Waiting for the Next DIP in Toronto Real Estate Market Prices? This is What You Should Know!

Waiting for the Next DIP in Toronto Real Estate Market Prices? This is What You Should Know!
Ah yes, this timeless question that many wonder before they buy a property in the Toronto Real Estate Market (or any real estate market). Simply put, there are 2 schools of thought for this topic - you either wait for the next dip in the real estate prices or you don't wait for real estate prices to drop. It's as simple as that when you boil it down. I'll be going into the detailed thinking behind both of these schools of thought.
The key here is finding a good balance between these 2 perspectives and ensuring that what you want to do is strategically sound from a long-term perspective (i.e., at least 3-5 years out). Real estate is not a rash decision, so that's why this question is brought up a lot. So if you want to know whether you should wait for the next dip in Toronto Real Estate Market prices before you make your next move to buy a property, then make sure you watch this video. I promise you, it'll be worth it!
#TorontoRealEstate #TorontoRealEstateMarket #RealEstatePrices
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[@markdavletshin5598]

Do you expect construction costs to come down from current prices? I was planning on tearing down my old parents’ house and build a new one. Any ideas? thank you 🙏

[@PrimePropertiesTO]

I don't think so. Why would the commodities market (wood, steel etc) lower their cost of goods sold when it clearly can be sold at this premium. Unless the demand for these commodities goes down, and I don't think it will anytime soon, construction cost won't go down. Look into something called replacement call, it's very high right now and no signs of coming down.

[@markdavletshin5598]

@@PrimePropertiesTO I was rather hoping that supply chain disruptions will improve and more supply will be available. High price was supposed to be a cure for high price, but I guess not when every country is trying to outBRRR each other😭. Thank you for the info.

[@PrimePropertiesTO]

@@markdavletshin5598 You're welcome. Yea, unfortunately commodities market doesn't work that way.

[@cityguy6854]

@@PrimePropertiesTO What's "replacement call'?

[@PrimePropertiesTO]

@@cityguy6854 Apologies, typo. It's replacement cost. This is essentially what an insurance company is going to pay you to replace your property if something happens to it. Ie, fire. Replacement cost (usually an estimate by the insurance companies) have increased dramatically because the cost to "replace" the house has increased due to commodity and labor price increase. We've had some almost double on ours.

[@Seektruth-59]

No dip coming, sorry. There won’t be inventory and whatever dip there is, if you thought 20 multiple bids were bad, wait to see how you feel about 50 multiple bids. Good luck for those who have waited since 2010 and priced themselves out back then.

[@tudvalstone]

People sold and waited for a crash. I have a lady on my street who did that when she inherited the parents house, now she's renting in the neighborhood and checking prices for everything that sells. Must be tough to see prices more than doubling after you sold.

[@wiseguy6687]

@@tudvalstone yup lol, these prices are gonna keep going up..... never too late to jump in. The train ain’t gonna stop, just hop on.

[@Seektruth-59]

@@wiseguy6687 yes, and I can’t believe these folks think that waiting for a crash is sound advice.

[@wiseguy6687]

@@Seektruth-59 totally agree, with record number of immigrants and low supply with high demand how can anyone expect prices to crash.....

[@imtoogoodforchu]

Which do you think will increase more drastically in the next 5 years: rent, or home prices in Toronto? To me, it seems rent in most Toronto areas is not high enough relative to property prices, particularly the downtown condo space. In my opinion, unless property prices decline, we need to (and probably will) see an increase in rent that outpaces home prices to support the overall valuations on a macro level.

[@PrimePropertiesTO]

Rents at indicative of house prices unless its an investor driven market like condos. However, with QE, more and more investors are willing to take negative carry. I think prices will outpace rent in 5 years. We'll see a surge in small condo rentals in the next 2 years, but in 5 years prices can be crazy with all the QE.

[@Invested.Entrepreneur]

Well said! Unless you’re planning on doing a quick flip there’s no sense in holding back if you need a home.

[@PrimePropertiesTO]

Agreed

[@tommywong3147]

My uber driver told me today to buy now or u can never afford anything.... Um

[@PrimePropertiesTO]

Sounds like great advice from your uber driver lol 😜

[@baseline6786]

Where will prices be in 2025. About 1.6m avg price.

[@PrimePropertiesTO]

That seems a bit intense don't you think? lol. 60% in 4 years?

