Everything pretty much overpriced right now?

[speedfreeksteve]

I hate to state the obvious, but I think that some people are unaware or in denial about this fact. I'm referring specifically to Ontario. I'm sure there's the odd deal to be found, but they are definately few and far between right now. Some of these prices lately are both making me laugh, and making me frustrated at the same time. 

In my frustration I've been more closely checking out the Western New York prices for comparison. I have been scouting out real estate their for a couple of years. What surprises me is the price differences between equivalent properties in Ontario.

Here's one example I found:  "1.3 Acres, 2 hours and 15 mins from Toronto, rural setting, 5 kms from Lake Ontario".

The price? $9,900 USD! This is just a regular for sale listing, NOT a tax sale.

Try getting ANYTHING close to that deal in Ontario.

I'm not saying this is necessarily a good investment property, but for people like me that just want to grab a few extra acres for personal use, I'm seriously considering including Western NY in my search.

[Rob]

That is like comparing apples and oranges.  I'd love to get that size property within a  2 1/2 hour drive from downtown Manhattan.   But the market dicates higher prices because the demand is higher.  Nevermind the tax sale process if you are interested in buying a home you could buy one for less than 100 thousand in places Buffalo, Hamilton and I'd guess Caledon (although I've never checked).  To put things in perspective within a 2 1/2 hour drive from Ottawa you could get a really nice sized property near a lake or river.  But land a job near Quebec city and you can get an even larger sized property for the same money within a 2 1/2 hour drive.  It's how market functions.

The largest properties I have seen have been north near Timmons.  Why not have a front lawn the size of the Eaton's center?


But you are right real estate now around Toronto is over priced, and I believe we are at peak prices.  Within 6 months prices will start to fall a bit and within a year or 2 will be the best time to purchase before it heads up again.

[speedfreeksteve]

I think you misunderstood my perpective on this. The one property I used as an example just happened to be 2 hours and 15 from Toronto. I wasn't trying to make a point that distance from a city made something cheaper. Of course that's obvious. I was just saying that the prices in Western NY are WAY lower than in Southern Ontario.. even when comparing properties that are 10 mins away from each other on opposite sides of the border.

I could maybe more better compare some of the properties in Lewiston, NY to anything else you can find in Southern Ontario. Lewiston is just under 140 kms from Toronto, and much cheaper than Niagara Falls, ON or St Catherines (15 mins away) which is about as cheap as they come for housing prices around here.

Also, I definately wouldn't compare Hamilton and Buffalo prices at all. I have several friends in Buffalo and its suburbs. They all live like kings in roughly $120-150 thousand dollar homes, that would easily go for $350K+ in the GTA, although many of these Buffalo area homes have much bigger yards. I've seen what $150k homes between Grimsby and Niagara Falls look like, definately not the same at all.

[Rob]

I agree with you.  It's amazing what a border will add or decrease in property values.  Lets hope the prices aorund Toronto start to go lower soon.

[brassman]

Be careful what you wish for. All that is needed for prices to go lower in the GTA is a very bad economy. The whole of New York State has lost a lot of jobs to the southern states and overseas partly due to high taxes. The prices are low due to lack of jobs and therefore not enough bidders for existing homes.

[Frank]

Economics 101 - the law of supply and demand. 

We've seen prices in Muskoka peak out, and reports of 7 buyers for every listing.  Now with the widening of the highways from Huntsville to Northbay, and Parry Sound to Sudbury - we are seing prices in places like French River and Magnetawan doubling overnite.  It will likely end in about 5 years once the baby-boomers have peaked out.   Compounding that however, is the fact that there are more and more people able to work from home through the internet, and that should extend it by a few more years at best. 

Will it go down - probably with a massive recession.  However, I have too much tied up in land for that to happen (all fingers and toes are crossed).