for my boss era, and people who choose to be entrepreneurs are highly securing a brighter future for themselves..
Honestly, I might feel sorry for them, but they made a suffer through the whole pandemic downtown vancouver and still were suffering so honestly, they could suffer a tiny bit to.Maybe they should stop funding.The safe supply lies.It's a billion dollar industry in my neighborhood, and it's actually killing.We see dead people on the streets all the time murdered people et cetera
It's only a problem if the things people LIVE INSIDE of are being wildly speculated on and prices raised massively...oh wait that's what happened before...and it's becoming normal again
You need to account for losses on both sides: the buyer and the lender. It will depend on the size of the down payment, but let’s assume the most common scenario of 20 %. In that case, a 25% loss of value means a 125% loss for the buyer but just over 6% for the lender. Of course, this is before you account for interest and inflation. At 5% interest for a 25 year mortgage the buyer would have paid almost 10% of the 80% they borrowed, so that’s another almost 8% of the purchase cost, but that’s 40 % (!!!) of the down payment. To sum it up: assuming 400k down on a 2 million house, if the house value decreased 25% to 1.5 mill, the buyer lost 500k plus almost 160k in interest payments. That’s about 660k loss on a 400k investment, a whopping 165% loss before inflation. The lender would have ‘made’ about 60k (1.5M - 1.6M + 160k), but again, inflation would eat it all away.
If students are actually being deported…. The value of housing goes down… there should be affordable rentals coming to market. There hasn’t been a change in rental prices in Ontario. 1 bedroom apartments in Hamilton downtown is 2800. This is where greedy slumlords are going to continue to charge crazy rents. The rental market won’t change without laws in place to protect tenants from rental prices.
Toronto is crashing!
Check out this interview on the podcast channel : ua-cam.com/video/kB45ydVbDuA/v-deo.htmlsi=R79lzCS2y-YgFB0B
Need a VPN? www.expressvpn.com/marketmania
Looking for the link to your interview with the Canadian developer, now in Texas, who is raising the alarm on appraisal fraud.
Aha, please forgive me. I see the link now directly in your comment.😊
FUCKING GOOD.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
Given the current market situation and the precarious state of the economy, I would recommend refraining from investing in stocks for a while or, alternatively, seeking guidance from a financial advisor. However, keeping a portion of your wealth in gold remains a wise choice.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
She appears to be well-educated and well-read I ran a google search on her name and came across her website; Thank You for sharing.
In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Don't have a job = can't afford housing.
Have a job = can't afford housing.
So why have a job?
I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Yay I live in Toronto. I rent a condo and periodically my landlord sends me a notice about how he is trying to sell it. Last week he wrote saying he's lowered the price again - because in 2 months only 2 people have come to look at it. As the person who's getting kicked out I find it hard to feel sorry for him.
Lol! How much do you pay if you don't mind me asking ? I rent a 2bed2bath main floor bungalow in Barrie for $2450 and still , that's exspensive af 😅
@@sophrosyne5900 I moved here 8 years ago so it’s only at $1800. 1 bedroom + Den but other suites in building like it are around $2500 now
@@paul6925 Wow , that's wild ! My Dad lives in a building for about twelve years now , he pays $1600 for a two bed one bath by Downsview ...everyone else new the past four years pays well over $2500 ...it's INSANE...pretty sure as per the law if you signed a standard leace you technically go with the sale of the condo/home . Unless I'm wrong under condo laws but generally Tennant's go with the sale 🤭
@@sophrosyne5900 Yea I’m a bit confused about the rules. I need to look into it more. It is insane: I sort of hate this place anyway (the walls are paper thin) but there’s no way I’m moving out because I’ll never find anything cheaper … yet!
If you're prepared to vacate at closing, your LL should chop your rent. Having it vacant if it doesn't sell isn't smart.
I love what's happening!!!!! Greedy people buying overpriced housing..... If u give me in Brampton for free....DON'T want it?!?!?!!
I saw a story that Brampton is increasing their garbage incinerator capacity 5X the current level.
The prices were very inflated for a long time and people bought over priced homes.
it was alot of females and brown people
They thought they were being slick, taking advantage of a Ponzi scheme basically but they're left holding the bag... no buyers now that people are getting laid off left and right. A few basis points in interest rate won't change anything now.
People are still waiting for way over what the market will pay right now. I'm still seeing 450 dq ft investor condo units in the $890 range that have been sitting on the market for months. When they should be priced at $425 - 450. Investors are leaving the market and the average purchaser does not want such small units at that price.
