Home prices new and resale will continue to fall in prices until the average wage can afford the average home price which is in some cases 50% and more of a price drop. The housing crash is here and many people are defaulting on their mortgagae in great numbers. Don`t believe the liar RE agents who are starving for sales.
As for defaults, the Canadian Bankers association, the number of mortgages in arrears (i.e more than 3 months behind on their payments) is still at historical normal levels.
I thought switching from renting. Considering latest development on the GTA market I'm not doing it anytime soon.
Anybody with a piece of paper, a pen and 5 minutes of spare time can figure out that buying now is a financial suicide. Unfortunately false affordability numbers caused by artificially low interest rates lure people without pens and paper into lifelong mortgage servitude.
You might want to re-consider this. Mortgage rates are at historic lows, if you have an open mortgage you can pay more principle than interest than you ever could and again…the affordability is at what it is historically.
In addition, as a investment real estate has blown apart other investments if done correctly...simply because of leverage.
DON'T BUY NOW! WAIT TILL THEY DROP BELOW 200 GRAND!
Every measurable fundamental (inflation, average income etc) has pushed real estate well above $200,000. Land prices, construction costs have pegged the cost to build an average condo semi-detached home in Edmonton to be well over $200,000. I'm not sure what the base of this statement is.
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