Filter by Categories
All Condos
Ask Andrew
Insights
New Condos by City
Ajax
Aurora
Barrie
Beamsville
Belleville
Bolton
Bowmanville
Bracebridge
Bradford
Brampton
Brantford
Burlington
Caledon
Calgary
Cambridge
Collingwood
Creemore
Dundalk
Georgetown
Halton Hills
Hamilton
Innisfil
Kawartha Lakes
Kingston
Kitchener
London
Markham
Thornhill
Milton
Mississauga
Cooksville
Mineola
Port Credit
Square One
Montreal
Napanee
Newmarket
Niagara Falls
Oakville
Oshawa
Ottawa
Peterborough
Pickering
Richmond Hill
Smithville
St. Catherines
Stayner
The Blue Mountains
Toronto
Amesbury
Baldwin Village
Bayview Village
Beaches
Bedford Park
Birchcliffe-Cliffside
Bloorcourt
Briar Hill
Brockton Village
Cabbagetown
Canary District
Casa Loma
Chinatown
Church & Carlton
Church & Wellesley
Church St. Corridor
Clanton Park
Corktown
Corso Italia
Danforth Village
Davenport
Davisville Village
Distillery District
Don Mills
Downsview
Downtown
East Junction
East York
Eglinton East
Eglinton West
Entertainment District
Eringate
Etobicoke
Fallingbrook
Fashion District
Financial District
Flemingdon Park
Forest Hill
Garden District
Greektown
Harbourfront
High Park
Hoggs Hollow
Junction Triangle
Kensington Market
King East
King West
Lansing
Leaside
Leslieville
Liberty Village
Little Italy
Little Portugal
Long Branch
Mimico
Moss Park
Mount Pleasant Village
Newtonbrook
Niagara
North York
Oakridge
Old Town
Ottawa
Parkdale
Regent Park
River District
Rosedale
Rustic
Scarborough
St. Clair West
St. James Town
St. Lawrence
Stockyards
Summerhill
Swansea
Tam O'Shanter-Sullivan
The Annex
The Junction
The Kingsway
The Queensway
Trinity Bellwoods
Victoria Park Village
Wallace Emerson
Waterfront
West Rouge
Weston
Willowdale
Yonge & Bloor
Yonge and College
Yonge and Dundas
Yonge and Eglinton
Yonge and Finch
Yonge and Lawrence
Yonge and Richmond
Yonge and Sheppard
Yonge and St. Clair
York Mills
Yorkdale
Yorkville
Uxbridge
Vaughan
Maple
Thornhill
Woodbridge
Waterloo
Welland
Whitby
Whitechurch-Stouffville
New Condos by Deposit
10% Before Occupancy
15% Before Occupany
20% Before Occupancy
5% Before Occupancy
New Condos by Developer
16th Avenue Development
Ace Development Ltd
Acorn Developments
Addington Developments
Adi Development Group
Allegra Homes
Alterra Developments
Altree Developments
Amacon
Amalfi Homes
Amexon Development
AMICO
Andrin Homes
Angil Development
Aoyuan International
Aragon Properties Ltd
Armour Heights Developments
Artlife Developments
Arya Corporation
Ashcroft Homes
Aspen Ridge Homes
Baif
Balder Corporation
Ballymore Homes
Bazis Inc
Benvenuto Group
Biddington Homes
Blackdoor Development Company
Block Developments
Bloomfield Homes
Branthaven Homes
Briarwood Development Group
Brixen Developments
Broccolini
Brookfield Residential
BSäR
Burnac
Cachet Homes
Caivan Communities
Camrost-Felcorp
Canderel Residential
Canlight Realty Corp
Capital Developments
Capital North Communities
Carlyle Communities
Carriage Gate Homes
Carttera Private Equities
Castlebridge Development Group
Castleridge Homes
Castleview Developments
CentreCourt
Centrestone Urban Developments Inc
Centreville Homes
Chestnut Hill Developments
Choice Properties REIT
Choo Communities
Cityscape Development Corporation
Cityzen
Claireville Holdings Limited
Cliffside Homes
Clifton Blake
Coletara Development
Collecdev
Concert Properties
Concord Adex
Condoman Developments Inc
Conservatory Group
Constantine Enterprises Inc.
Consulate Development Group
Context
Core Development Group
Cortel Group
CountryWide Homes
Craft Development
Creek Village Inc.
Cresford Developments
Crown Communities
Crystal Homes
CTN Developments
Curated Properties
Cystal Glen Homes
Daniels
Davpart
DBS Developments
DC&F Corp
Devron
Dez Capital
Diamante Development
Diamond Kilmer Developments
Diamondcorp
Dicenzo Homes
Distrikt Developments
Doornekamp Construction Ltd
Dormer Homes
Downing Street Group
Dream Unlimited Corp
Dundee Kilmer
DVLP Property Group
Eden Oak
Edenshaw
ELAD Canada
EllisDon Capital
Emblem Developments
Empire Communities
Evans Planning Inc
Evertrust Development
Evertrust Development Group Canada
Fengate
Fernbrook Homes
Fieldgate Urban
Fiera Real Estate
Fifth Avenue Homes
Firmland Development Corporation
First Avenue Properties
First Capital
Flato Developments
Forest Green Homes
Forest Hill Homes
FRAM + Slokker
Freed
G Group Developments
Gairloch
Gary Silverberg
Gemterra Developments Corporation
Genesis Homes
Georgian International
Geranium
Globizen Developments
Gordon Wells Ltd.
Granite Homes
Graywood
Great Gulf
Greatwise Developments
Greenfield Quality Builders
Greenland Group
Greenpark Group
Greenwin
Greybrook Realty
Guglietti Brothers
H&W Developments
Hans Group
Harhay Developments
Harlo Capital
Haven Developments
Hazelview Properties
Heathwood
Hi-Rise (West) Inc.
Homes by DeSantis
Hullmark
Hyde Park Homes
i2 Developments
Icon Homes
iKORE Developments Ltd
IN8 Developments
Investissement SM Immobilier
Ironwood Bay
JCF Capital
JD Development Group
KAD Development Group
Kaitlin Corporation
Kaleido Corporation
Kalovida Canada Inc
Kaneff Corporation
KBIJ Corporation
Kilmer Group
Kingdom Development
KingSett Capital
Knighstone Capital
Knightstone Capital
Kroonenberg Group
Kultura
La Pue International
Lakeview Development Holdings Inc
Lalu Canada
Lamb Developments
Lancaster Homes
Lanterra
Lash Group of Companies
Latch Developments
Laurier Homes
LCH Developments
Les Entreprises QMD
Liberty Development
Liberty Hamlet Inc
Lifestyle Custom Homes
Lifetime Developments
Limen
Lindvest
LJM Developments
Lormel Homes
Madison Group
Malibu Investments
Manorgate Homes
Mansouri Living
Marlin Spring Developments
Marydel Homes
Matrix Development Group
Mattamy Homes
Mayfair Homes
MDM Developments
Medallion Capital Group
Menkes
Metropia
Metroview
Minto
Mizrahi Developments
MOD Developments
Monde Development Group
Mutual Developments
Nahid Corp
Nascent Developments
National Homes
New Horizon Development Group
Newgard Development Group
Nexus
NOCO Development Company
Norstar Group of Companies
North American Development Group
North Drive
North Edge Properties
Northam Realty Advisors
Northrop Development
Nova Ridge Development Partners
NYX Capital
Old Stonehenge
ONE Properties
One Urban
Options Development
Originate Developments
Oxford Properties
Parallax Development Corporation
Patry Inc Developments
Pemberton Group
Phantom
Phelps Homes
Pinnacle International
Platinum Vista
Plaza
Plaza Partners
Podium Developments
Presidential Group
Primont Homes
Profile Developments Inc
ProWinko
Quadcam Development Group
QuadReal
Queensgate Homes
RAJACan Developments Inc.
ReBuilt Construction
Reids Heritage Homes
Republic Developments
Reserve
Residences at Bluffers Park
RioCan
Rise Developments
Riverking Developments
Rivermill Homes
Rogers Real Estate Development
Rosehaven Homes
Rosewater Developments
Rowntree Enterprises
Royalpark Homes
Royalton Homes
Sag Development Corp
Sage Development Corp
Sapphire Construction of Niagara
Saxon Developments
Scholar Properties Ltd
Sequoia Grove Homes
Seven Numbers Development
Sherwood Homes
Shiplake Properties Limited
Sierra Building Group
SilverCreek Communities
Sina Development Inc
Skale Developments
SkyHomes Corporation
Slate
SmartCentres
Solmar Development Group
Solotex Corporation
Spallacci Homes
St. Regis Homes
St. Thomas Developments
Stafford Homes
State Building Group
Sterling Group
Sundance Homes
Sunny Communities
Sunrise Gate Homes
Sutherland Developments
TAS
Tercot Communities
The Brown Group of Companies
The Goldman Group
The Gupta Group
The Hi-Rise Group
The Remington Group
The Rockport Group
The Rose Corporation
The Sher Corporation
Tiffany Park Homes
Times Group Corp
Townwood Homes
Treasure Hill
Tribute Communities
Tricar
Tricon Developments
Tridel
Trinity Development Group
Triumphant Group
Trolleybus Urban Development Inc
Trulife Developments
TVM Group
United Lands
UrbanCapital
Urbane Communities
Valery Homes
VANDYK
VanMar Developments
Venetian Development Group
Vermilion Developments
Vintage Park Homes
Wabash Heights Developments Inc
Westbank Corp
Westbank Corp. and Allied Properties
Westdale
Woodcastle Homes
WP Development Inc
York Trafalgar Homes
Yorkwood Homes
Zancor Homes
New Condos by Occupancy Year
2019
2020
2021
2022
2023
2024
2025
2026
TBA
News
Podcast
True Condos Approved
Uncategorized
Videos
Filter by content type
Taxonomy terms

