Toronto Condo Market?

[youwontknow]

What are your thought? I heard it might crash because of over flooding condo unit and I also heard it's going to keep going up? With in the next few years I might be considering purchasing my first home I want to be close to my job in downtown but haven't decided if I want to invest in a condo or a town house. I don't mind being slightly out side of downtown as long as I'm in Toronto.

Should I hold out for a few more years until the market become stable?

 

[appleb]

They've always been saying there is going to be a crash for as long as I remember. And prices just kept going up.

 

[Teal]

I highly doubt there will be crash anytime soon.

 

[Tangwhich]

The recent sale stats for new condos are brutal. Some of (if not the) worst on record. There will be significant corrections in the condo market in Toronto and it's in the very beginning stages. Since you're looking at a few years down the road you're golden. Buy the time you're ready prices will be much cheaper than today.

 

[gltrotter]

no comment

 

[james t kirk]

Interest rates will not be 8 percent. They have not been that high since the early 90's.

Anyway, as to the condo market - it is over-built. No doubt about that and guys like David Mirvish may want to reconsider 3 new 80 storey towers. (Then again, what do I know.) Iread that there are 50,000 unspoken for units either on the market, or entering the market. That's a lot.

Mind you, don't developers wait to break ground until they are about 80 percent sold??? (Correct me if I am wrong.)

I think Toronto will continue to grow. Almost 60 percent of the immigrants to who come to Canada want to settle in Toronto.

 

[Sniper Jr.]

Interest rates will not be 8 percent. They have not been that high since the early 90's.

Anyway, as to the condo market - it is over-built. No doubt about that and guys like David Mirvish may want to reconsider 3 new 80 storey towers. (Then again, what do I know.) Iread that there are 50,000 unspoken for units either on the market, or entering the market. That's a lot.

Mind you, don't developers wait to break ground until they are about 80 percent sold??? (Correct me if I am wrong.)

I think Toronto will continue to grow. Almost 60 percent of the immigrants to who come to Canada want to settle in Toronto.

It is only a small percentage of immigrants who actually settle in the city of Toronto itself. Immigration is not going to support the huge number of condos being built currently. The fact that most of those condos were pre-sold by the developer doesn't mean there won't be a crash. A lot of investors who bought units hoping to flip them quickly are now having trouble unloading them, and once they start to get desperate I would expect a lot of cheap condos to be available on the secondary market. I'd be expecting a crash, or at least a steep decline, in prices over the next couple of years.

 

[msog87]

The recent sale stats for new condos are brutal. Some of (if not the) worst on record. There will be significant corrections in the condo market in Toronto and it's in the very beginning stages. Since you're looking at a few years down the road you're golden. Buy the time you're ready prices will be much cheaper than today.

this, and btw mortgage rates can go to 8% easily. back in the early 80's after the loose monetary policies of the 1970's rates went up to 20%. remember, interest rates are at emergency lows now, they need to go much higher and will go much higher the longer they wait to raie rates the more aggressive and higher they need to eventually raise them to combat inflation. its not a coincidence that the housing bubble is beginning to burst as canadian household debt has hit record highs, surpassing the uk and us before their housing crash. wait 3 year minimum to buy. we wont get a u.s. style crash bc we have much better lending standards, but id expect prices to fall 20-30%. the housing market in toronto prices have gone up 100% the past 10 years, a 20% decline is very reasonable. I mean when you have the big banks who spew housing propaganda admitting there will be a 10% drop, you know its gonna be bad

 

[msog87]

They've always been saying there is going to be a crash for as long as I remember. And prices just kept going up.

none of this is sustainable, and anyway any doubt should be gone asd the latest sales figures have been bad, sales declines always preceed price decline by 6 months or so.

 

[OddSox]

this, and btw mortgage rates can go to 8% easily. back in the early 80's after the loose monetary policies of the 1970's rates went up to 20%. remember, interest rates are at emergency lows now, they need to go much higher and will go much higher the longer they wait to raie rates the more aggressive and higher they need to eventually raise them to combat inflation. its not a coincidence that the housing bubble is beginning to burst as canadian household debt has hit record highs, surpassing the uk and us before their housing crash. wait 3 year minimum to buy. we wont get a u.s. style crash bc we have much better lending standards, but id expect prices to fall 20-30%. the housing market in toronto prices have gone up 100% the past 10 years, a 20% decline is very reasonable. I mean when you have the big banks who spew housing propaganda admitting there will be a 10% drop, you know its gonna be bad

I remember 20% rates!

On a mortgage of $200-300k it doesn't take very many interest points to add up to a huge amount of money!

 

[mykonos]

A whole lot of wishful thinking there. I know people who sold their home at the peak of the market, and rented a condo while riding out the crash. After the crash, they repurchased near the same neighborhood for substantially less. This is the dream of every home investor. I also have friends who thought the market was going to crash, so they waited for four years to buy a home. Prices kept going up and they finally threw in the towel and bought at a higher price than they expected. Then the market crashed. Housing is a long term investment, and sometimes you just have to commit.

