Toronto Condo Sales Are Tanking - But Asking Prices Aren’t Budging. Here’s Why 📈

[@mr.d4295]

Buyers can DEFINITELY wait out the seller's. Be patient and watch the prices drop

[@Canadian_Eh_I]

Yup nobody HAS to buy but people do sometimes HAVE to sell

[@marshferguson4737]

@mr.d4295 very true!

[@christinalandsman]

I don't see prices dropping - at least not in the US (I dont know Canada's market). When interest rates inevitably start dropping, all the pent up demand from people who want to move but haven't HAD to move will come out of the woodwork.

[@Canadian_Eh_I]

@@christinalandsman You look too young to have lived through a real downturn. This will not be like 2008 IMO

[@christinalandsman]

@@Canadian_Eh_I I’ll take that as a compliment :) we actually bought our first house in 07 and sold it over 10 years later for less than what we bought it for :( but I agree we absolutely are not repeating that for so many reasons

[@RD-ce6bb]

Homes and condo's should be purchased as shelter not an investment / flipping.

[@vert911]

it can't be both?

[@RD-ce6bb]

It is both ​@@vert911

[@quixomega]

@@vert911 Not if you live there, but if you don't it can be. But traditionally housing is not a good investment compared to the stock market or bonds. The current mania is a short-term thing that's liable to die eventually. Bubbles have always popped in the past so there is little reason to think this won't pop in the future. But it's all about timelines which are very uncertain based on immigration, government support for high prices and of course the spectre of a recession.

[@vert911]

@@quixomega there are many Canadian families who factor in the appreciation of their primary residence as a large portion of their retirement. This has proven effective for over 20 years. Why should anyone change that now with only a 2% drop in average price YOY in all product categories? With only a declining market in the last 2 years, with 2 decades of proven equity appreciation?

[@gsin311]

​@@vert911 exactly that

[@marshferguson4737]

Condo fees are like another mortgage payment! $2000 for a mortgage and $1200 for fees 😂 its ridiculous.

[@gsin311]

It is so stupid to invest in condos, i didnt touch them with a 10ft pole

[@DummMoney-rr1fi]

@@gsin311this is the best advice i ever heard. i agree 100%.

[@michaelspeck5706]

Don’t forget the parking spot that cost 80k as well

[@ronl1633]

Old dog here, you would have to be nuts to get into this market. Consumer debt is off the charts in Ontario and next year there is a lot of mortgages coming up for renewal 2025/26. Prices are to high for the market, Its the perfect storm of debt!

[@Lifeisapartydresslikeit]

People buy condos for downsizing, first homes, divorce or even international students. It may not be ideal for you but I know many people who recently purchased condos

[@andrewcrook2240]

100% don't buy now..house of cards is coming down. It's pretty much guaranteed.

[@DummMoney-rr1fi]

If I follow your advice, I'd be very sorry in 30 years. I almost followed that advice 30 years ago, but I'm sure glad I didn't, I now am asset-rich and am only working cause I love the grind and my skilled job allows me to put a big chunk of my 10k steps a day I achieve

[@jay1645]

Consumer debt needs to go off the charts till no longer visible lol .. Minsky moment, not there yet

[@andrewcrook2240]

@@Lifeisapartydresslikeit were they 350sqft shoe boxes? The vast majority of condo sales I'm seeing are livable units. 1+1 bedrooms (min) usually 2+ with parking.

[@joka5345]

This ain't a buyer months 😂😂 F these prices

[@troybrandt312]

yeah I laugh every time I hear someone say it's a buyer's market...LoL where exactly? It's plain stupid to buy anything right now.

[@xtremel1]

The main reason the owner’s condos are selling is because they are not just shoeboxes; they are lived in and ‘livable.’ In contrast, units owned by investors are not designed for practical living, sometimes not even fitting a normal bed in a 1x1 bedroom. I feel sorry for the owners of those units, but the builders should go bankrupt for designing such impractical spaces.

[@jay1645]

Convert to aff. housing lol

[@edwardlenovo3240]

It's not just builders that are to blame, but politicians demanding and subsequently implementing zoning by-laws requiring "Higher Density", which translates into 2 bedrooms in 500-600 sq/ft. Can't entirely fault builders, who are trying to comply with asinine demands from inept socialist politicans, who don't live in these kinds of units.

[@joka5345]

I need 2015 prices

[@mr.d4295]

@@joka5345 Be patient, 2012 prices are coming

[@noseboop4354]

Then buy a time machine.

[@benitodelbenito]

People just don't want to take losses on their condos. Its very difficult for human beings to take financial losses even if they know there is a risk of even greater losses. They tend to hold on too long. Assignment/pre construction is where we are seeing people start to loose their shirts. We are a few well publicized condo corp bankruptcies away from a crash.

