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Home affordability index declines
RBC Survey say homes in Toronto are now more affordable.
Affordability rates remain worse than average in Toronto, where a two-storey home declined 0.7 percentage points to 55.7 per cent of income. That means it takes more than half of pre-tax household income to carry a mortgage, property taxes and utilities. It had improved 8.6 percentage points in the past year and is now close to its historic average of 53.6 per cent.
The price of a standard two-storey home in Toronto fell 2 per cent in the second quarter of 2009 to $509,300, the RBC report says.
See the full story in the Toronto Star »
September 10, 2009 in Toronto Real Estate Trends | Permalink
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Posted by: Luis Mathews | Oct 14, 2009 1:25:45 AM
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Posted by: Attorney Smith | Sep 19, 2009 1:27:20 AM
I think his post today is an admittance he was wrong though, but yeah he does justify himself. Different times for sure. It's not easy to just go out and indebt yourself though just because there's safety in today's stupidity. Things of this nature just can't last forever so the prudent will still come out ahead. And yup, I had considered dumping my properties as well but did my own due diligence and it made sense cashflow-wish to keep them. He is not talking about everyone when he says to dump and rent, he's talking about the ones who actually should dump them! lol. Some people have no clue, and he's given them one or at least made them think about it. Everyone needs to think for themselves...you can't really blame anyone for your choices and mistakes. I really don't see the US "rebounding"...more like a new normal, a lower standard of living is coming our way and it's going to be more modest. Might as well adapt now and wait for others to catch up. Those out of debt will seem rich by comparison for example. Debt is normal, rich is being at par!
Posted by: Trevor | Sep 16, 2009 9:55:41 AM
So Trevor, don't read Greater Fool then? Just kidding. I find GT quite amusing, even when he admits he's wrong, he doesn't really admit it.
I think my biggest issue is that he advised a lot of people to sell their homes last summer, and rent, and that decision has probably cost them tens of thousands of dollars as well as uprooting their lives, and he was wrong and so confident. Robert Shiller and the others (who have more than B.A. degree behind them) certainly don't come across as merchants of fear that he does - I don't see Shiller shilling generators out of the back of his shed, for instance. So anyone reading here, take GT with a silo of salt is my opinion. As for an eventual decline, I agree that it seems likely. Although if the US pulls out of its downspin, and the dow ends the year over 10,000, things just might be looking up.
Posted by: Geoff | Sep 16, 2009 9:22:44 AM
And to answer your question...if inventories climb we'll see a depressed market in the next 3 months. When it gets cold, markets die and the market has to be running out of buyers at some point. Sooner than later, but very possibly even past the next 3 months. It's really hard to pinpoint what the precipitating factor is going to be. What will break the camel's back???
Posted by: Trevor | Sep 16, 2009 8:51:42 AM
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