Something I am Having a Hard Time Understanding
We have had our lives and how we use to live changed drastically. So much information on Covid, who do we believe and trust with facts that hardly make up any sense at all. When covid is compared to other outbreaks, it makes you wonder?
So many people have lost their jobs, savings and, in some cases, their businesses. It makes me sad to see so many friends of mine living this nightmare. They have worked so hard to save and create a company that didn't even have a chance to make it.
I can not understand how the stock market and crypto markets can be so bullish, with returns unheard. The other aspect of this crazy equation is the Real-Estate Market value of homes in Ontario.
I have been watching this marketing, what I have noticed is very few "FOR SALE SIGNS." When I do see them, within a few days, they turn into sold signs. The scary part every one of the homes sold for an average of $140,000.00 over the asking price.
But yet so many people are without a job, so who is buying these overpriced homes. My research has to lead me to one logical reason. People living in Toronto, Ontario, are selling their homes for way more than they ever thought they would get.
The average home in Toronto now is just under a million dollars. It makes no sense at all, people have no jobs, but homes are beyond affordable prices. Markets are way out of whack.
What is your thinking with all that is going on? Will it last, or will many lose it all.
All the Best,
Joseph
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The market for real a state is big in Colorado, these small home are going for million. They don’t want the house they want the land, to build high-rises, and buildings.
Cheers,
Mathew&Deloris;
The markets seem to be correcting themselves a bit, but the growth since this time last year was unbelievable. I sure can't explain it. Cryptocurrency took off as well, but has leveled off. What this says is that the markets aren't based on anything logical, really, but on attitude. Cryptocurrency is a bit different because its not regulated. An economy based on actual goods and services is really the only thing that can be explained logically and the world doesn't have that anymore.
I agree; crypto will never make sense to me, even if I invest in it. I will never understand how fast a coin can go from .0008 of a cent to .80 in one day, sometimes within hours. Scary times for people who think it is easy to pick winners; it can also go from an excellent return to a substantial loss.
It happened just last week to my partner. I told her not to buy it ETH when it was $2,100.00 USDT nope, and she had to buy it. Oh well, as of today, it is around #1,525.00 USDT.
No, we certainly do not have a world based on services and goods; I hope it comes back one day that I understood.
I have been a Real Estate Broker for 20 years and live in a small regional market in Upstate, NY. Our market is the same in that homes stay on the market for a very limited amount of time. Some markets are stronger than others and the economy of an area can survive if it has sectors that are not impacted by Covid. Here, we are the Capital of the State and have a large Government presence and our economy has remained relatively strong.
People moving from one market to another and often move to less expensive markets from where they reside. Since it is more affordable from where they come, they bid up the prices pretty quickly. Eventually, those properties tend to normalize after a few years and those same properties come back on the market for less than what they paid.
Thank you for the reply, Alex; I fully aware and understand what you have just shared, but storage of homes for sale here in Ontario has been going on for at least eight-plus years. You want to buy a home get rid to get into a bidding war, an excellent market for sellers, not buyers.
I fully agree that it is a seller's market. I never said it wasn't.
What's happening in Ontario is not unique to Ontario.
Everything goes in waves and is cyclical. Hopefully they have learned lessons from the past and control it this time.
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I Joseph
Interesting article.
I live in South Africa. I have noticed the same thing here. Currently its a buyers market. i was consulting to the hospitality industry and my business ceased to exist when all the hotels closed.
Fact is that someone is always doing well and those people are the ones taking advantage of the opportunities in the housing market. difference here is that the house prices have dropped.
Its reasonable to deduce that people that have lost there income are selling. and they are selling cheap because dept is expensive. at the same time the repo rate is its lowest in 40 years. the reserve bank has kept dropped it in order to stimulate the economy during the pandemic.
Anyway like a say i live in South Africa so not exactly a good comparison, never the less intresting
Have a good day
Regards
Francesco