But, given that prices for homes in the city failed to budge very significantly even with such dismal sales volumes last year, perhaps it is naive to hope for such good news for would-be condo buyers, even if the market is pointing in that direction.
Prices won’t change overnight, even a year is pretty fast. These are large assets and most sellers would rather wait a bit than risk selling in a short stall. Some sellers are also very emotional and think they know what it is worth.
But if the supply is increasing the prices should start to drop.
Unoccupied real estate should get taxed proportionally with the time they’ve been unoccupied, to put pressure on the owners to either sell for less or rent for less. Sitting on empty real estate is a huge waste of resources, and should never be the economically optimal choice.
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Awesome, now prices will fall, right?
Oh.
Prices won’t change overnight, even a year is pretty fast. These are large assets and most sellers would rather wait a bit than risk selling in a short stall. Some sellers are also very emotional and think they know what it is worth.
But if the supply is increasing the prices should start to drop.
I was under the impression that Canadian house prices basically stagnated in the 1990s, varying around 10%. I suspect we’re in for that.
Unoccupied real estate should get taxed proportionally with the time they’ve been unoccupied, to put pressure on the owners to either sell for less or rent for less. Sitting on empty real estate is a huge waste of resources, and should never be the economically optimal choice.