They are actually 3 times too high based on Toronto mean incomes. Prices did actually fall by as much as 2/3 in the 90s meltdown. People said it couldn't happen then, as they are saying now.
1. Historically, recessions occur after interest rates have started to come down. 2. There are a bunch of locked in mortgages from 2020/2021 that will be coming up for renewal in 2025/26 3. There are a bunch of new construction buildings that will be coming up to completion in 2025. 4. More and more listings will pop up as interest rates fall due to sellers thinking that buyers will flood the market. Right now is not the time to buy.
I prefer your reasoning over Pumper Tom’s. If you don’t *have* to buy a place, waiting sounds like a waaay better choice. Take that 8-10% money market return over the next couple of years and put a bigger deposit down on a cheaper property at lower rates. I wouldn’t wait too long though, because I do agree that there *may* be a longer term shortage of units as developments stall. This has yet to be seen however.
If Toronto strives to be a top tier world city and an international finance and economic center, a good place for real estate to be is 16x the average income. I don’t know what your income is, but we are not at 16x.
I think this video will do better than the other one because it's a Contrarian viewpoint and people love to argue on the internet. "No you're wrong! This is what I think..." More argument, more comments, more views.
Assuming one has a salary that is $200,000 (top 2% of Canada) with a net pay per month of $10,000 and want to buy a 1.5 million dollars house with $300,000 down payment then the monthly mortgage + property tax payment would be $7000 + $1000...with only $2000 remaining to pay for food, clothing, insurance, car expenses and others. This is to show you that even the top 2% of Canadians have difficulty buying a house in the current market.
If you have been sitting on the sidelines, why would you buy now when sales have fallen off a cliff, inventories are skyrocketing, and prices are at the edge of the cliff?
One agent that finally gets it and knows what automatically comes with rate decreases. Buyers trying so hard to wait will be rudely awoken back into FOMO into 2025-26
The people who has missed out are always saying the people who locked in rates are going to die when it is time to renew. Well, sorry to break it to you guys but Toronto landlords are the least leveraged in the world. Real estate prices has not come down the way the jealous people want, and now the rates are falling.
Have you ever seen mass buying when prices are going down / slow market? Buyers will stay on the sideline until prices start going up! I think sometime next year market direction will change
I agree, 5 years ago everyone also said the market will crash and house prices appreciated 30-40%. It's not doom and gloom, nor is it the fact that prices will sky rocket. The truth is somewhere in between.
I just bought for $90k under asking. But I still think I paid over market value. Sellers weren't happy, yet they banked $200k from the 2017 purchase. End users should buy now (and offer a little over 2019 pricing). Investors turn to stocks and give people who need homes a fighting chance.
Though houses cost too much, is there any reason the prices are going to decrease "THAT" much? The price of building a home is not going down, as inflation will be with us due to the government printing of money. Now is buying a good investment....not sure. But to think houses will comes down a whole lot...I kinda doubt it. Just too few being built.
Yes, best time to buy was yesterday! I was thinking the same thing. 2030, everyone watching this will be kicking themselves and regret not buying. Tom I was thinking how stupid I was to buy a detached house in Pickering in 2017 at the peak. I struggled a lot for the first five years as I was leaving a townhouse that I bought in 2015 for $360,000. BUT GUESS WHAT? There’s no such thing as a detached house for $775,000!! I won! I’m still winning!! Let’s go Tom! 🙌🏾
I bought and upgraded in 2016 with much anxiety. Never in my wildest dreams would I have predicted the price gains that had happened even with the recent price declines. My son bought a townhouse this year with a crappy interest rate but long term he will be happy with his decision. #timetobuy!!
It’s hilarious, people are fools, just like when they bought on FOMO, buy now, renew in 1-2 years with a much lower price than what you would have ended up with by waiting
Tom, I follow all of the top real estate channels in Canada and was getting so bored with pretty much the same content day after day and now I just preview every video to get the jist and move on because I feel like I know what they're going to say. I only watched 30 seconds of this video before writing this....this is a genius-level idea! Even though I'm still pretty sure I know most of what you're going to cover in both videos I'm going to watch both to end. Thumbs up on both mate before I even watch, you found a way to set yourself apart and get my full attention, what a nice surprise, way to go. Keep it up and your channel should blow up. I'll go out of my way to help, something I'm rarely motivated to do. I'm really pleasantly surprised, I almost never leave comments but you forced one out of me. I hope you read this and it motivates you to keep raising the bar and if you ever want feedback from a subscriber who's been absorbing content from MANY Canadian real estate channels and watching the RE market for the past 2 years, hit me up. I'm an American living in Singapore with a child attending UBC and we're going to buy a condo in Vancouver as soon as the prices bottom out, hopefully this year or early next.