With the new rules for qualifying for a mortgage that the federal government brought in earlier in the year, it has taken a large part of the population out of the market... sales are plummeting across the country I believe the numbers came out a few days ago about toronto... down 20% over Sept a year ago

Prices must follow...a few sources are saying a correction of 30-40% is in order and a very long recovery time.

real estate agents / companies are lying to people and saying it is a great time to buy.

The Govenor of the Bank of Canada said yesterday that rates will start to go back up in the forseeable future - Europe raised rates a couple of days ago

 

[msog87]

With the new rules for qualifying for a mortgage that the federal government brought in earlier in the year, it has taken a large part of the population out of the market... sales are plummeting across the country I believe the numbers came out a few days ago about toronto... down 20% over Sept a year ago

Prices must follow...a few sources are saying a correction of 30-40% is in order and a very long recovery time.

real estate agents / companies are lying to people and saying it is a great time to buy.

The Govenor of the Bank of Canada said yesterday that rates will start to go back up in the forseeable future - Europe raised rates a couple of days ago

what you said is true except for europe raising rates, they have been lowering them. its more likely the bank of canada will lower rates before they will raise them as the world economy is only getting worse and every other central bank in the world has been easing monetary policy. but lower rates won;t save our housing market, the only way for the run to continue is if the banks are allowed to make bad loans backed by the govt to unworthy mortgage borrowers. since the harper govt has been tightening regulations that looks unlikely, however if homeowners start crying foul as their home equity declines who knows what the govt will do to prop up the market, the good news for buyers is that anything the govt does will only merely postpone the market correction,a big price decline is inevitable and cannot be stopped

 

[youwontknow]

I think I'm going to wait a few more years before I buy the market seem kind of unstable.

Thanks guys

 

[pipelayer]

I will purchase an investment condo in Toronto in 2-3 years. I expect the current low occupancy rate in downtown new units plus an eventual interest rate increase willcause a correction. I think in a few years you willbe able to get much more for yourmoney than you can now. Vancouverreal estate down 25pct from its recent peak.

 

[rxxxryan]

I will purchase an investment condo in Toronto in 2-3 years. I expect the current low occupancy rate in downtown new units plus an eventual interest rate increase willcause a correction. I think in a few years you willbe able to get much more for yourmoney than you can now. Vancouverreal estate down 25pct from its recent peak.

This is the part that i dont understand. There seems to be tonne of people waiting for a drop in prices... The minute prices drop people like you will end up driving the prices back up.

 

[peter4025]

I've been saying this for the last year but people always answered me that is not true. The construction industry has been steadily slowing down for the last two years. I know lot of people that don't have work. Whenever you see lots of forklifts in the city around custome build houses it means that subdivision crews are moving into small projects as there is not much work on major projects. Labour prices are coming down. Many tradesmen are making same money that were making in the 90

 

[msog87]

you cant buy an "investment" condo now bc cash flow would be negative as your tenants rent wouldnt cover the monthly expenses. my advice to any would-be condo buyer would be to wait until mortgage rates are much higher, the higher rates go the cheaper your price will be. yes ull be paying higher interest, but on less principle. as rates then begin to decline again, your house/condo will appreciate in value. thats the idea you want to buy when rates are high and sell when rates are low ppl have it backwards they buy when rates are at the low end of the cycle. to diversify im probably gonna buy a condo and rent it out, put 15k down or so if I can make a few hundred a month profit after mortgage and ultilities and yes condo fees. we'll see how low prices go

 

[paleofreak187]

The whole housing market will go to shit. My custom made home made by my dad just sold for 1.2 million. Only a fucking idiot would pay that much for a 2400 sq ft. home. I am renting and putting the money in the bank. I'll buy wen the market goes to shit.

 

[msog87]

The whole housing market will go to shit. My custom made home made by my dad just sold for 1.2 million. Only a fucking idiot would pay that much for a 2400 sq ft. home. I am renting and putting the money in the bank. I'll buy wen the market goes to shit.

some girl at my work who just got married bought a house this week, talk about the worst time. everyone was congratulating her and I couldnt bring myself to tell her what a big mistake she just made.

 

[paleofreak187]

some girl at my work who just got married bought a house this week, talk about the worst time. everyone was congratulating her and I couldnt bring myself to tell her what a big mistake she just made.

I'll be honest with you- I feel like I ripped the family off. It's a nice home and my dad is a builder and he put the top Italian shit into it but in 2-3 years that home will be worth 600-700K tops. It was listed for 1,099,000 and it started a bidding war ( A BIDDING WAR IN JUNE!!!!) and went for close to 1.2. I almost felt like telling them not to buy it.