Toronto’s housing market has cooled. Should you celebrate, or be scared?

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History tells us GTA real estate downturns tend to be short-lived — but they don’t hit everyone equally, experts say.

In 2007, Toronto renter Jeremy Martin was working in a mailroom and checking out the east end of Toronto as a place to put down roots. Back then there was a three-bedroom house for sale for about $250,000. He figures he probably could have stretched and bought the place. But he didn’t.

It’s what many exhausted and priced-out home-hunters have been quietly hoping would happen. No one wants to see families underwater, with mortgages valued at more than their homes. But for those who’ve been shut out of the market, there’s some simmering animosity toward the speculators, flippers and investors who’ve gotten rich while ordinary families languish on the sidelines.

Although he expects prices will drop later this year on an annual basis, it’s likely that with the first part of 2022 being so hot, this year’s average selling price will still come out higher than last year’s. After watching another house in his area go for about $1 million last September, and then be relisted for $1.25 million two months later, Martin admits to feeling “a little old-fashioned spite.”

Before that, there had been a market correction in early 2017, in response to the Ontario Liberal government’s Fair Housing Plan that included a foreign buyers tax.

“It was really awful,” said Cyleste Collins, an associate professor at Cleveland State University who researched the human toll of the mass foreclosures. “It represented, for the people that we interviewed, who they were in the world and what they could offer their families — safety, stability, something that they could put a stamp on.”

In the GTA, periods of stagnant or falling home prices tend to last for months, said Soper. In the U.S., in 2008, months of distress turned into years, resulting in what he says was “an actual reset” of housing values.

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Let me guess. Women and people of color are the ones most affected. Wash.Rinse.Repeat.

Money laundering.

Canadians spend all their income on housing and taxes. Utopia.

We’re about to have a housing market crash and you post this? Interest rates aren’t even close to to topping out yet and prices are already down by a good amount. By 2024 there’s a good chance we’re in a recession and lots of homes get foreclosed on.

Great insightful piece. Tough to continue to bear witness to how challenging this time is for so many. Renting or owning a home should not be so challenging/unaffordable/all-consuming & cause so much angst

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