Really appreciate you taking the time to comment. I’ve had this idea for a while but wasn’t sure if it would work. Any feedback good or bad would be helpful as I’m always trying to improve the channel.
Ok, just finished the video and could not believe that you actually covered our exact situation. We're going to buy in Van because our son is doing exactly what you said; first year dorm, second year apt with friends, and we're trying to get them into a condo for the remainder because we have another child applying to UBC next year and they will hopefully follow the same path. Not one of the many RE channels in my feed has ever covered that scenario. I'm honestly just stunned at this point.....how the hell did this even happen?
Go watch the “reasons not to buy” video next ruclips.net/video/xyK9BD8eMTY/видео.htmlsi=7_Yxw3bQMl4kbdZY
Doing Bullish and Bearish videos is quite creative I must say! Great idea Tom 👍
🤑🤑🤑
Prices still 30% too high my man.
They are actually 3 times too high based on Toronto mean incomes. Prices did actually fall by as much as 2/3 in the 90s meltdown. People said it couldn't happen then, as they are saying now.
50%
1. Historically, recessions occur after interest rates have started to come down.
2. There are a bunch of locked in mortgages from 2020/2021 that will be coming up for renewal in 2025/26
3. There are a bunch of new construction buildings that will be coming up to completion in 2025.
4. More and more listings will pop up as interest rates fall due to sellers thinking that buyers will flood the market.
Right now is not the time to buy.
Agreed
Great! you are on my list of tenant applicants.
I prefer your reasoning over Pumper Tom’s. If you don’t *have* to buy a place, waiting sounds like a waaay better choice. Take that 8-10% money market return over the next couple of years and put a bigger deposit down on a cheaper property at lower rates. I wouldn’t wait too long though, because I do agree that there *may* be a longer term shortage of units as developments stall. This has yet to be seen however.
@@benny871look at you with the property empire!
Agree
Will see Tom will see !! When i both my house in 2014 it was 3x my salary , right now its 10x my salary !! Something went wrong in 10 years
Yup. Low interest rates and population growth + a ton of investors.
If Toronto strives to be a top tier world city and an international finance and economic center, a good place for real estate to be is 16x the average income. I don’t know what your income is, but we are not at 16x.
Trudeau.
I think this video will do better than the other one because it's a Contrarian viewpoint and people love to argue on the internet.
"No you're wrong! This is what I think..."
More argument, more comments, more views.
The time to buy is never, renting makes better sense in Toronto. The game is rigged
Short term I agree.
Assuming one has a salary that is $200,000 (top 2% of Canada) with a net pay per month of $10,000 and want to buy a 1.5 million dollars house with $300,000 down payment then the monthly mortgage + property tax payment would be $7000 + $1000...with only $2000 remaining to pay for food, clothing, insurance, car expenses and others. This is to show you that even the top 2% of Canadians have difficulty buying a house in the current market.
@@TomStoreybut your title says “The time to buy is NOW”. Can you explain this apparent contradiction for us simpletons? 🤔
@@davidhughes6048 I would suggest watching both videos and not commenting on the title.
@@TomStorey Long term, does the leverage make sense? In your view, would real estate grow more than index funds?
Prices are still way too high. The developers would be building spec if they agreed with this premise.
If you have been sitting on the sidelines, why would you buy now when sales have fallen off a cliff, inventories are skyrocketing, and prices are at the edge of the cliff?
Because nobody can successfully time the market.
One agent that finally gets it and knows what automatically comes with rate decreases. Buyers trying so hard to wait will be rudely awoken back into FOMO into 2025-26
The people who has missed out are always saying the people who locked in rates are going to die when it is time to renew. Well, sorry to break it to you guys but Toronto landlords are the least leveraged in the world. Real estate prices has not come down the way the jealous people want, and now the rates are falling.
