I saw this happening in the middle of November, when the bottom fell out of the extremely frothy Unionville market. Then we went through our 6 months of a listing strike. Now we come to the fact that most people can't hold out any more. Walk away from your deposits, people. Don't be caught holding lots of houses.
Everybody and their dog in Toronto has two houses, one they are holding on to, and the other being built and just coming on-stream. All those giant condo buildings going up in the middle of nowhere have deposits. For 10 years or more, it was the key to riches. Everybody in those outer tract lands played the game of buying early in a new subdivision and then selling the old one for a big profit.
Now these people must dump. The prices will be determined by the most desperate. A divorce? Death, whatever. All the banks have designed this boom expecting a 20% drop. Ha! These things are never what you expect. We have binomial theorem working here, and it isn't kind.
“It’s fear,” Century 21’s Evans said. “It’s another contributing factor to the fear of ‘what’s going to happen?”’