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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: C.K. Houston who wrote (734)	9/3/2001 11:39:42 AM
From: N_2_T_N_A	Respond to of 306849

CK, I like looking at new/resale home sales in terms of median price volume relationships .....no different than any other stock.....in the Toronto Real Estate market....the uptrend line in home sales since 1995 was violated in April of this year.....the trend has changed....we all know what happened when the Nortel 5 year TL was broken....will real estate pull back....yes....will it crash....no....but if I were to be a first time buyer at this point....the trend is your friend....no need to rush in just yet. I like looking at volume numbers in particular in our local market....during the late 80's boom....the number of condos sold annually in 1987-88-89 were along the lines of 12.5k,13.5k,14.5k(from memory...stats are on file some where...lol)....with an average price of 325-400/ft2.....the 1990 real estate collapse of the local real estate market resulted with only 1.3k unit sales....a massive drop in volume.....in other words u sell during heavy volume and buy during low volume.....same principles apply....the sales of condos in the Toronto Market during the last three years have returned to their glory days of the late 80s....12.5k-14.k annually....is this the time to buy....if u are looking for an investment....definitely not...is this the time to buy if you are looking for a home...yes if your employed and your financially sound and plan in staying in the local market for the long term......cheers...DD