Have you guys heard of this scam to inflate property values to increase the property taxes cities charge? It’s in America, but probably Canada, too.
@@PWingert1966should be at $200k for a bachelor - at most. Think of value for the dollar. In a condo you cant have a garden, work on your car, smoke a joint or even fart. Same money can buy you a home on acreage if you're smart.
And this is just the start, by spring reality will hit home.
Pun intended lol
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today
I cant believe those are million dollar houses. Toronto needs to correct by another 70% to reach normal.
I agree. Those are 300 or 400k houses. Not a million.
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
With the economy in the toilet, even 70% is too expensive for young buyers and first time home owners. It's an absolute travesty.
Spend like San Francisco.
Earn like Missouri.
Live in a dump with insane stress. Welcome to the great nation of Canada.
It can also adjust upwards I.e if home prices stay the same but wage inflation doubles then houses halved in value in real terms as income to home affordability improved from 20:1 x income to 10 x income. I’m not saying whether that will happen or not but that’s also how this mess can be fixed.
@@startaremotecareer If wages had indeed inflated as they should have since 2014, we wouldn't be in this situation today. The CoL crisis is out of control, mainly because of weirdly low wages in Canada first, and inflation second.
I have no sympathy for any of these buyers that bought these houses and decided to put an offer of several thousands of dollars over market value just to be able to say they own a home.
Exactly!
No mercy for this idiots
People are still living in delusion. You cant help them.
I'm not one of those people but I feel like I need to defend those, against your asinine comment... People need homes and many are living within the concept of owning a home being their investment in their future.
It sounds like you haven't bought a home in a long time. Try enduring bidding wars with every attempt at buying and feeling like your aspirations will never come true because you're being outbid by people with disposable income. It's easy to look down on people with a narrow lens of reality and shame them.
I don't envy anyone trying to buy their first home, after being told the last several years of their life how life actually works, and then finding out it's not like that and it's not affordable.
Get a grip and show some rationality.
@@user-e7xn4qBut what made buyers do this?! Fear of missing out? Bidding tens of thousands over asking price. I definitely have sympathy for these folks. I just can’t wrap my brain around it. Why didn’t people just wait a bit? So unfortunate for so many..
A person making 65k can’t afford anything in this market still
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Starting Salaries are also dropping. I was looking for an entry-level position. I was expecting 65K and got two offers for $29k for 35 hour week. I laughed and told them to call me back when they were serious about not paying slave wages. That is about minimum wage at full time 40hr/wek.
Pretty soon 65k will be starting wage at McDonald’s.
@@jonathanandrew2909 it already is if you can hop over the border
I grew up just down the street from that Brampton house. My Mom paid $63K in 1979. Today 1.2 million is a bargain?
3x median wage today comes to 190K max .. should not be over 3.5x median wage
And they are still to expensive - keep on going down please
Such a simple point, but worth repeating. Land Bubble in CANADA!!!??? The second largest country in the world and arguably the most usable land mass anywhere on the planet. In terms of supply and demand.... we have as much land as Saudi Arabia has oil. We will never run out. How in God's name is it so expensive? With developer fees up 1000% and property tax at remarkably high levels... is it possible that the government wants artificially high prices to drive up the tax base so they can employ 25 % of the population?
Well said.
Infrastructure
Okay, it's expensive: Let's lower taxes. -> Taxes are lowered.
We need to build new homes to consider people immigrating, we need money. Ah yes, we will need to build roads too. And bring hydro and electricity. Oh and the utility services, supermarkets, Costco, and other stores won't be able to support more people. Oh, we need to build more schools and hire more teachers too.
*Looks in coffer* Hmm, all I see is a piece of tape and note saying "IOU after tax cut". Who is going to pay for all of this? *Shrugs* I guess we'll need to raise taxes again.
And before you say stop immigration; start having more babies.
It's the communist building codes/development fees.
The vast majority of Canadian land is worthless and uninhabitable. Americans took all the prime territory.
OSFI, CMHC and now Bank of Canada should be charged for deliberately insuring and securitizing sub prime mortgage junk to profit banks.
Who really do they work for? Certainly not their owners, the taxpayers.
The Rothschilds
Carney has appeared to save the banks lol
@@jay1645Carney appears, to be put in as leader of the Liberal party. Not so sure that QE was a good policy for the average citizen.
