Baby, we got a bubble!?

[interested]

i heard noise from here and the following G&M article that units at the Ritz were sold for under $700 psf

http://www.theglobeandmail.com/life...iew-of-the-blue-jays/article2435912/comments/

I recall seeing in MLS a unit at $686/sq.ft.
There have been some that the purchaser could not close and so probably lost the down payment. Very early people were in at $500-700/sq.ft. range.
If the comments are true, I am guessing the vendor may be offering "blocks" say of 4 or 5 suites at 2006 price just to move them allowing someone else to sell and potentially make a profit.
The comments about the SW suites are really interesting if true and the CN tower keeping people awake at night. Southwest is usually the most valuable view.
This would just be another huge negative for this project.
As I said before, I think we may see differences building to building if this is the case.

 

[urbandreamer]

I just asked Iris (Android version of Siri) "Is the Toronto condo market going to crash?"

Iris' answer: "If it is then I'll be very surprised."

So there you have it. Iris is the Condo Goddess.

 

[interested]

^^^
I'll bite and show my ignorance.
Who is "Iris?"

For that matter...who is "siri"

 

[urbandreamer]

Iris is the new Condo Goddess. https://play.google.com/store/apps/details?id=com.dexetra.iris

She has dethroned Princess Siri: http://www.apple.com/iphone/features/siri.html

(Siri when asked the same question by a realtor I follow on twitter, replied "I cannot look for places in Canada.")

 

[macookie]

Iris is the new Condo Goddess. https://play.google.com/store/apps/details?id=com.dexetra.iris

She has dethroned Princess Siri: http://www.apple.com/iphone/features/siri.html

(Siri when asked the same question by a realtor I follow on twitter, replied "I cannot look for places in Canada.")

Can you ask Iris, if it's a good time to invest in pre-con?

 

[interested]

thanks UD

 

[Polkaroo]

According to Garth Turner there are currently 85,000 condos being built in the GTA? If that's true, who is gonna live in all those condos? I know Toronto is growing, but it's not growing THAT much.

 

[cdr108]

According to Garth Turner there are currently 85,000 condos being built in the GTA? If that's true, who is gonna live in all those condos? I know Toronto is growing, but it's not growing THAT much.

i thought the numbers floating around were 20,000 - 25,000 units annually

 

[interested]

^^^
I have read there are approximately 50000 units due to come on line in the next 2 years so this matches cdr.
Of course, this is "new condos" only.

 

[Wooba]

Turner's numbers are building, selling, planning etc.

 

[radioheadmike]

For the sake of a crash happening, why doesn't the government (not sure which level of gvnmt this applies to) stop providing permits to the developers for at least 5 years so that inventory can catch up with demand.

 

[Riverdale Rink Rat]

For the sake of a crash happening, why doesn't the government (not sure which level of gvnmt this applies to) stop providing permits to the developers for at least 5 years so that inventory can catch up with demand.

?? Well, Canada having something called the 'free market economy', the builders will stop asking for permits once demand slows down. (Yes, yes, I know this will mean cyclicality in the construction industry, but that's what happens in a long-cycle durable good sector of the economy.)

The issue is more on the demand side than supply right now -- the debate on whether credit should be tightened is much more germane to popping a bubble (if there is one.) Limiting supply when demand is hot would exacerbate the bubble, not help.

 

[radioheadmike]

I am sorry but the "free market economy" no longer applies since Fall of 2009.

But your other point makes sense. Thanks.

 

[jeff316]

I am sorry but the "free market economy" no longer applies since Fall of 2009.

The market wasn't any less or more 'free' before Fall of 2009 it just took a different tack based on new government decisions at the time. It's not like the government only started regulating and implementing monetary policy post crash

 

[radioheadmike]

The market wasn't any less or more 'free' before Fall of 2009 it just took a different tack based on new government decisions at the time. It's not like the government only started regulating and implementing monetary policy post crash

Fair enough. So why doesn't the government "regulate" the amount of units that can be build within a specific period.

This could prevent the developers from hurting themselves from overshooting the market due to greed, it could prevent home owners from losing equity, and prevent the tax payers from having to bail out the developers, the investors, and the unfortunate home owners.