Toronto Real Estate: I’ve Never Seen This 📉

[@aldenhagel5082]

How is it weird. Toronto is way over-priced. People are losing their jobs and leaving Toronto. The cuts will be too little too late.

[@vert911]

Thats strange. I'm seeing that C1 condos in Toronto have only gone up in value since Feb 2024. But this is where all the investor units are.... hmmmmm..... it IS weird ... ;)

[@vert911]

I just noticed C8 is up wayyyyy more.

[@alexg9727]

@@vert911 fake news

[@alexg9727]

@@vert911 You may think that but look at your now 1500 dollar condo fee. That alone is the reason they will not sell

[@vert911]

@@alexg9727 where you getting that from? Condo fees come down to two things, inflation and proper condo board management. My above average sized unit has fees below what you say, in a pretty old building. Fees have gone up single digit percentages for a decade. Sure, mismanaged buildings get hit, but this is why it's important to study the status certificate and reserve fund when making a purchase. You generalize way too far. Keep renting bud. I got a great unit for you, 5k/mo. Ask nicely and you can rent it from me.

[@Chris-se3nc]

History has shown that the number of defaults climbs after the first rate cute. It took awhile from the first rate increase to get to the silent boil everyone with a mortgage renewal is feeling. It is not going away with one measly rate cut. Also if they were waiting to get a potentially higher price from buyers because of a rate cut, the flood of listings will only accelerate the price cuts. Especially as more desperate sellers come onto the market - it only takes a couple to reset lower for the next seller. 2025 is the bloodbath mortgage renewal year. prices lower then

[@TomStorey]

Seems like everybody saw Ben’s graph. It was well done.

[@eXTreemator]

Ddymp et. And prohibit forever

[@don-cw1yz]

Since Jan 2024 the Federal govt. has injected $30 Billion into the Repo Market. This makes cash available to Canadian banks as a source of short-term borrowing.

[@madankt]

I have seen 3 recessions in US since 2000. The real estate bubble for them got busted in 2008-2011 caused the Lehman Brothers and several other financial institutions to crumble in Wall Street bringing down US to the knees. US then had the luxury to print their currency since they were dictating terms due to Petro dollar. They can't do it anymore. Take Canada we are in exact trend like in Big Short...we are inflating economy artificially through house prices...there is not true GDP increase so far. If we don't change our policies now and stop being greedy, there is no sign for this economy to recover in next 20 yrs

[@Jonnyrockin71]

I have a condo shoebox prediction. The developers built far too many shoe boxes. I see a total crash in prices of these units. Enough so that buyers could snap up clusters in line and row, and just knock down walls and convert to family sized units. But the price has to drop to around $200k. So 4 units in a row would be $800k. $250/$350 in gut renovation and you have a lovely inner city family sized apartment.

[@JoeSiegfried]

I used to do real estate, I was thinking the same thing the other day.

[@riccyrolo]

Will never happen..... inflation and building costs will hold prices. Also, there's a bunch of buyers and speculators wuth deep pockets waiting on the sidelines.

[@leeraewi]

I think the issue might be condo fees. I don't know enough about how they are negotiated, but I know of a building in Calgary where units have been consolidated to make larger units and it makes the monthly condo fees very prohibitive, as you are not paying for a larger space but for two condos.

[@Jonnyrockin71]

​@@leeraewi Condo Fees can be linked back to both insurance and management. The condo board is filled with incompetent people who come into this position of building financial power without any experience or biases. On top of that, older buildings, and older 20 years or more, have build issues like plumbing configuration and materials. Copper pipes fail, and depending on how the pipes are run through the building is a cost of replacement factor. Vancouver-approved stainless steel pipes, even though they are more expensive, don't fail. Yes, condo fees and insurance are significant risks. However, good management can also be controlled.

[@bodhisattva6308]

Intersting. How about price drops till investors balance roi to price. That is more natural isn’t it.

[@MeMe-cz6pk]

Its peaked. Investors are pulling out. They made their money, they want out. The frenzie wearing off.

[@good2goskee]

if a recession hits or there is financial trauma, people do not come... (see early 90s), RE drops. If these conditions happen in Vancouver where cost of living is way way way out of wack with renewal interest rates at 2.5 to 3x vs when they got in, there will FOMO on selling out

[@stephenn88]

It is a blood bath

[@rorythomson3439]

The fact that a million dollar delta exists between average condo and average house tells me the floor price for livable condos isnt that far away.

[@Xander71267]

lmao h

[@Precondo]

big fan of the stache

[@CorporateShill66]

Based on Housesigma, the difference between a detached and a condo in Toronto is $1.21M

[@jaytailor9312]

Rate cut thats a problem, house pricee never going to go down.