[@tudvalstone]

You touch on point that is never discussed, as if it's some kind of taboo. If rates go up when your mortgage comes up for renewal, you can always refinance, as your income will also be higher and you'll have build up more equity. These so called financial analysts you see on TV are so detached from reality. But 'moving laterally' is not that easy in a hot market (+ it's costly in 416). For me, it worked better to stretch a little and buy my forever home the first time. Yeah, I was 'house poor' for a few years, but I saved so much longer term.

[@PrimePropertiesTO]

thx👍 The difficulty of the lateral move depends on what you want and how much equity, but it'll 100% easier than trying to chase the market. Congrats on your forever home!

[@arsalanmuhammad9704]

Buy gold and silver. Exchange fiat for real money

[@PrimePropertiesTO]

Or BTC 😜

[@MrTC-rv3jo]

Nice analysis bro. Luckly I bought in May 2020... $$$$ 🙂

[@PrimePropertiesTO]

Thx, 🚀🚀🚀

[@ZulfiqarAli-rf6fp]

I fell in love with u because of ur knowledge and dedication to ur business

[@jojay6472]

Everyone looks like a genius in a bull market

[@PrimePropertiesTO]

Thx

[@alana.dyer.author]

Im saving to buy somewhere in the GTA between Brampton, Toronto and Caledon. So i will keep saving till i am ready to buy lol

[@PrimePropertiesTO]

Good luck, and god speed!

[@kudz247]

It may be also wise to start small before the market prices you out.

[@PrimePropertiesTO]

@@kudz247 Good solid advice.

[@Seektruth-59]

What dip, this is not a stock market. And stop talking about prices in nominal terms, let’s get some stats on real inflation adjusted prices. Oh, no that would just dismantle this whole idea all the crash proponents are trying to spread. Ok how about we just admit that the Greenbelt was a conscious decision by politicians to raise the prices of their homes knowing full well that was going to happen in 5-10 years when construction land becomes restricted and supply runs it’s effective course.

[@jonnypolo8057]

Its happening now but I think you will see more people leaving Toronto.

[@PrimePropertiesTO]

We'll see. I think the migration will revert in the next 2 years.

[@tudvalstone]

People have been leaving Toronto for decades. Many more have been moving in. No place is best for everybody.

[@jonnypolo8057]

@@tudvalstone I disagree people are not leaving Toronto you have an influx coming in. But you will see it happening now.

[@tudvalstone]

@@jonnypolo8057 I know older people who have been moving out while twice as many young people want to come in, even if it means sleeping in a tent for a while. You don't appreciate how boring life in small city Canada or even in the suburbs really is until you live a couple of years in both places. I think even the older people will come to regret their decision (made mostly on financial considerations) as they begin to feel more isolated.

[@jonnypolo8057]

@@tudvalstone to be honest I’m starting to think the older people people are making the right decisions. We’ll see if I’m right.

[@cityguy6854]

Common sense. Tons of it. Thank you!

[@PrimePropertiesTO]

Youre welcome

[@KillScreenCS2]

Buy bitcoin.

[@fergursonwatt1309]

People will definitely be kicking themselves in regret for missing the opportunity to buy and invest in cryptocurrency.

[@stellakristen9871]

Investing in cryptocurrency is the best chance of making money now

[@ivymike9622]

Crypto is the new gold .

[@andrebohanon8798]

I wanted to trade Crypto but got confused by the fluctuations in price

[@user-yj9vn7ym6m]

He's obviously the best i invested 2000USD with him and I made a profit of 9101USD.

[@tommacdonald8968]

@Laura Scott How do I contact Mr George Anderson?.

[@armaan3029]

Looks to scripted and is should be more real dude we can see your eyes looking at the board behind the camera telling you what to say

[@notoriousman7]

Good video. Keep it up!

[@PrimePropertiesTO]

Thx

[@yenstravels]

10% tax on luxury vehicles, just one of the new tax category to be implemented among the many other new taxes proposed by the government 😳

[@Slickpete83]

*don't worry Yen , I was thinking about the +$100K luxury car tax of 10% in the budget , what's gonna end up happening example 2021 Porsche 718 Cayman GT4 MSRP $ 116,000 , so dealership will just sell the car for $99K + $17K accessory package to avoid the tax which would be extra $11600 for the buyer lol...* *or what happens to that tax if you lease that $116K Porsche , seems many loop holes possible if your smart & have money*

[@PrimePropertiesTO]

@@Slickpete83 lol.... have nots vs have yachts?😜 maybe porsches will adjust all their base model to 99k lol