Thank you ...exactly spot on
Bank of Canada and most other central banks are owned by the Rothschild family.
Didn't take too many brains to see this coming back in 2019.
The real estate market got government aid so it wouldnt collaspe... how can the economy be this bad but its alright to buy a home
..
Lol! Brampton, a complete dump!
I replayed that just to confirm he actually said that.🤣
Bramistan
since highschool we called it brown town. And by we I am not saying white ppl I am saying every race in the school including Indians lol
Brampton is upper middle class, ahead of about 70% of the country.
@drifter6870 Well, it should be renamed to Puunjab now. Lol!
Luke,
I'm up in Fort McMurray. Highest medium income and lowest house prices in Canada. Not selling..
They're not selling because no one wants to live there or move there
But ur up in nowhere ffs
It pains me to see people bragging about things like this. It's the same crap we here about moving to the east coast. Yeah, it's cheap. Yeah, you can buy something bigger. And you have to deal with snowfall that will bury your home, hurricane season, racism, and an economy that has the interest of no one in the technology sector to bolster. People move there thinking it's an investment, until you realize you want to come back to civilization and have to take on a mortgage again to do so. Houses out there will never be an investment, unless major cities have catastrophic housing crises. With the decline in birth rate, you can be pretty sure you won't see any ROI in our lifetime.
@@fingersm. Alberta is a beautiful province. My gosh, not everyone wants to live in stinky GTA
Can you see mountains in Fort McMurry ?
Been watching this 1 house here in the US and it just dropped a million after being listed for 6 months... it's now listed at 4 million... waiting for it to drop another 2.5 million....
House prices are still too high even at a loss
The Realestate was banging on my door in southern Ontario at the height of 2022. A tiny bungalow in Oshawa ON went for almost 1.4M. No garage. No updates but a crappy basement apartment. They were saying oh I can get you 1.5M etc. my answer : ya buddy and where am I going to go ???? Get lost.
You should have taken it
and checked into a rental for the short term.
@@mtrest4easy to say in hindsight!!
Exactly, constantly leaving their annoying pamphlets telling you to sell sell sell at inflated prices. Real estate agents also pulled off so many shady scams/deals during this time, I believe CBC Marketplace did an episode covering that.
I wonder how new homes will do.
They don't really lower prices. They just add more upgrades. Who will buy a middle unit townhouse for 700k?
Smart Gril
Losses will mount even higher once the HELOC crowd are factored in. So many folks who bought many years back saw their house valuations reach the stratosphere, then use their house to fund their lifestyle - luxury cars, lavish trips, private school - assuming their house would go up forever. Now they're underwater. All having forgotten that the profit is only real once the house is sold, the cash is in your account, and you've got another place to live. Best decision I ever made: not get a giant HELOC on my modest house. Even if I lose 75% of current prices, I will still have equity.
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Big thanks to Mark carney!
Well done 👏
Thank you for highlighting the housing market bubble. Glad I'm not in that mess
New build multiplex not sold after 8 weeks on the market in Vancouver. It's so fun to watch
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Mkt is fine.
Still crazy expensive
More yet to come or in other words, WORST has yet to come.
I kept telling people that, they keep denying it and acting like it doesnt exist. I keep telling them its going to crash, they said no its not possible...oh well.
I remember reading somewhere that in the 1930s, house prices dropped 80%
Bottom will be in anbout 2 years once were officially in a recession from interest rate cuts. We havent seen nothing yet
@@TheTruth-cg8vj 80% sounds right, that is exactly what we need to return to our normal and sustainable lives.
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Awesome video! I was blown away by the recent economic data! There seems to be uncertainty over inflation and the U.S. stock market is at a crucial crossroads. Despite growing concerns among investors, the economy shows signs of resilience which could help Bitcoin remain stable. Interestingly, the crypto market, which is usually correlated with the U.S. stock market, has been moving in the opposite direction. BTC and the Nasdaq are currently bouncing back. However, with the sentiment changing fast now is the perfect time to get into the crypto market..... I have managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Linda Wilburn, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
She's often interacts on Telegrams, using the user-name.
@Lindawilburn
In a field as rapidly evolving as cryptocurrency, staying updated is crucial. Linda’s continual research and adaptation to the latest market changes have been instrumental in helping me make informed decisions.
Always backup your trading with a good strategy.
Nice, I was just hodling before I found Wilburn. In my opinion she is the very best out there.