[@masterphotog4131]

Thanks for a great video, keep up the good work!

[@theiqbalsingh]

Only 10% Investors-High-Income Earners can play in this Market....No Average Income Family can or will be able to Afford these prices....Bubble is about to burst and 1 Million property is going to be 500k...Lots of people are going to be bankrupt...People playing Equity-Equity will see their Equity disappearing - Abra-ka-Dabra...!! Stock Market-banks -abra-ka-dabra

[@butwhytharum]

Sure you can afford it just pull some white collar fraud.

[@Lifeisapartydresslikeit]

Everyone would lose their home. Do you just say nonsense?? You heard Trudeau right? Housing is not going down to $500,000 keep dreaming

[@robocop581]

I bet you say that every year

[@ttul]

Suppose I’m a first-time buyer, about to risk my life’s savings and a chunk of my parents’ as well. I see interest rates starting to move down while at the same time listings are becoming more plentiful. Why not just wait until rates are even lower and even more inventory becomes available before making that huge risky purchase? This is how first time buyers are thinking and it’s precisely why they are sitting out the market right now. They won’t come back until sellers capitulate and delist.

[@TomStorey]

The difference between timing the market perfectly vs waiting too long can keep people renting forever. There is no right or wrong. Buy when you feel comfortable and ready. Only buy if you are going to hold that property for a minimum of 5 years.

[@mgsp87]

Why isn't the over supply resulting in lower prices? Does it just take more time for prices to revise??

[@TomStorey]

Inventory levels need to be in the same range for 3-6 months to see real prices changes. If they go up and down every month, not much will change.

[@JohnWoodall-sv8pm]

So all these people able to buy property, in an economy where the majority of people have been screwed out of the market, are upset that they have to sell off they're second investment properties they bought to exploit the airbnb market? Shockingly when you make investments you are not guaranteed a return!!!! That's called an investment!!!!

[@vert911]

But Tom, what about C8 condos YTD? Looks pretty "normal" to me. Is it possible we are going back to "golden nugget" locations go UP, and everything else goes down? Thank you to everyone involved in GTA urban planning and highways who have created the traffic problems. Your incompetence will put money in my pocket. I'm pretty confident if it wasnt for massive investor selloff, C1 could look exactly like C8 YTD. But it has 4x the active listings.

[@madankt]

Change the flipping rules, audit all the buyers account whether their NOA match justify their earnings and they are eligible to borrow from banks and not just somone is paying you rent. Set guideline values for houses and audit all the realtors on the ethics...I might sound offensive but this isnthe reality out there...

[@XEQTIONRZ]

It's a buyer's marker if you want a shoebox.

[@goldguilder9554]

With rate cuts it’s the bottom

[@greatbigworld9683]

In 2008, rate cuts preceded a big downturn.

[@tarawang5466]

@@greatbigworld9683what downturn in 2008??

[@marcuspetlichkovski216]

Hey Tom. I’m looking to buy a condo up to $900 000 in cash. 2 bedroom 2 washroom. For a buyer obviously a condo building that doesn’t allow air bnb, has a good conceriage, good built building and floor plan are important factors in future appreciation. Obviously with the interest rate now many condos have depreciated but looking from 5 -10 years from now what top 5 condos do you think are good to look at if looking to sell in the next 10 years or 15 years. Thanks !

[@marcuspetlichkovski216]

Top 5 condo buildings in midtown or downtown to look at

[@TomStorey]

Midtown: 25 Broadway/30&70 Roehampton, 2181/2191 Yonge. Downtown: 505 Richmond St W, 95 Bathurst, 650 King St W, 75 Portland, 775 King St W/78 Tecumseth.

[@marcuspetlichkovski216]

@@TomStorey Much appreciated!!!

[@howy3333]

worst situation of all is clients upsizing to house from condo

[@waisinglee1509]

Good info, thanks.

[@MysticVoyagerGratitude]

Hi Tom, which one is more walkable and has better rents between area around CN Tour vs ROM? How about the price for a 2 bedroom condo? Thanks.

[@howy3333]

Etobicoke houses by far buyers market strangely

[@michaellanglois8218]

Investor are all pulling money out of the GTA . Nobody pays their rent anymore. Then they’re stuck in this long legal battle, trying to get tenants out of the home they own.

