If you have been reading this blog and following the Toronto condo market for any length of time you know that sales are up, prices are up and generally everyone is feeling and acting very bullish on the market right now. Traditionally, this time of year is when the market starts to slow down and go into hibernation for the winter. I don’t see that happening anytime soon. If anything, the market is actually gaining momentum going into the winter months.
Some quick thoughts on the resale market:
- Inventory levels are still dramatically lower than any other time in the last several years
- Sales are up dramatically over this time last year, but remember that this time last year was when the market began to tank. Still, sales are at all time highs
- Buyers are falling into the trap of over-paying for condos because there is nothing else to choose from on the market when they are buying. Be patient! Keep your head on straight in multiple offer scenarios.
- New pricing precedents are being set in buildings all over downtown as a result of this inventory shortage and buyer behaviour.
Some quick thoughts on the new condo market:
- Over the next 6 months I expect to see at least half a dozen major new condo launches – X2, River City (West Don Lands Phase 1), DNA3, Number One Bloor, ICE 2 (already underway), U Condos Tower 2 (already underway), and more!
- Line ups and camping out for weeks will once again become commonplace as buyers rush in to invest in this next wave of development in Toronto
- Buyers need to keep their heads on and compare existing projects’ remaining inventory with these ‘new’, ‘flavour-of-the-month’ condo projects. Just because it’s new, doesn’t make it better than the building next door that is 90% sold out. BUY VALUE!
Some of you might write this off as more drivel from a real estate agent / blogger-hack who is just doing his part to artificially inflate the market, but my loyal readers know that I tell it like it is. Questions? Thoughts? Leave a comment or contact me direct.
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November 9th, 2009 at 5:30 pm
As always, a great post by La Fleur.
Projects are already starting to sell out to brokers prior to launches, and lineups around the block are starting to occur – again – at multiple projects.
Great predictions – and as mentioned in his article, Andrew is not the type to try and artificially inflate the market.
Yikes. Scary thought about people waiting in line-ups for weeks upon weeks.
BuzzBuzzHome‘s favourite comment “Buyers need to keep their heads on and compare existing projects’ remaining inventory with these ‘new’, ‘flavour-of-the-month’ condo projects.” Well said. Bravo!
November 9th, 2009 at 5:52 pm
And next week you’ll be telling us how all these people are defaulting on their mortgages.
All you have is cheap money driving up prices…if I remember correctly, this method caused a crash south of the border recently 
I think the gist of it is to spend within your means and not expect housing prices to double again in 3 years.
November 9th, 2009 at 10:13 pm
I agree with you, Andrew, I think the market is starting to get over-heated now because of the low inventory and the low interest rates. It was hot hot hot during the summer and early fall, but buyers could still find some decent deals back then in both resale and new condo markets. But it is really over-heated now that winter is coming soon. It is probably too late to jump in the market, and people who buy now are just over-paying!
But there is no bubble yet, I’m pretty sure of that! Just some “suckers” who jump into the trend too late, and over-pay just to get a piece of it.
November 18th, 2009 at 10:32 am
Are you kidding me!!!! Anyone buying in this market is an absolute idiot!!! Look forward to future defaults when rates re-set higher – by the way, since they are currently so low, there is now only one way for them to go.
But feel free to get caught up in all the hysteria. I’ll wait it out a couple years and buy your foreclosed property at a 40% discount of what you’re buying it for now.