Wall Street Journal features Daniel Foch: "Housing Boom Fades World-Wide as Interest Rates Climb"

Monday Jul 18th, 2022

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Link to full article: https://www.wsj.com/articles/housing-boom-fades-world-wide-as-interest-rates-climb-11658142000  "With Canada mortgage rates at their highest level since 2009, house sales in June were down 24% from a year earlier, according to the Canadian Real Estate Association. Real-estate brokerage Realosophy said Toronto sales declined 40% in May from a year earlier and now sit at a 20-year low. The median price for a Toronto home, excluding condominiums, is... [read more]

Is the spring market dead? Sales are now following prices DOWN!

Saturday May 14th, 2022

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Canadian Real Estate Market Report Summary April 2022  The growth in house prices during March 2022 remained robust, although the rate of change has declined substantially from February. Month-over-month price gains slowed from 5.3% last month to 2.2% this month.  The apartment category is still pretty strong. Second-highest ever m-o-m change. Daniel believes this is driven by two factors - the reopening of dense urban centers and the pivot to entry-level condos that may... [read more]

Canadian Housing Can't "Crash" - but that's not the only way down

Wednesday Jul 7th, 2021

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A market "crash"​ isn't the only way down. Published on July 5, 2021 Edit article View stats Status is online Daniel Foch Real estate. 35 articles To me, a "crash" implies that prices fall so quickly that people don't have time to escape. This creates a trap in which financial stress can be spread across the entire economy. See America, 2008. In a normal year, it's very... [read more]

A $1 BILLION bet that Canadian housing will end up like Germany.

Tuesday Jun 29th, 2021

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It’s no news that Core Development recently announced they’d be purchasing $1 Billion in Canadian housing with their new fund. It was only a matter of time until this happened, as Jay Vasantharajah (@jayvasdigital) and I discussed in a podcast episode about a year ago. (Link for the curious) The industry knows about this – and therefore the majority of people in Ontario know about this, because the majority of people in Ontario are directly or indirectly employed by the... [read more]

Bidding Wars: the economic inefficiency of real estate

Wednesday Mar 3rd, 2021

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At the risk of sounding melodramatic, I honestly believe that bidding wars are among the greatest economic inefficiencies ever produced by the real estate market. In 2017, we saw a pretty wild market, with real-time price discovery being the greatest challenge of buyers, sellers, and realtors alike. As a result, we saw the arbitrary underpricing of properties that led to even more arbitrary firm offers being submitted. Ultimately, this created risk for buyers, sellers, and lenders as we... [read more]

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