[@highcardjesus7032]

For all of you who lack common sense and may not ever travel outside of the city. Let me remind you that a person like myself who works in construction; Building decks, doing roofs, tile, flooring etc etc is making under 40,000$ per year in my 30s.. Let's do some math in this joke of a country.. In order to EVER own even a box in this province where the average cost of one of those boxes is 900,000$ I would need to work for 24 years straight and never spend a dime on gas, food or anything else.. Every penny I would earn would be tied into a cookie cutter box for the rest of my life. That is the state of this country.! In the gutter.. People talking prime locations in Toronto? What career are people specializing in these days where they earn 900,000$ in a relatively short amount of time? How much debt do these people add up on their credit card and mortgages!? They are the reason this country is in the state it is in to begin with! Debt society where the bank types up random numbers and lends them out at interest...

[@vaelicusthepaladin]

its not the whole country this is mainly the cosmopolitan high end cities, in places like quebec, saskatchewan or the maritimes a middle class person can keep on saving and end up affording a place. Perhaps as you gain experience you earn more and become self employed as the trades are becoming highly DEMANDED. Nobody is forcing anyone to get 1 million + property in Vancouver.

[@Xx-Anwar-xX]

Bying a one million property in a country where bank dont offer any fixed rate mortgages and where the economy is in sharp decline with high interest rates is mental.you buy a house today , after 3 years the bank of canada raise the interest and boom ,now you cant afford paying your mortgage and the bank confiscate your property 😂😂😂😂😂

[@derekcox6531]

Look. Any dude whose first name is “Tiff”….just assume that he started so far ahead of most Canadians that it’s almost ironic that we seem to think he has anything but a disinterested thought about interest rates for Canadians. He’s like our PM….never EVER touching the unwashed masses. Just sayin…

[@adamnarbeaux5898]

I paid 1400/ft for lake views in the heart of the city, and I will be putting 50% down on each!

[@javiersantos4385]

Tom's the man!

[@Poltdrimt]

Hey wanna go dancing 💃 🎶 🙂 let's leave this crap behind

[@bayindir06]

Middle class family cannot support these prices at a sustainable fashion. It is just a math. What will happen is really unpredictable. In a developed democratic country shelter should not be a privilege.

[@Lifeisapartydresslikeit]

Middle class is supporting these prices. Speak for yourself. People are affording it. If you can’t afford you have to rent

[@bayindir06]

@@Lifeisapartydresslikeit how do you know I don’t make good money? Middle class is shrinking, quality of life is going down. Just check defaults on mortgage payments.

[@Lifeisapartydresslikeit]

​​⁠lots of defaults. Like 2%. You realize that right? Is that a lot? The middle class are the ones buying these homes. It’s not the wealthy… so yes people will keep buying real estate at high prices in Canada

[@Lifeisapartydresslikeit]

I agree middle class is shrinking. All I’m saying is people are still buying. Who do you think those people are? They are middle class. Tom Storey just talked about 21 offers or multiple offers on homes in Toronto. Who are those people? They are the middle class going into bidding wars. People need to check their facts. Many do not want to rent and will fight tooth and nail to buy. As soon as the rates come down you will see housing go up. I will come back to this comment in 2025 or 2026 and tell you I told you so

[@bayindir06]

@@LifeisapartydresslikeitOnly time will tell. I guess we just need to wait and see.

[@goldguilder9554]

They need to cut more aggressively to protect the market

[@eXTreemator]

No they don't. Saving of the drowning is in the habds of drowning themselves 🤣

[@good2goskee]

"They" need to leave the rates alone because "They" have created this problem in the first place. "They" should not protect or save people who over-paid stupidly for an asset. To expect me to protect these people with my tax dollars raised through the indirect taxation of inflation (ie Trudy money printing) is as stupid as you paying taxes to save my irresponsible business purchase. Nobody is going to bail me out if I was stupid and went FOMO to buy an over-priced business. Ps.... BoC cutting rates and diverging from the US Fed funds rate will very quickly trash our dollar. It happened 2 days after Tiff-baby cut rates turning our 0.73 to 0.75 dollar into a 0.72 dollar. Cut much more and we will hit 0.65 in no time. Take a look where you buy most of your food and items from. The vast amount of our imports are US which will cost MUCH more with a trash-cash-loonie. That my friend = ugly inflation! Begging for rate cuts is begging for death by inflation poverty for all.

[@baseline6786]

The detached market will take off and it will start to bring condos back up. Putting a floor on condos too.

[@Xander71267]

lmao

[@baseline6786]

@@Xander71267 by 2026 predictions I've seen are prices are back to peak of 2022. We shall see. Doesn't look like it right now. Esp in condos. But only women and investors buy them.

[@CorporateShill66]

Seems those markets are "detached" kek

[@Lifeisapartydresslikeit]

I agree 20000000000%

[@trojanproducttester]

Lol goodluck