Toronto New Condo Prices Plunge for First Time in Decades

[@randomstuffman01]

Thanks.

[@parkerbohnn]

I live in Markham and no one has ever questioned the price of a new build. They just pay the price no matter what the price is. Soon Markham will overtake Toronto with the highest rents in all of Ontario.

[@CallumMoorekw]

Plunge!! 😄 2.2%...And it's not even that. Gotta come here for the real info. Great vid Jordan!

[@rustyscrapper]

Condos in fort mcmurray AB fell 60% from 2013 to 2019. The rest of canada is not aware this happened.

[@Kadmos]

Good, build more in Newmarket, Aurora, Richmond Hill. We don't need everyone living in the GTA.

[@vert911]

that's where the jobs and infrastructure are. Nobody moves to canada with dreams of living in Aurora.

[@James09291]

@@vert911what’s wrong with Aurora??

[@vert911]

@@James09291 for an immigrant family, compared to the big city, there is no jobs, schools, or infrastructure

[@James09291]

@@vert911 stop the immigration then things are going to calm down

[@Slickpete83]

*only thing we will hit is 1.5 million rooms with no widows in damp old basement apartments with 3 shared mattresses on the floor in 1 room* hahahaha...

[@vert911]

not if the government keeps making life hell for landlords.

[@vert911]

This is a market adjustment, and nothing more. Builders have been overpricing their units for a decade, to attempt to match the value of the unit when its finally completed 4 years from then. They justify this by pointing at the rapid increases we've seen in the past. These increases are now stalled due to world events, so builders need to lower their price to a more appropriate level. That's it.

[@Precondo]

Yeah that’s not how it works at all

[@vert911]

@@Precondo ok, explain why I'm wrong.

[@Precondo]

@@vert911 I have multiple videos on my channel that explain how projects are priced “What the value will be in 4 years” isn’t how a developer prices

[@vert911]

@@Precondo Yes I know it's more complicated than that. There are many factors that go into it, I agree. But don't tell me the projected value of what a unit will be worth after closing isn't a factor.

[@BeatTheD3viL]

Price fell by 2%, HOA increased by 50% It's just car dealership model

[@quixomega]

Oh boy, some people are going to be in trouble on those assignment sales, those only make sense if prices are on the rise.

[@rogue-gal]

Great update Jordan! What should a 20 year old building in 905-Milton, Burlington, Oakville be worth per square foot now relative to pre-construction? How do you go about evaluating it? Is it 1/2? Is it 2/3 of nearby brand new unit ? As an example if a new unit-move in ready of a builder’s inventory condo’s is $1000 a sq in 905, what should be the resale cost of a nearby building that’s 20 years old be? Eg at 2/3 evaluation of that new unit that’s about 667$ a sq ft; at 1/2 that’s $500 a sq ft etc… what are your thoughts?

[@Precondo]

There's no way to make a comparison between a 20 year old building and a brand new one, unfortunately. 20 year building vs a nearby 20 year building will have massive PSF swings themselves.

[@hongchen3989]

such a dilemma, higher fees, higher price, less buyer, more default, further from goal, regulators are doing a good job?

[@adk4419]

Great information. Thanks.

[@rustyscrapper]

Spoiler: condos will lose the most value in a crash because the condo fees stay the same or go higher so the mortgage portion of the cost of a condo has to fall by a greater amount then freehold units.

[@Precondo]

probably not considering the price ratio of detached:condo is extended beyond historical mean by more than it's ever been

[@Slickpete83]

*you know times are tough in Canada when Trudeau's wife is having a hard time qualifying for a mortgage after her separation from Trudeau* 😅🤣😂

[@parkerbohnn]

I've seen lawyers and doctors turned down for a mortgage.

[@matthewjames1172]

time for realtors to find a new job. gravy train is over. EPIC housing bust incoming.

[@bathtubrenew]

All condo development is dependent on “investors”, when the market goes flat and or turns down (and it will), there will be no “investors” limit up to buy. Projects will stop and as it turns down even more, it will get worse, get ready, it’s coming.

[@afzalshaikh2128]

Better dwelling has been waiting for these headlines for the last decade 😂

[@Mehmed317]

So Jordan will eventually the demand in 905 region hit $1400 square feet mark which will then impact and push the price in 416 region higher?

[@DrDrae81]

Should have invested in the S&P 500 instead! Way better returns at significantly less cost

[@Precondo]

Leverage

[@DrDrae81]

Yes there are leveraged etfs too!

[@parkerbohnn]

Ponzi's can go on for a long time but the perpetrators of the ponzi or the ones who run the ponzi will always be out first. In Iceland they jailed all the bankers for the same thing the American bankers have been pulling all long. Bernie Madoff looks like a saint compared to the criminal American bankers who rig and manipulate the U.S. stock market. When a ponzi finally ends by definition 95 percent of al the participants in the ponzi lose everything. Currently the Schiller P/E is higher today than it was during the summer of 1929.

[@rdefacendis]

Journalist language? You are quoting BlogTo…. You are quoting a blog…. If you are going to crap on editorial engineered headlines…. Pick one that employs actual journalists…. You know like The Globe, CBC, National Post…

[@Precondo]

There’s no such thing as actual journalists anymore, youtube is the news now

[@thecanadianrealestateshow]

Plunge. Hahaha. What are they getting in Georgetown now.?theres your plunge

[@citizenm9590]

This is just the start i lived in US during last house crash froom 2008 it took until 2012 for price to bottom out. People realestae is lagging indicator this is just start by 2025 we should get close to bottom of realestae in Canada

[@vert911]

through the years of pandemic and now years of the highest interest rates to household debt ratio, still the YoY price is up in most areas. So it hasn't even started to come down, yet you seem to think the bottom will be 2025? You have it backwards, 2025 will be the new PEAK. Rates will be down by then, Liberals will be trying to look like heroes to buy votes, life will be fantastic for Canadians in 2025. Nobody will vote liberal if they are in the process of seeing the equity in their home vanish under the current sitting government. USE YOUR HEAD PLEASE.

[@danca5719]

Lol, the wettest wishes coming from someone who has no idea of the difference between US house market in 2008 and Canadian house market in 2023 to 2024….before 2008 even a dog can get a mortgage and buy a house, that is how bad US house market is. But Canada is different. Sorry.

[@francisa9896]

You are using the same bait and switch title, not cool buddy.😢😢😢

[@raymondspencer3332]

Second hand Condos in Halifax are around $440 per square foot. Also important to point out what condo fees are as new condos tend to be low and unrealistic while older units are a reflection of reality.

[@parkerbohnn]

Resale low rise apartments in Edmonton or stacked townhouses were selling for around 65 dollars a square foot a couple of months ago at Country Club Estate about two miles from West Edmonton Mall. The same places sold for about exactly 65 dollars a square foot back in 1990.