Condo market slows down in GTA?

[TrickyRicky]

I don't invest in condos because I don't believe in their long-term (multi decade) fundamentals; however, anecdotally I know a lot of people who would buy but can't justify the high sqft costs and don't particularly like many of the new projects.

This is somewhat encouraging because it means that there is a price floor out there represented by real people actively interested in buying over the next 5 years. My hunch would be that as a result many of the new or newer larger buildings will struggle, particularly in saturated areas and areas with higher cost-per-square foot. On the other hand, I believe that ironically demand will be higher for older condos with few amenities and smaller "niche" projects that either are in good shoulder neighbourhoods or cater to specific demographics.

 

[interested]

I don't invest in condos because I don't believe in their long-term (multi decade) fundamentals; however, anecdotally I know a lot of people who would buy but can't justify the high sqft costs and don't particularly like many of the new projects.

This is somewhat encouraging because it means that there is a price floor out there represented by real people actively interested in buying over the next 5 years. My hunch would be that as a result many of the new or newer larger buildings will struggle, particularly in saturated areas and areas with higher cost-per-square foot. On the other hand, I believe that ironically demand will be higher for older condos with few amenities and smaller "niche" projects that either are in good shoulder neighbourhoods or cater to specific demographics.

I think many mid range non descript larger projects will have problems. Marquis buildings may still sell well. Small buildings will also.

I suspect these very small barely livable units will suffer and languish when the investors want to unload as I don't think end users will want to buy them if they are not increasing in price. I think they will "rent them" if that is all they can afford and want to be say in the location, e.g. downtown but they will become hard sells.

Older well maintained/well designed layout condos will hold value or at least not depreciate as much.

 

[ducati0000]

The average price of a GTA home was up more than 8.5% in ... “It's still a seller's market for houses, but condos have slowed down a lot.

where did you get the %8.5 figure...last report the medium increase was %2 in the city core..condo sales is down for sure though..

 

[Kenny]

where did you get the %8.5 figure...last report the medium increase was %2 in the city core..condo sales is down for sure though..

The Toronto Star:

http://www.moneyville.ca/article/12...state-sales-down-but-prices-up-from-last-year

Worst paper when it comes to reporting real estate news, bar none.

 

[Flux Capacitor]

And if you're wrong in a year, what would you say then?

The Finance Minister himself is expressing concern that Toronto's condo market is overbuilt.

It's been about 3 years. And what are you going to say?