The Worst Pre-Construction Condo Market in 23 Years

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[@longdog33]

The question is why are housing prices so high in Canada? It must be because there is not enough housing stock. Taxes are high as you’ve pointed out which acts to lower demand and therefore purchase price. Developers are not making enough profit? Nowadays they can’t sell enough precon with high interest rates killing demand and affordability. But low rate of construction seems to have been a problem for the last decade at least. Why is that?

[@c00121314brave]

Hey Jordan, love your videos jam packed with unbias informative information. My wife and i bought a pre-construction condo in Valhalla town square in 2017, very happy living there now thinking of possibly buying another but all the uncertainty makes us wanna wait for now, but we both love your videos.. keep her lit!😊

[@Precondo]

Love Valhalla! Great purchase & thanks for watching 🙏🏼

[@longdog33]

I think you misunderstand how taxes work. Developers do not make money off of taxes. They do not pay sales tax and land transfer tax. So if these gov taxes are made to disappear, it doesn’t change the cost to a developer of building a condo nor the profit margin. It doesn’t save the developer any money. There is no money to be “passed on” to the buyer by the developer. It does lower the cost to a buyer but it is not out of the kindness of the developer. It’s because of gov reducing tax which of course could incentivize a purchase.

[@robertw3299]

Great Video please keep them coming.

[@russiskv]

Thanks Jordon for posting this video. I am expecting that BoC will keep the rate unchanged on September 7 meeting. If that happens, it will be a lot better than 0.25 hike!

[@Precondo]

Thanks for watching 🙏🏼 same camp here

[@alexsmith-ob3lu]

Great video, as always! Aside from the financing of new construction, I also believe that overtly strict zoning codes and a skilled labor shortage is also compounding the issue. “Not Just Bikes” channel has made wonderful videos describing how zoning codes also affect the cost of new home construction a lot. Also, the government is asking for more skilled tradesmen to be trained, but many companies simply do not want to train more tradesmen because there is no real incentive. Just seems like a downward spiral…

[@Cameron_David_]

Further subsidies for speculators is not going to fly.

[@Kaygee79]

With the level of immigration coming in, house prices will not crash, simple supply and demand issue. As crazy as all this information is it will actually make everything that is left more expensive.

[@KManAbout]

Housing prices can crash if even with a crash they remain unaffordable to the new immigrants.

[@g.r.2985]

Thanks Jordan, another great video! Putting your speculative hat (back?) on, and looking long-term (though it may not be that longterm), how do see things changing if/when the Conservatives win the next election?

[@thecanadianrealestateshow]

Yikes. Glad I just went firm on my deal

[@Precondo]

Congrats man!

[@rdefacendis]

Development fees are a way for cities to download the cost of running a city to new buyers rather than raising taxes on existing residents to pay for the services they expect. It is more politically expedient to have a few developers complain about development charges then explain a big property tax increase to the entire electorate. Want to bring development charges down in TO, time to raise property taxes to the level that existing residents are properly funding the city.... minimally, 10% increase each year for the next 3-4 years.

[@vikram.SumerSingh]

Immigration needs to be capped until Housing and Healthcare is capable of supporting the inflow. Also, surprised to know that Govt fees are unto 31% wow. This is a double whammy, you cannot blame the builders.

[@gilboman]

without immigration, where's the healthcare workers and construction workers going to come from? and it's not gov't fees that's 31%, that's just the cost incurred to support new growth

[@honestrealestatetalk]

7:25, I'm surprised you don't have a Hunger Games style thumbnail :)

[@Precondo]

missed opportunity

[@repCanada]

Amazing analysis and commentary. You should get into politics

[@randomstuffman01]

Interesting. Thanks. toronto

[@kevinn1158]

The city of Toronto has massively failed in controlling what's being built in Toronto. They have spent 23 yrs allowing developers to build tens of thousands of tiny boxes in the sky, which are used for rentals for singles. And there's been almost no family units being built in the core of the city. This is what needs to be produced now. There's very little diversity in the core of Toronto's real estate market. Wrt the Bank of Canada, they are pausing probably for 3 months to track the impact of the hikes but don't expect cuts. In fact, I won't be surprised if we eventually get another couple hikes going into Q1 2024. So good luck everybody thinking the market has hit a bottom. It's not even close. The US 2 year bond has been bumping up against 5% for months now and it could easily move to 5.5-6%.

[@panijefer]

Consider financing for qualified buyers. Developers have to do self-financing for lower interest rates then banks, to sale inventory until it is marked recovered.

[@empireinvest2118]

Calgary market is exploding with no units for sale

[@CityEstates]

Creekside to the moon!

[@robertw3299]

A Reduction in Government Fees is a major solution. This may happen after Canada dumps the current idiot and his clown car government out of office.

[@Plxzguy]

Is there price list for Bellwoods House?

[@Precondo]

no it hasn't launched yet, launching this fall

[@rjkrjk8344]

They're going to raise the rates again because the people aren't defaulting fast enough. The Government is on a tight schedule 😮

[@andrewmccoll1582]

Hey not everybody agrees immigration is a great thing - lol

[@javiersantos4385]

I like your videos, but I watched you on the other channel with the other guy who curses like a drunker sailor and doesn't really add value #justsaying

[@Precondo]

who curses like a drunken sailor?