One thing to remember is only 11% of Land in Canada is private owned, and much of that private land is farmland. You can't simply build homes on this land as it is not allowed. Land that is divided into lots for building homes is a relatively small amount. Also, the large majority of Canadians want to live in the big cities (not small towns) and Canada only has a few of these. Immigrants flock to southern places like Toronto, Vancouver, Calgary etc, but very few will live in the North where most of the land is.
Hey, at least with the new homes I can pass a toilet paper roll to my neighbour from my bathroom window.
And this is why you buy the worst house in the nicest area you can.... Can build sweat equity to mitigate losses when it all goes to hell...
Crackhouse downtown never got listed below 1.2M lol
The right choice of an investment has always been a big problem for me I know picking a wrong investment will leave a big scar in the future
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
There are a lot of people with more money than sense.
If you have more money than sense, stay out of the property game.
Great video btw.
Money usually doesnt need common sense.
@@ecclesiastesThreeVerseSeven *uncommon
"Brampton, obviously, complete dump..." LOL!
oh buddy
Who would want to live in Brampton anyway. Unless your from India, your getting out loss or not.
It's in the GTA.
Who wants to live in Saskatchewan? The only positive is if your dog runs away you can still see him two days later.
@@greggarsenault4457 I don't. It's a shithole. Moving next year, spring
@@mickeylickey123 just a little side note...sometimes it’s spelled you’re.
Keep showing off that triple digit IQ.
This man and this channel is a gift to humanity and you watching him are all winners.
Why is land so expensive in Canada = Approximately 41% is federal Crown Land, 48% is provincial Crown Land and the remaining is privately owned.
I’m not shocked either i was overbidding 100k over asking 5 years ago on multiple homes and lost.. had this happen for 1 whole year until I bought my grandmas house straight up cuz I was tired of looking and over offering on houses just to lose..
I have been saying this since 2012 when I saw what happened in Arizona.
You are absolutely correct about the car market
Thanks for the content
22% isn't a loss when wartime houses cost $5000 or less when brand NEW in the 1940s and now cost $500 000.00
The housing market is not just a land bubble issue. In small towns where the land isn’t overpriced, the homes still are. The bubble was caused by multiple factors, everything from costly regulations, to easy access to financing, to easy access to mortgage insurance like CMHC. If you get rid of each of these, housing would become a commodity again.
There is one more loss that you did not accrue for! That would be from the number of years in which they lived there, when they purchased the home to when they sold the home. Since making the mortgage payments and so much of it goes to interest rates payments. So add up the number of months and of that total how much was principle versus interest, which you may as well add on to the purchase price.
Theres a new subdivision in Otterville ontario, 3 homes built, 2 sold, one is the model home. probably 2 dozen empty lots left. Half the lots had sold signs on them for most of the pandemic, just a couple months ago all the empty lots replaced sold with for sale signs. Just last night, we noticed there is now a for sale sign on the model home, thought that was a bad sign.
Are they all Indian real estate agents on the signs? Any new subdivision here in Hamilton only has Indian realtors and Indian buyers lol. Lemme know cuz if not I'll come move to Otterville.
parts and labor a house only costs around $100,000.....1.665 million is the "mark-up"
You can never predict or time real estate market, yet this guy dedicates his channel in doing so. Wild.
Meanwhile in Québec house prices arent budging
the 2030 agenda started long ago, but the turbo agenda after GFC 2008 is now 2019. this is planned, once you see the jigsaw puzzle come together, its obvious.by now.
Awesome work dude.
Do we expect further downside? In Durham Region prices seem to be levelling out around 750,000.00-850,000.00 and selling.
So it seems, but it crash
those houses are still 300k+ more than their worth... add on all the ontario taxes and its not possible
But BOC just said rates are going to drop 0.5% in December and another 0.5% in March so just hang in there. Only a tiny fraction of properties even have the potential of being sold in a panic like this. Even a foreclosure sale typically has a reserve price from the bank that is super high. Anyone thinking they are going to pay pennies on the dollar is going to have to be extremely lucky to find such deals.
Prices just didn't make any sense.
The problem isn’t so much rates, it’s a lack of equity. The housing market is fuelled with buying and selling and that’s historically been fuelled by existing homeowners taking out equity in their homes to finance the purchase of a new one. You’re now seeing a majority of people who’ve bought in the last 5-10 years and grossly overpaid for their home then refinanced multiple times have zero room to refinance again, stagnant wages and higher rates are just compounding on top of it. It’s one thing that new homeowners are priced out of the housing market, it’s a whole other thing when existing homeowners are leveraged and borrowed out of it.
