Feels Like Something Drastic Is About To Happen (York Region Real Estate Market Update)
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- Опубликовано: 13 сен 2024
- BOOK A CALL WITH SANTO: calendly.com/t...
In this episode we take a look at the current Vaughan Home Prices, Richmond Hill Home Prices & Markham Home Prices and real estate market trends for week ending May 8, 2024. We discuss how it feels like there is so much pressure on the market, causing fundamentals to go out the window. Listings are growing, sales are slowing, yet prices don't seem to be adjusting to this. It feels like something has to give sooner or later.
This video will focus specifically on Vaughan, Richmond Hill & Markham but be sure to SUBSCRIBE for more reports on other areas!
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Santo Sessa & Daniel Sessa
Re/Max Premier
(647)560-7778
santo@teamsessa.ca
*This video, nor any of the other videos on the Team Sessa Real Estate RUclips channel, do not constitute legal or financial advice. This is strictly intended for educational and entertainment purposes only.
When a seasoned professional, like yourself, cannot make sense of the current market, it says a lot about the market.
It is totally irrational because:
1) the fed gov being too involved (meddling with mortgage terms such as influencing banks to extend amortization, purchasing Mortgage Backed Securities to the tune of $60B/year, publicly promising totally unrealistic solutions (ex: 3.4M units by 2030), publicly counting for mortgage rates going down as a solution to the problem (they created), extending RRSP limit for first-time buyers to 60K (adding more fuel to the fire), just to name a few
2) So many ppl have made so much money, and any real estate blip has been very short-lived. People are psyched into easy money and "you-cant-lose" bets, backed by irrational policies by fed gov (add another one to the above list: accepting 1.2M newcomers into the country in which most of people living there can NOT afford to buy a place)
3) the hype (by everyone, from policy makers, pandits on TVs) that the prices are going to go thru the roof (again!) as soon as the interests rates go down.
4) real estate is a bubble that everyone is deeply involved in and everybody has to continue participating in the scheme, otherwise, we are all screwed. Why? It is our economy. Real estate and construction alone make 20% of our GDP.
Crazy times, indeed.
That's because when it doesn't make sense, it's "nonsense". And, when it sounds stupid, it is.
Foreign investors from a certain country do not comprehend or are plainly ignorant of the historical long term value of Canadian residential real estate. They will overbid and they want to buy everything. Commercial properties, fast food franchisees, gas stations. And that's fine we need investment but it comes down to numbers. There are billions of them and millions of us, there are far more well-off millionaires overseas who en-mass have chosen Canada to move to and/or park their money. I can only imagine it's because we have generous loopholes to exploit. Our government has done nothing to protect Canadians' interest across the board and we have opened the floodgates to a singular country of origin demographic shift we have never seen in our history. It not the only reason our real estate market is outrageous but it's a big factor, in my opinion the biggest. It's not a good time to be Canadian.
Such nonsense; still on about "foreign buyers"? Here's some News, Canadians did this to themselves.
It's actually called Legal money laundering aka Canada, it's also called snow washing(look that up)
@@jeffreyl2598 Who says? Sam Cooper?
I sold out....but l did say to friends be happy in your million dollar home....but don't call a plumber... electrician... don't complain about taxes and don't call me when interest rates go up and you feel desperate
Renewal defaults are going to happen
What’s a renewal default?
@@davidhughes6048 people who got 5 year locked near 0% prime rate in 2020 are in for a surprise
they already are....
@@AG-hl1ni yeah they never thought interest rates were ever going to go up before they bought into a 5 year fixed near 0%
I experienced this. Just sold a 1 bdrm in liberty village for 1000/sq ft in 3 weeks, comparable price to many units in the building.
Just before this someone purchased a studio in the same building for $1100 per sq ft after being listed for nearly 2 months. Absolutely no comparable exists to justify the price.
I can’t understand for the life of me.
Yeah buddy huge price correction coming up
That’s great for investors!
@@f87so is the capital gains tax 😂
Hi As per CHMC income verified from CRA going to implement from October 1 . What will happen after that property price
How does that work?
@@emeraldcastle can't just use your own accounting to get a loan from the bank.
If your income matches what has been reported to CRA.
Aka my ponzi scheme of businesses owning businesses with fraudulent income wouldn't count for attaining a mortgage...
If the businesses are legit and making money why not just use your own income... Oh wouldn't make "business" sense now would it...
If the market is correct and there is no rate cut in June the pressure will be immense for the sellers to just sell their properties at the best price they can get. The market is predicting a 58% chance of no cut.
