Sunday, December 8, 2019
Toronto housing - money continues to flee the market
You can get a rough idea of the money flowing in the market by multiplying sales by price. If you do a chart then the peak was in 2016, and then money went for a hike. The cheery media is limited to saying the price went up a tad (for this month), but the market is too thin to tout that much.
If you look at the longer charts, then we've never had such a 'zombie market' with things so flat. It either goes up or down. (I'm digging into my memory for this, there are no long charts). A zombie market means that someone is keeping the flesh from falling off. We'll call out the banks for that, who are aren't foreclosing. They are just firing all their staff.
In our neighbourhood, we have abandoned monster house builds. A nice house just sold for $826K, when it would have sold for well over a million at peak. So, houses are at 30% and condos are being propped up by banks who don't want to put out the obvious signals. I am amazed. Can the zombies march for another year?
ps. and for something completely different, we had the Christmas dance recital where my daughter teaches.