Sorry to break it to you, you live in banana republic. And you are a big banana.
No the prices not make sense !! Unless the interest rate reach 1.5 as it was or No the prices is too high it’s a scam
Good insights .I agree with you 200%.
Have you ever seen mass buying when prices are going down / slow market? Buyers will stay on the sideline until prices start going up!
I think sometime next year market direction will change
I would wait until summer of next year. It will drop cause the prices are too inflated. Everyone knows that
I agree, 5 years ago everyone also said the market will crash and house prices appreciated 30-40%. It's not doom and gloom, nor is it the fact that prices will sky rocket. The truth is somewhere in between.
I just bought for $90k under asking. But I still think I paid over market value. Sellers weren't happy, yet they banked $200k from the 2017 purchase.
End users should buy now (and offer a little over 2019 pricing). Investors turn to stocks and give people who need homes a fighting chance.
Though houses cost too much, is there any reason the prices are going to decrease "THAT" much? The price of building a home is not going down, as inflation will be with us due to the government printing of money. Now is buying a good investment....not sure. But to think houses will comes down a whole lot...I kinda doubt it. Just too few being built.
What the heck, Tom!
Two contradicting titled videos released same day…
Wanted to discuss both sides and thought two videos would be a fun way to do it.
@@TomStorey Sittin' on that fence.
Yes, best time to buy was yesterday! I was thinking the same thing. 2030, everyone watching this will be kicking themselves and regret not buying. Tom I was thinking how stupid I was to buy a detached house in Pickering in 2017 at the peak. I struggled a lot for the first five years as I was leaving a townhouse that I bought in 2015 for $360,000. BUT GUESS WHAT? There’s no such thing as a detached house for $775,000!! I won! I’m still winning!! Let’s go Tom! 🙌🏾
I bought and upgraded in 2016 with much anxiety. Never in my wildest dreams would I have predicted the price gains that had happened even with the recent price declines. My son bought a townhouse this year with a crappy interest rate but long term he will be happy with his decision. #timetobuy!!
@@RC-fh2lk🎉🎉🎉😅😅😊😊
You forgot house pricing is not a straight line. It has cycles
I will go with your other video 😅
It’s hilarious, people are fools, just like when they bought on FOMO, buy now, renew in 1-2 years with a much lower price than what you would have ended up with by waiting
I saw this one first
Tom, I follow all of the top real estate channels in Canada and was getting so bored with pretty much the same content day after day and now I just preview every video to get the jist and move on because I feel like I know what they're going to say. I only watched 30 seconds of this video before writing this....this is a genius-level idea! Even though I'm still pretty sure I know most of what you're going to cover in both videos I'm going to watch both to end. Thumbs up on both mate before I even watch, you found a way to set yourself apart and get my full attention, what a nice surprise, way to go. Keep it up and your channel should blow up. I'll go out of my way to help, something I'm rarely motivated to do. I'm really pleasantly surprised, I almost never leave comments but you forced one out of me. I hope you read this and it motivates you to keep raising the bar and if you ever want feedback from a subscriber who's been absorbing content from MANY Canadian real estate channels and watching the RE market for the past 2 years, hit me up. I'm an American living in Singapore with a child attending UBC and we're going to buy a condo in Vancouver as soon as the prices bottom out, hopefully this year or early next.
Really appreciate you taking the time to comment. I’ve had this idea for a while but wasn’t sure if it would work. Any feedback good or bad would be helpful as I’m always trying to improve the channel.
Ok, just finished the video and could not believe that you actually covered our exact situation. We're going to buy in Van because our son is doing exactly what you said; first year dorm, second year apt with friends, and we're trying to get them into a condo for the remainder because we have another child applying to UBC next year and they will hopefully follow the same path. Not one of the many RE channels in my feed has ever covered that scenario. I'm honestly just stunned at this point.....how the hell did this even happen?
Investors will disappear for a long time. Majority of condos for sale in Toronto are from investors who are bleeding money and over 60 % are vacant
45% of active condo listings are vacant in Toronto. Mostly because tenant(s) gave notice, they already moved into a new property or it's a new build.
🤑🤑🤑🤷♂️🤷♂️🤷♂️
As always, a great video! Keep up the good work.
You will own NOTHING PLEB.... Not real estate not gold not anything...