Honestly, you just drew a trend line on the Toronto detach homes and it showed that prices are actually breaking lower following the condo market. And this is exactly what happens. Condos drop first then pull down the overvalued detached homes because GDI is rolling over. Incomes are rolling over with interest rate cuts. This is what happened in the 90s.
@ this has been a 22 yr run up in prices since 1999. It’s a record. A whole generation of people have been conditioned and brainwashed to think prices will never go down. And this has been supported by the various levels of govt. We should have had a correction in 2008 but the govt stepped in a pumped home buying and investment. So who knows if people will continue to step back now and let prices finally correct. The long term average trend line is 23% below the average price now. A normal correction would pull prices below that level. Will it happen? That’s the big question.
Dog crate condos and these tiny two bedroom places will struggle, not sure is a single detached home will fall all that much, we’re building very little and they are the most desirable units. The issue is people being able to afford it.
Nice video…What’s the point of building purpose built rentals when they can stop paying rent anytime they like … and you can’t get them out for months and months. Awesome business model.
Actually we double checked and it's right - you can use Ratehub or our calculator to check: www.ratehub.ca/mortgage-payment-calculator www.elevatepartners.ca/calculators/total-return-projections/
You don't account for the lowest record builds on the supply side that occurred in 2024, will continue into 2025, and projected to maintain until end of 2026. Any shocks in the market take ~ 2 years to materialize. What do you think will happen in 2027 when rates have come down, supply is at a record low, and the difference in price between low rise and high rise has skyrocket? Demand will return to the condo market because of need and viability. Investors will return at the same time due to opportunity. This will likely happen sooner than 2029.
You are forgetting there will be next to zero population increases with immigration been grounded to a halt. Who are the investors going to rent the buildings to? Study permits is also been slashed to extreme lows. So i agree with BMO
@ElevateRealtyCa It doesn't need to skyrocket. As the delta between low rise and high rise increases, there will be an inflection point where financially a condo makes more sense. And since nearly 50% of market activity is first time home buyers, this will be markedly pronounced.
@alcasino1380 Population growth is only 1 factor. Compare population against available housing. If population stays stagnant and development continues at pace with historical levels, it would take years of development across varying asset classes just to meet CURRENT demand (ie those already here). So, again, need to look at this holistically.
Condo price is not going to skyrocket due to real estate developers building rental towers instead of condos due to a lot of support through funding and the new rentals are larger units than condo units which appeal more to families. There are a lot of new rental towers being built and plenty more in the pipeline.
Read the complete BMO housing report here: economics.bmo.com/en/publications/detail/c59a7f25-67fa-4f89-a122-7d8130c334cc/
Honestly, you just drew a trend line on the Toronto detach homes and it showed that prices are actually breaking lower following the condo market. And this is exactly what happens. Condos drop first then pull down the overvalued detached homes because GDI is rolling over. Incomes are rolling over with interest rate cuts. This is what happened in the 90s.
Homes were crushed back then!!
@ this has been a 22 yr run up in prices since 1999. It’s a record. A whole generation of people have been conditioned and brainwashed to think prices will never go down. And this has been supported by the various levels of govt. We should have had a correction in 2008 but the govt stepped in a pumped home buying and investment. So who knows if people will continue to step back now and let prices finally correct. The long term average trend line is 23% below the average price now. A normal correction would pull prices below that level. Will it happen? That’s the big question.
@@kevinn1158yup.
Anyone buying a single family home is buying at the top of a massive bubble.
Dog crate condos and these tiny two bedroom places will struggle, not sure is a single detached home will fall all that much, we’re building very little and they are the most desirable units. The issue is people being able to afford it.
@mdfmk1234 Single detached homes are going to be build at much higher levels in the coming years. The free market wins in the end.
Nice video…What’s the point of building purpose built rentals when they can stop paying rent anytime they like … and you can’t get them out for months and months. Awesome business model.
where is the correction???? I don't see price going down
Reverse immigration.
Give first time homebuyers 1% fixed loans to build their own homes.
Then focus government resources on utilities expansion.
Build their own homes? Do you know how much it costs to build a house from existing plans? The small house will still run you 450K not including land.
@melissagreye8445 so spend more money on a house someone else has built?
@@jacob9583 It depends on the cost of land, where you are building and how many square feet.
@@melissagreye8445 Yes I know, but that also applies to a house you purchase + a premium that the seller wants to make + realtor commission
Run the numbers on a $1M mortgage at 4.5% over 30 years. You're almost paying for the house 2x.
that calculation of mortgage payment for 30 years am @ 4% with 20% down comes to $3787 not $3424
Actually we double checked and it's right - you can use Ratehub or our calculator to check: www.ratehub.ca/mortgage-payment-calculator www.elevatepartners.ca/calculators/total-return-projections/
You don't account for the lowest record builds on the supply side that occurred in 2024, will continue into 2025, and projected to maintain until end of 2026. Any shocks in the market take ~ 2 years to materialize. What do you think will happen in 2027 when rates have come down, supply is at a record low, and the difference in price between low rise and high rise has skyrocket? Demand will return to the condo market because of need and viability. Investors will return at the same time due to opportunity. This will likely happen sooner than 2029.
BMO is saying that they don’t expect prices to skyrocket in ANY market no matter if it’s low rise or condos. Time will tell!
You are forgetting there will be next to zero population increases with immigration been grounded to a halt. Who are the investors going to rent the buildings to? Study permits is also been slashed to extreme lows. So i agree with BMO
@ElevateRealtyCa It doesn't need to skyrocket. As the delta between low rise and high rise increases, there will be an inflection point where financially a condo makes more sense. And since nearly 50% of market activity is first time home buyers, this will be markedly pronounced.
@alcasino1380 Population growth is only 1 factor. Compare population against available housing. If population stays stagnant and development continues at pace with historical levels, it would take years of development across varying asset classes just to meet CURRENT demand (ie those already here). So, again, need to look at this holistically.
Condo price is not going to skyrocket due to real estate developers building rental towers instead of condos due to a lot of support through funding and the new rentals are larger units than condo units which appeal more to families. There are a lot of new rental towers being built and plenty more in the pipeline.
Thanks for sharing!
Thanks for watching!
😂😂😂😂
Mkt needs a cool 1/2 lower from her
Clueless