Chinese money laundering from 2008-17 lit the fire plus low int.rates but China in deflation atm and no other group to take it's place atm
The ponzi needs home value to rise indefinitely.
I m very happy to see news like this. I was in the market to buy a house in 2021. Every time i like a house someone from somewhere will come and pay over 100-150 thousand over the asking. Thus i decided to wait for few years. Now i can see some of those houses for sale around 50-100 thousand less than the asking in 2021. 😂
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Biggest real estate bubble popping
Toronto Vancouver house prices ll go down %90 in october december
Dream on
lel
Just because you can type anything you just pull out of your a__ …. doesn’t mean that you should.😉
And that boys and girls is one to grow on.😂
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
It would be interesting to track the losses on the $20 billion sub prime mortgage backed securities the Bank of Canada took off the hands of banks and put on taxpayers' backs.
The default rate on the mortgages in the portfolio I mean.
Another 30-40 % reduction is inevitable in Toronto and GTA.
I must live in a weird area? new houses being built on my street none stop[hay bay area] all custom built huge homes, even an older small 800sqft house sold for 800k!! crazy!! I bought from the bank, power of sale...great way to buy a house!!!! :)
Crazy to buy in toronto now... prices headed much lower...
All these purchases are leveraged, so the loss to the buyer is relative to the present value of their down payments and payments. If a buyer put down 20% and sold at a nominal 22% loss, then their real loss is over 100%; they've lost their entire down payment and more.
Where can we find power of sale houses listed?
While the price reductions seem quite a bit, the resultant net prices are still outrageous, given inflation-lagging salaries.
When a listing drops in price its not a loss - its an adjustment. It's different if it was purchased at one price and sold at another...some of these are just market price drops. Some of these are losses and some are price reductions. Yes market is crashing....but lets be accurate.
It’s insane how tiny the homes are especially considering the land mass of Canada.
You'll never convince me that flipping homes isn't terrorism.
Or washing drug money
Lets not judge, considering the government is the biggest drug dealers we know.
Bravo!!!!
Multi national corporations OUT of the family home market!
Not just FOMO. There are people scam the system for capitals.
abolish property tax first.....
Thx for pointing out the
“bull whip effect”
Luke.
Whether it be Financially or an actual bull whip… that effect of the “crack” at the end of it all… is a break in the sound barrier.
You have talked about this market mania on your channel and we know what is going on.
However… the whip will break the sound barrier… and everyone around the world will hear it when it does.
So be it, this had to happen.
Its just hard to watch hood people suffer when you know the whip is already way out and coming in slow mo :(
Take care my friend
Those are still way too expensive for Brampton and Milton. Both should be no more than 700k
They should be 400k and that's still over priced
Haha, do you know who bought it? Do you know if the property had been damaged?
Is it a divorce instant sale where people sell instantly at a 20% loss to get out of the marriage?
The only ones being burned are those who bought after 2019 for ridiculous inflated prices and those who maxed out home equity lines based on same "values" Pre 2019 average home in my small 8500 population town was 160k- 250k. Still today we have near demolition needed homes selling at 350k. 2018 we listed our duplex for 159k and got no offers-2020 we listed for 280 and got 380 in 2 weeks,no conditions,no inspections and a 30 day close.Fkn insanity.
Looking for the link to your interview with the Canadian developer, now in Texas, who is raising the alarm on appraisal fraud.
Sooo glad I own my home, no debts.
The argument about Canada lacking land isn't really valid. New York City has some of the most expensive real estate in the world even though USA is one of the largest and least densely populated countries on earth. You can't just choose to build a tower in rural Iowa and think it will serve the same function as a tower in New York City. Likewise, nobody wants land in northern Ontario because there are no jobs in that area.
Big loses maybe but most people still can't afford the homes nor qualify for a mortgage
Should say Toronto not Canada
Its all the expensive houses that are getting hammered.
Those with the money will buy them up.
Surrey has taken far more than our share of Trudeau's immigrants and few if any can afford public transportation let alone down payments for the new condos now being built like weeds. Any idea on who will be buying these new residential apartments?
believe it or not - they are minimum 80% presold to get the Money from the Banks for construction - lot of suckers out there
Can't wait for prices to drop further really really low. Maybe next year I might be able to buy a house. 😅
The economy is going next lol
To be expected with zero accounbilty for every power positions across Canada
Have not seen the price drop in Alberta yet. I have been looking for three years and it’s still the same
Lol 50 % drop dream on
Maybe in time buck to and calgary there will be those drops.
