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A comment on "Fake Chinese income" mortgages fuel Toronto real estate bubble: HSBC bank leaks. Parent comment

Re:"Fake Chinese income" mortgages fuel Toronto real estate ... by dghlsakjg on Thursday February 08, 2024 @01:36PM (#39305698)
Where are you getting a 30% drop in 2022? The BoC data shows <10% from the absolute peak to the absolute trough. https://housepriceindex.ca/#chart_change=c11

If you cherry pick the localized data, even the worst off suburbs of Toronto you see a dip of just over 22% with a pretty quick reversion to the mean. If you look at metro areas, none of the cities in Canada saw greater than 10% drops from 2022 peaks, and they have all recovered from the bottom.

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Re:"Fake Chinese income" mortgages fuel Toronto real estate ... by randomdata on Friday February 09, 2024 @02:42AM (#39312444)
CREA.
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Re:"Fake Chinese income" mortgages fuel Toronto real estate ... by dghlsakjg on Friday February 09, 2024 @01:15PM (#39318242)
ah. CREA reported a ~30% drop in average sale price across all transactions, true. That is very different than a 30% drop in the value all real estate.

If you break it out into type of home, it shows that the average price drop is about ~10% for any given market. This shows that consumers in 2022 shifted buying preferences from expensive home types to cheaper home types. This makes a lot of sense given the push for multi family housing and rising interest rates.

The value of individual housing didn't change 30%, it was mostly just a market shift towards cheaper housing. If people shift from buying Mercedes to buying Kia, the average transaction price for a car will fall a lot, but that doesn't mean that Mercedes is on sale for cheap.

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