A Bubble is when there is so much inventory available that No One, No Body, Any one - any longer wants to buy anything and the remaining inventory then needs to slash pricing to sell.
I am not in other cities I am in Toronto. Is a 300K unit affordable for a single person in DT Toronto? UMM Yes. yeah at $1300 pm purchase vs the rental of $1500. If there were so many for sale..... Then the owner's would rent them. If there were so many available..... then the rental price would decrease to meet the available rental pool.
To the [individual] who wrote there are 17,000 units are pending closing in 2010. (Possibly I am not aware how this number was sourced). Yeah! All with 20 % prepaid down payments, All Purchased in 2007, 2008 pricing, with committed financing and people living in them. (either as a rental or as end users) Occupancy dates are 4 - 6 months prior to the Registration of a Condominium Corporation (building).
In 2008 the Toronto Real Estate Board reported 94,000 sales for the entire year. Given that the condo market is almost 40% of all units sold under the $500 K mark, 17,000 units in a given year is not an impossible number to justify in a city (GTA) of almost 4.5 Million people.
The economy and real estate held their collective breath for a potential correction Nov '08 to March '09 and we decided, that we as Canadians, are ok.
People who make blanket statements like this have a woeful misconception of the buying a condo unit process from a builder. Cranes on Site mean the buildings are SOLD. Permit costs have been paid based on the total number of units proposed and Lot Levies committed and assessed.
There is currently an inventory shortage and there are people lined up, coming to large urban centers in Canada. Why? Employment. We have continued immigration for jobs and education. We need more immigration in Canada. We want more immigration and scholars. Canada's banking system was lauded as a sample for the world at the G7 summit. Single women are now a market force buying on their own. Canada is a safe haven for investment dollars. To those that are always yelling the loudest about 5% buyers ending all the loans Canada, You really need to read this; Average Canadians are 1/3 mortgage free and that the average mortgage is at 50% of the property value. Pick one you like.
Everyone has their own opinion and you are all right.
Buyers Market? Seller Market? Balanced Market? Where are we?
If you call or email we can discuss absorption rates (How quickly a price range or type of home/condo is being bought up) We can look at Historic Listing Inventory for the last 18 months. OR the best? READ a copy of the Market Watch Report from the Toronto Real estate Board published monthly. Lets Talk average Mortgage for Canadians.
I am not a proponent of Bubble. I am not screaming Run and Buy before prices skyrocket, I am an advocate of buy what you can afford as a hedge against inflation. You need to live somewhere.
You cannot move into your Tax Free Savings Account!
You decide. but get informed intelligent answers to your questions. What are your FAQ's Add them here and I will try to answer.