The coming Canadian residential market collapse...
Is it the Canadian housing market as a whole that is (seemingly) overpriced, or just certain popular locations like Vancouver? The way housing prices in say San Francisco are way higher than in Sacramento.
this is what I wonder...it makes sense though. Toronto and Vancouver have always been cities in Canada with the highest population, therefore most competition for housing.
I live in ottawa (population of 900 000) and and the prices are high but not Toronto/Vancouver high. A new 2 bedroom condo in a downtown/central hip/fancy area is 400-450K, whereas a 3 bed townhouse in the suburbs is 275-300. A rowhouse is about 200K. i think the average 3 bed house resale value is mid 300s.
Prices have dropped but nothing too alarming (yet). We bought our house in 2005 for a very good deal (but it needed a lot of work). it almost doubled by 2011, when at the time everything in our area was selling within a month. Now stuff stays on the market a little longer and has now come down about 30-40K. But, we are not talking huge numbers here.
But then I read on this forum, people buying houses in the US for investment purposes for 50K, or 25K$ for a condo. 50k here gets you a hunt camp with no hydro or septic or well in the middle of nowhere. or maybe 3/4 of a trailer in a trailer park. Houses in Ottawa in the suburbs were 38-40$k in the early/mid 1970s...
But, I am no real estate expert though, that is for sure. we just got a mortgage for our cottage and i realized how much tighter the rules are now, versus when we bought our house. max 25y amortization, much more proof of employment/proof of income needed, larger downpayment needed.