Same story i have been hearimg for 30 years
People have short memories.
Not to say we are in a down peak but there are ups and downs in real estate.
If you know how to buy you would know that.
That is why renters stay renters
Suggest you google "Calgary - dollar dealers"
Saskatoon is still rising as people are fleeing those markets.
Wait until they get a taste of a couple winters there.
@@Jed-pk6zg haha exactly. I personally hope the home prices plummet. I have a house hut feel for the next generation
My buddy just locked in a 1.74 million dollar price for a new build.. speculating that his current home is worth a certain amount now. Brags about it being a certain amount. Its a huge gamble!
Huge gamble, yes!
Roughly half of mortgage holders have yet to face higher rates ( tostar) headline today. Party just getting warmed up or in 3rd innings of the collapse ?
Many had purchased houses as investments… they had multiple properties on huge leverage. If you are in the majority who have been waiting on the side line. This is an amazing time to buy your first house. Market is forward looking the prices today are factored into what can potentially happen 2025 or 2026. Economy will recover and mortgage interest rate will come down. When plan to buy 2025 or 2026. Market than will be looking into 2027 and beyond. House price will go back up. You get to decide what works best for you
Not a good time to buy yet because people are not panicking. People are still being greedy they don't get that the housing market is heading south.
Are you delusional enough to believe this?
its not about the land, its about the location.
The coming losses in Canadian Real Estate will attenuate profoundly across Banking and wider Financial system so-called Financialized Assets.... as the underlying Real Estate "Chattel" valuations correct 'mark to market" into still 4.2 Million Mortgage renewals through Q4/2026, ~650,000 of which are still negatively amortizing increasing Loan balances into little viability let be refi potentiasl.....
the corrections therein will be nothing short of massive and proportional within those markets that saw the largest percentage of fomo/speculative based false demand injected into elevated price discovery.... ie: still significant GTA/GVA losses are expected.
Offshore buyers get major screwed, I hope 🙏
Some rules have been put in to keep them away but Chinese money laundering was a big factor in the run from 2008-15. No groups to replace them now atm
Loss or proper PRICING now?
Making money is an action, keeping money is a behavior, Growing Money is knowledge
Assets that can make one successful in life
I. Forex
2.Stocks
3.Shares
@@MrsWhite390You are right.
But I don't know why people remain poor due to ignorance
The world is gradually moving out of the I work for my boss era, and people who choose to be entrepreneurs are highly securing a brighter future for themselves..
Good luck to all the speculation
These absurd prices must continue to drop all the way to 60-70%.
Honestly, I might feel sorry for them, but they made a suffer through the whole pandemic downtown vancouver and still were suffering so honestly, they could suffer a tiny bit to.Maybe they should stop funding.The safe supply lies.It's a billion dollar industry in my neighborhood, and it's actually killing.We see dead people on the streets all the time murdered people et cetera
It's only a problem if the things people LIVE INSIDE of are being wildly speculated on and prices raised massively...oh wait that's what happened before...and it's becoming normal again
You need to account for losses on both sides: the buyer and the lender. It will depend on the size of the down payment, but let’s assume the most common scenario of 20 %.
In that case, a 25% loss of value means a 125% loss for the buyer but just over 6% for the lender. Of course, this is before you account for interest and inflation. At 5% interest for a 25 year mortgage the buyer would have paid almost 10% of the 80% they borrowed, so that’s another almost 8% of the purchase cost, but that’s 40 % (!!!) of the down payment.
To sum it up: assuming 400k down on a 2 million house, if the house value decreased 25% to 1.5 mill, the buyer lost 500k plus almost 160k in interest payments. That’s about 660k loss on a 400k investment, a whopping 165% loss before inflation.
The lender would have ‘made’ about 60k (1.5M - 1.6M + 160k), but again, inflation would eat it all away.
If students are actually being deported…. The value of housing goes down… there should be affordable rentals coming to market. There hasn’t been a change in rental prices in Ontario. 1 bedroom apartments in Hamilton downtown is 2800. This is where greedy slumlords are going to continue to charge crazy rents. The rental market won’t change without laws in place to protect tenants from rental prices.