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i still dont see your 10% reduction taking place, if any correction of any substance would of occurred it would of taken place in the last few months, spring normally yields stronger sales thus driving prices higher. buyers determine sales and sellers determine price is very flawed as there are many variables, stop cutting and pasting, please.

ill do better and give you 2 for now, demand- as stated prior with reasons, price- still affordable.

tsk, tsk, dont get edgy! try reading something more than the star. well read and informed is taking common denominators from various sources and coming out with a well rounded conclusion. You are adhering to the masses of media. look further and you will find it.

not angry at all, immigration is a key factor, not all immigrants come here with no skills/money. i myself dont want prices such as Vancouver, N.Y. city or other markets with un affordable prices. housing i think is holding up our fragile economy, hence the freeze in rates in the last few days. i just dont see a gta wide 15% drop, what bad decision can people make? easy credit will always be there in any conditions. it wouldnt matter to my situation if prices did drop as im in my current home long term.

The flawed lending system in the u.s. is no comparison. we dont and didnt have sub prime mtg. i honestly dont follow japan as it is of no interest to me and i dont see how it is to you or anyone on this forum. interest rates were not the catalyst of the situation. please educate yourself before you post banter. you are actually swayed by the mainstream media as your previous quotes have indicated. you are quoting so and so and now claiming to be a radical thinker. 20 yrs ago the adage was if the u.s. sneezed Canada had a cold, this no longer rings true. Even with recent global meltdown we were relatively unscathed.

Please re read my post. im not saying easy credit is the answer. far from it,

Please dont threaten to stop arguing with me. outside the box and radical usually go hand in hand.

It's completely unknown. It would be nice to say there will be a drop in house prices by x%. It would be nice to say there will be an increase in house prices by x%. If anyone knew this, they'd be billionaires.

House prices are going to drop by 10%? Sell everything now, wait, then buy back.

House prices are going to raise by 10%? Buy everything now, wait, then sell back.

History has little effect on the here and now. Each time is different. The crash in the 90s was caused by loss of a manufacturing sector combined with upsizing by baby boomers. The 90's didn't have a Canada as strong in global exports of commodities like Oil, Steel, Wood, etc. It was recently announced that Canada will be piping oil from Albeta to Texas. China remains a top consumer of our resources.

We have a global currency crisis... China is refusing to let their dollar inflate as it should based on their exports vs. imports. If they continue, we will see job loss which could cause a collapse of the housing market. I don't personally feel the world will stand for it and it's already been hinted that the USA will soon begin devaluing their dollar to pressure China. As a dollar devalues, so does the debt owed by everyone in the country - including mortgages.

China is experiencing record growth -- 13% 14%. They can't continue to be the "cheap place" to manufacture goods -- workers are already demanding raises, costs of doing business are increasing and it's becoming less and less viable to keep it offshore vs. onshore. I read a recent article saying that the USA actually is 3-4x more efficient at manufacturing than China and as the wages and costs increase, their advantage will decrease. This is why they don't want that dollar to inflate. That would mean more jobs in North America -- a boom -- and an increase in real estate values once again.

We are living in very very strange economic times and nobody knows the future. If anyone did, they'd be rich! If anything, it has always been said, when the economy is faltering and unknown, buy things that are tangible. Real Estate will always be tangible as a LONG TERM investment. This is why gold sells through the roof in times of uncertainty.. A house will always be worth fair value when compared to average wages.

On a side, many feel the stock market is a better prediction of economic growth and stability vs. the bond market.. the stock market is showing record gains right now -- big business are showing record profits.

If I was in the business of buying and selling homes every year or two -- i'd be extremely worried -- If I was a regular Canadian homeowner living within my means -- Real Estate still would remain a top investment and a safe place to put my money.

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I do enjoy this discussion, and the valid points on all sides of the debate, but for me it comes down to this....

If you truly believe in a specific prediction, instead of just talking about it, I hope everybody's actually DOING something about it. In the end, winning an internet argument is going to get you nothing, unless you've actually lined up your investments to back your prediction, and DO actually win

Everyone is entitled to their beliefs, and at a minimum, if they at least provoke conversation and thought, they're a positive thing.

+1

I already asked ol skool if he sold his house already and renting like some other 'housing market is falling' folks did back in 2005....but he dodged that question

If I had stock that I am certain will go bad, I will not hold on to it.

Also keep in mind a house is not only an asset, but also a "home".
There is a big difference between maxing out your mortgage capabilities living in an 800k home, or living comfortably in a 400k with a smaller debtload, more equity in your home and thus less risk. It might might sense to sell off the 800k place, but if you're already in a 400k place with a much smaller mortgage, the risk is inherently lower and most people would rather just enjoy life and family in the home they are in.

It's so much more than black and white depending on where your opinions lie and what your priorities are, but if you indeed think there's a 30% decline coming, you shouldn't own anything you can't afford to lose.
As for 10%. well most of our homes have gone up 10% or more in the past couple of years, so the only ones in an trouble are those that maxed out financing in the past 18-24 months based on the most recent increase in value. I 100% agree that IF there's a slight decline, some people could have it rough, that's why I greatly value proper planning and understand that everyone has their own opinions on risk.

Interesting article from today's paper:

http://www.yourhome.ca/homes/article/862116

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lets say prices did go down 10%. how would it make a difference? the only reason i see is if your looking to borrow from the home. or liquidate entirely. over the long term it has proven to be a great investment. also pointed out is you need a place to call home as well, i dont view my main residence as a cash cow or worry if prices go down or what the neighbour sold for. my other investments in rental properties have proven to be a much better return than rrsp or any other investments ive had over the last 12 yrs.

i dont think your qualified to know what the majority of people are doing with their finances, or to even project inventory status apon their retirement. really now! why do you even care? on a large scale this a relatively small discussion forum, are you trying to save a few souls from despair? im just trying to grasp where your coming from. just because you wont pay current price of your home, there are people that will as thats what the current price is. believe it or not! you should be happy you have a few bucks equity in your home and you have done well. the market has worked to your advantage, for some it may not have played out this way and cant even get their foot in the door, be thankful and stop fear mongering!

Don't forget there was a 5/40 and even a 0/40 for a while as well (banks would cash back your 5%).

A smart move would be for the government to get rid of 35yr and force 30 years to have 10% down.

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