[@vert911]

the financial stability of individual condo owners should have no impact on the finances of the corporation, who would (should) have a reserve fund in the millions. More than enough to cover the OPEX for any group of owners experiencing financial hardship. Now if you are referring to some precons... yeah they are f'ed.

[@benitodelbenito]

@@vert911 So if 10% to 20% of a building end up being people that cannot actually take on the mortgage and this happens to 2 or three buildings its no big deal? If you have to sell off stuff at a huge discount isn't that bad for all the condo prices around you?

[@vert911]

@@benitodelbenito Yes. which is why I said Precon is screwed in my original reply. Don't invest in condos with unproven corps, its like investing in a startup. Very risky.

[@peterbanh1364]

Current price is too high. If you buy it and rent out. The rent is NOT enough to cover the mortgage, not even close.

[@quixomega]

It's almost like this is some sort of housing bubble or something.

[@andygrenn680]

Real Estate is the most boring subject on the 🌎 planet!

[@lennyl6856]

The rent IS enough to cover the mortgage IF the down payment is sufficiently high enough to allow for a smaller mortgage payment. Buyers who make themselves financially vulnerable and don’t realize it have no one but themselves to blame.

[@andrewcrook2240]

​@lennyl6856 this shows you have little understanding of money, investments and how rentals work. No one with a brain is putting 50% down to get the payments to match the rental amounts needed to carry. That 50% is much better put into a 4% GIC than locked up in a condo that is just barely cashflowing. Especially with the downside risk of asset deflation.

[@vert911]

@@quixomega not a bubble. This has been proven by the resiliency of prices through the hardest times since 1984.

[@edwardlenovo3240]

I have a hypothesis, about why a lot of "vacant" units are not selling (aka units there were bought on plans several years ago). It was maybe 5-7 years ago (maybe a little more) that city politicians, really really start emphasizing "higher" density, particularly in the downtown core. What this translated to is developers having to create these craptastic 500 sq/ft 2 bedroom etc. ALOT of people are not great at spatial awareness, can't picture real dimensions when looking at the market plans. Now that there is glut of these things out there and people can really see how "big" (read tiny), they are going fuck that, why they hell would I buy this? So all the people who bought on plans and are taking possession now are stuck because they didn't realize what a terrible product they bought.

[@GarethBushMusic]

I check the listings daily and it's crazy that prices remain steady. So frustrating.

[@sanhtu77]

i refuse to lower my price for greedy buyers. the price i want is the price ill get.

[@GarethBushMusic]

​@@sanhtu77Condo investors calling anyone greedy after what's happened over the past decade is objectively hilarious.

[@Canadian-SK]

Prices are not going to the MOON, they are already on the MOON. They need to come down to EARTH now.

[@Landis_Grant]

If condo prices aren’t lowered substantially, potential purchasers won’t bite even in Toronto and Vancouver.

[@edwardlenovo3240]

I continually watch a lot of real estate listings and day dream about the 1 bedroom condo I can afford only with a lottery ticket. Prices are going down, but slowly. People are just expecting larger prices drops that would match the insane rises that have occured (particularly in the last 10 years).

[@TheChez1985]

they never designed these to live in, let em sit

[@dirtyburger7528]

LTB issues play a roll in this too

[@TomStorey]

100%

[@andygrenn680]

Money is not here like before…Money is not here anymore. Never really was no reason just because…

[@marshferguson4737]

People just need to realize that high prices are not going to stay. People are starving and cant pay bills. We cant save a down-payment while paying $2500 a month.

[@DummMoney-rr1fi]

move a roomie in. that's how i started out. now my assets are worth multiple 7 figures net

[@marshferguson4737]

@DummMoney-rr1fi I have 2 kids....roommates with out kids won't move in 😆 and to many kids fighting sucks!

[@AnnoyinglyCharming]

if you want to rent it out be prepared to lose on average 700 a month carrying costs as the rent wont pay your mortgage and condo fees. but if you can hold on for about 5 years at that loss rate you could get your money back if things go well. Then all you would lose is real estate fees and lawyer fees.

[@vert911]

With every rate cut, that's one more group of active listings that will be delisted. Half the units aren't even priced to sell, sounds like there's no panic. We'll be back to 50% less active listings as soon as rate decreases allow. Simultaneously, preapprovals will increasingly become easier putting upward price pressure on the inventory that remains.

[@benitodelbenito]

Why would you not want to sell something you list? Don't you have to pay a bit to get it up and listed?

[@vert911]

@@benitodelbenito the agent pays out of pocket i think. but if you have a seller client who insists on a price, it is what it is.