Don’t be shocked if rate hikes come in the US
That will put the BoC in a very tough spot
Let's face it, some buyers have no idea of what they are doing, especially if they are new to the country and not aware that everything is published bow in Canada. Some listen too much to the bad advice of their realtor who just want to get the commission at the expense of tgeir clients sometimes.
Average selling price can trend up as volumes fall, if its the cheaper homes that are not selling. That can only last for a while though, until the inventory overwhelms the demand and sellers have to bite the bullet.
There is no price when you want something. We are at the tipping point and I’m really curious about how it’s gonna work.
The houses value didn’t change a house still house but it’s the money that losing value as long the fed keeps printing and so Central banks prices will continue rising. If you have cash get rid off it asap by buying hard assets( gold, silver, property, house) or this cash will be worthless in few years.
What you are explaining is exactly what we are going through !
Is that happening for all properties? Or just a select few? You make it sound like everything is selling at list, is that correct?
Latest data in US suggest interest rates can now likely be reduced v soon. Canada Fed will be relieved becuz they are desperate to cut rates as its economy in a much more fragile state. With record low volume house sales numbers, the upcoming reduction in interest rates, with more cuts expected, will bring about at least some increase in buyers. IF the low volume sales have kept prices at these levels then logic suggests any increase in sales numbers will almost certainty edge prices up.
Be wary of agents motives, they make money when there are lots of transactions and they don't care if prices are high or low so long as they transact. This intro sounds like he is miffed at sellers not dropping prices to match his buyers expectations, but in the example he quoted the seller was proved right, no? If the agent was working for this seller presumably he would have told him to drop his price before it was sold? Would that have been good for the seller? Maybe for the agent? Its not a huge criticism of Santo, even good people like him have unconscious bias that develops, and these vids and the data are excellent, but it's just worth buyers / sellers taking the good advice that good agents like Santo give, but not to give up thinking for themselves along with it.
Canada doesn’t have a housing crisis. Only desirable areas like Vancouver and Toronto are expensive. Canada is full of affordable cities that people have overlooked.
Winnipeg is still very affordable compared to Vancouver. You can still buy a brand new 3 bedroom 2 bathroom townhome for under 500k. Leaves you plenty of money for a nice SUV for the cold winters.
addicted to the DRAMA
YA you are correct , "SOMETHING VERY DRASTIC IS ABOUT TO HAPPEN " LIKE I ALREADY TOLD YOU ! BE PREPARED , IT'S COMING NOW !
lol ! I am waiting
@@bodhisattva6308 SOLAR ECLIPSE AND THE CONSTANT SOLAR FLARES , DOES IT RING A BELL !
@@marctrottier8232 if you know something and what to predict, just say it straight out what your prediction is. No point playinf a guessing game I say.
Yea,,,, all industries and businesses will shut down, no-one will be working, and the sun will rise from the West.
Toronto Vancouver house prices ll go down %85 imminent
man those 2+million skew that data heavy with this low of sales
Exactly. Smaller datasets skew stats
It's the ground shaking just before the earthquake.
It doesnt make sense as Canadian RE market makes zero sense. The price is not matching to average income out there. There are people with lots of money that still buy what they want, so the price is still up there but they will also disappear the longer this high interest stays.
Canadian Gov told banks to let interest accumulate on underwater mortgages like minimum payment on a credit card
It’s been this way for 2 years. We all know nothing can go wrong with accumulating debt. The US did it in 2006/07 and everything stayed rosy after that
Up until the late 80s, three months was the norm for a property to be sold.
I think it is different now because the bank is unwilling now to force the house owner to sell. As the owner is paying the mortgage, the bank is bending over backwards to keep the owner in the house rather than taking over the house. Negative mortgage and many other things.
Brampton is the capital of Canindia
Correction… writing on the wall !
Better question, when was the last time fundamentals mattered
Santo I'm active in market, GTA market has psychological issue, everybody has the hope(seller) and fear(buyer) that interests will go down soon and prices will be exploded right after so all saying oh let's buy buy before they go up and sellers don't bodge as their prices will go up soon(dream). The reality will be coming to them soon
Print your comment, and tape it on your fridge. Then have a look at it every year going forward. And then rate yourself on your level of accuracy.
IF rates come down, house prices will go up. Everyone understands that increased demand will motivate sellers, (and more importantly brokers), to demand more. And IF rates go up, banks will do anything (reasonable), to help those that struggle with their mortgage, because banks do not want to deal with defaults. In the short term, house prices may fluctuate roughly plus or minus 5%. However, those interested to buy, (and now holding back ) and expecting a material/sizeable drop in prices, will be disappointed.
