John Pitera's Market Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: russet who wrote (6107)	5/16/2002 9:23:42 AM
From: Cogito Ergo Sum	of 33421

Hi russet, The Toronto bubble, hyperbole or early days ? I went through the last one very profitably :o) This one is not the same and I have serious doubts (for the nonce) about the popping effect greatly influencing the overall economic situation here. I live now out east on the Toronto side of the Pickering border. (ex: Thornhill dweller). I bought my current home for 220K. It is probably the lower end of the midrange for my area. The folks I bought it from paid 320K about 8 months after the last bubble peak (EDIT my timing may be a bit off there). My home is about 250K market value now, 7 years later, a long way from the last bubble peak. While it is certainly true that like the last bubble you bid over the ask as a rule, it is not the rule like last time. My point is that the bubble is not epidemic in Toronto and outlying areas like the last time ( at least not yet) but constrained to specific areas without a general spillover. Interestingly my next door neighbour is a home appraiser. I questioned him specifically on this seeming anomaly. He told me that this was indeed the case that he was seeing, very localised bubbles especially in the higher (lower volume) high end homes. Maybe it's moving to hard assets and / or cocooning for those more affluent ? I know 'cottage' prices in the traditional getaway areas are definitely sky high though. More anecdotal evidence: One of my customers is a home builder of lower to midrange homes, in the burbs. They are doing a booming business BUT not seeing bubble increase in prices year over year. Of course we may be just at the point where it starts to go parabolic and raises all boats and is not anywhere near popping yet. Frankly if my home goes back to last bubble valuations I'd be hard pressed not to sell and relocate for a few years. (My home equity is high). On the productivity / unemployment issue: Message 17465855 As usual all FWIW, MHO and I may be all wet.... regards Kastel

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next