[@GreenBeanGreenBean]

@@benitodelbenito very little cost to put it on MLS and market it....... what costs a bunch is if you renovate and stage it.......which only a fraction of people do.

[@DummMoney-rr1fi]

@@GreenBeanGreenBean vert and green bean for next weeks guests on TTSS

[@marshferguson4737]

My niece is 28 has 2 kids they make 120k a yeear. They were approved for 350k.

[@Canadian_Eh_I]

Canada $krewed our young so bad with housing

[@marshferguson4737]

@Canadian_Eh_I people who are buying must be investors or second home owners or have help from their parents. No way first time buyers are getting in the market!! The ones that have to work hard anyway

[@DummMoney-rr1fi]

need bank of mom and dad to pitch in. I'll loan her money at10%

[@doinitforfun888]

I would go back with an amendment and ask the sellers for a lower price based on comparables. If the sellers has bought another property potentially they will listen.

[@NovaIslandAdventures]

I wondering if corporations who are buying up swaths of single family homes, only to rent them for profits shouldn’t be allowed. Maybe just maybe this condo market will manufacture some “affordability”. We shall see.!

[@webrbio3153]

Condo investment Holdlrs will get rekt. Just keep on holding and find out fools.

[@dakshathan1547]

All Condos are shoe boxes, nobody can live happily. So nobody buy Condos, people who bought as investment will have to make Canadian Banks wealthy😂

[@manojverma2616]

Ha ha you are funny, I am trying to sell 2 houses of mine both offering a loss of nearly 100,000

[@huntercallan1458]

Would it help if they got rid of, or lowered the stress test?

[@edwardlenovo3240]

So people can over leverage themselves and take on more debt?

[@jay1645]

Minsky moment has been on the horizon for at least 10 years but not yet lol .. need some more investor debt/income ratios to go up lol took a decade or so in China too

[@redeye1773]

dog house has betrer building materials

[@JonnyZuccs]

I cant wait for the future videos: "Toronto condos down 5% last month.......Toronto condos down 8% last month. Coming to a neighborhood near you.

[@vert911]

irrelevant stats if only 10% the number of transactions are happening vs. peak, and the quality of the inventory is skewed because its a billion tiny shoebox studios and 1bdr with horrible layouts

[@benitodelbenito]

@@vert911 Yeah, the data is going to look way worse than it actually is if investors are selling the shit-boxes they planned to rent out for positive cashflow.

[@kevinheise7]

Princes of the Yen

[@michaelmcdonald1176]

People think about it. 600 sq ft a garage basically for 600k and 1000 a month maintenance fees . You live in a apartment but pay 600k for the right then loose your shirt trying to dump it. Just r 4:22 ent a apartment no bs and move when ever. Condo is the big sucker deals now

[@John-bq9jh]

I think these condo sellers believe that the past few years is the new paradigm and once rates drop a quarter point this summer all the pentup demand are going to rush in and drive prices back if not more. lol. What idiot the sellers are. lol again

[@glass8289]

Interest rates are 20 year high as per the so called experts. then prices also be 20 years back. that's how free market economy works, Isn't it?

[@TomStorey]

Housing market is influenced by more than just interest rates. supply, population growth and overall inflation also play significant roles. That's why prices don't necessarily revert to past levels when rates rise.

[@glass8289]

@@TomStoreyFully Agree. Also artificial government constraints at local levels.

[@howy3333]

The beauty of condos is that sellers always have the option of renting them out instead (assuming that their vacant)

[@heavyrocker58]

Greed is Good.

[@randyhuke3773]

Greed !!!!

[@DummMoney-rr1fi]

Math!!!!!

[@twiston43]

Let's see how the kids of those rich Boomer investors are going to deal with their portfolios...

[@cortezranieri]

Condo crash coming? 🥶

[@TomStorey]

Everything is always crashing 🥶

[@DummMoney-rr1fi]

@@TomStorey Just ask Bill Ferguson.

[@scottlindsay856]

I like your name and your video. Cool Cool

[@ppcbernier9945]

Sellers have yet to realize that they bought at a ridiculous top 😂

[@Plumber60423]

In 2034. You will miss 2024 prices

[@dakshathan1547]

All Condos are shoe boxes, nobody can live happily. So nobody buy Condos, people who bought as investment will have to make Canadian Banks wealthy😂

[@chappy24]

yeah the banks are going to clean up. Its all a play to get everyone renting. You own nothing and you will be happy. Blackstone needs to keep buying properties back, raise property taxes etc making it impossible to make good coin off of renting out a property. A lot of the projects in receivership are going to be taken over by Blackstone. There goal is to have everyone renting. In order to do so they have to make it hard to buy and hard to sell, and hard for investors to make money off of the properties