@@olgapredger5488 You are correct, but only in the case of considering "Historic data points". The entire platform today, presents conditions that did not exist in the past, therefore historic data points are irrelevant. With over 2 million newcomers coming to Canada every year and limited/controlled availability of new housing caused by government policies, the gap between supply and demand will continue for many years to come. The current affordability issue, will at best slow down sales, but as current charts show, there is minimum influence on prices.
hanging on by threads...people are addicted to the pain and do not want to get off the roller coaster...they want the bidding, they want more and more debt..it is out of control you are right..opposing..they say they want it to stop...but they keep it going
Problem is there are a lot of Canadians that have no equity in a home that they need to repair and maintain. So it is slowly eroding their money away.
If one buys a home TO LIVE IN, who cares about the equity really.
Equity is coming from a pure greed.
@@Nemija exactly right
There's only one place to get listing history on your phone.
pent up demand bouncing up against the very limits of affordability... how many folks are buying houses using the absolute maximum approved financing??
When inflation is higher for longer, money is losing more and more value.
You can have home prices rise during a bad recession when money loses value fast enough
Also Canadian wages are rising at 5% per year
This is normal for a changing market! Things are heading down in the next few months!
It’s a stale mate. Sellers don’t want to take a loss, and lower prices. They are hoping off
10% mortgage rates around Q4 2025! Make no mistake.
lol. Please show your work.
Its possible if usa has a bond collapse and the world sees that issue as sovereign defaults happens when isa and china decouple.
Gold silver and hard assets will outperform in this type of economy
Another renter not that there is anything wrong with that.
The only thing wrong is the comment.
100% agree
Historical data models have been up ended post pandemic due to large govt spending, massive immigration surge. Similiar cost of housing " crisis" being seen in EU, US, Aus, S Korea... etc but Canada among worst....
Years down the road. Canada real estate market will be a fruitful field for research. Psychological bias everywhere. People is attached with housing.. they only speak about housing. Let’s see what will happen. I have no clue.
Seller got stuck in a mud of debt
Suppose someone bought a house for 1.2 million but now no one buy that house for 1 million. Even if someone buys it for 1 million seller will lose 200k now sellers today market are minimum wage workers who cheated or did fraud with mortgage lol
For them 200k a lot of money and they can’t think of losing it. For some people it’s their lifetime saving.
Just year one of four if not worse amigo
Everyone knows that there are 1 million new immigrants flowing into the country every year, but only 200,000 houses being constructed each year. They know that with metrics like that home prices will double each year as long as immigration stays that high.
Not any more. Immigration restricted to 300k
Man Santos weird things all the time dont go by the exceptions.
I was one of those buyers. I wanted THAT house. It was what I wanted to pay for A house and I'm not planning to ever sell it.
I'm a 44 year old first time buyer that waited for max prices on the way down at and at max interest rates before I made a decision to buy.
Is what it is 😊
Wait till rates drop a bit.. The fomo meter will start heating up. 🌡
Prices have been fairly flat for over a year now. Or slightly up 20-30k only.. Rate cuts would give it a spike.
If fomo kicks in Tiff will swat it back down with a hike or three
@@Jo-mf2vu Tiff will react too late and prices will go up 50-100k by end of 2025. He won't touch rates bc real-estate is going up. Hense why gta has doubled in price every 10 yrs for the last 40 yrs.. so it may take more than 10 to double again but it will at some point
@@baseline6786Prices dont always double every ten years. In the nineties they actually lost value after ten years. Im expecting a similar scenario for the 2020s. The age of ultra low interest rates is done. It's not a Canada thing it's a world thing and not much we can do about it.
@@Jo-mf2vu too much immigration and lack of building new supply won't allow it. A 3.5-4% rate will feel like 2.5% with the amount of demand that will be coming back into the market.
If immigration was low than your scenario would play out.
@@baseline6786immigration spike is coming mainly from temporary residents (students etc.) putting demand on rentals which then causes demands on non-rentals. But immigration Minister squashed that and many will be now leaving due to lack of incentive (can't bring over spouse, can't work here after). Also with 2yr partial immigration pause coinciding with 50% of mortgages renewing I would not be so cheery.
😂what are to our talking about ?? Is there anything called market funda MENTAL😂.. post covid it's only mental madness no funda
💯
Investors maybe going Dubai now
Makes no sense. I bet Jerome Powell felt the same as you about the economy and the market 😅
Head and shoulders pattern. This may be the double top. Prices down shortly
Canadian real estate is cheap. What do you expect? Globally, it’s cheap…
Realtor make cash payments in lue of higher bid price..this is my personal experience..realtor call e..saying bid for $1m and I will give u 100k in cash...such are the practices in this market..
I’ve never experienced that. I could see it happening in private sales, but seems unlikely when you don’t know the other party.