Real estate slow down good for the economy?

Rosenberg: Toronto housing slowdown is good for economy

The recent dramatic drop in home sales across the Greater Toronto Area is good for Canada’s economy — and may show the economy is finally moving away from a dependence on the real estate sector, according to Gluskin Sheff Chief Economist David Rosenberg.

Ontario mortgage arrears at pre-‘90s-crash levels—report

Late payments of mortgages in Ontario have declined to their levels back in 1990, just before the real estate crash that led to a massive growth in the number of delinquencies.

New condo supply falls to 15-year low

Urbanation, the authority on the Greater Toronto Area’s (GTA) new condo market statistics, released its second quarter 2017 (Q2-2017) report, announcing that the new condo market is still surging as the resale condo market moderates. Also, new condo supply has fallen despite record high launches.

Buyer who walked away from real estate deal ordered to pay $360K

Would-be buyer ordered to pay the difference after house ultimately sells for 28% less

You can walk away from your mortgage (if you live in Alberta), but should you?

Handing over the keys to the house and walking away from your mortgage, called ‘jingle mail,’ was a defining act of the American housing crisis. The problem is it can happen here, namely in Saskatchewan and Alberta

TRANSCRIPT

Andrew La Fleur: Today is Tuesday, August the 15th, and this is what’s happening in the condo market this week. Thanks for checking out this video once again. If you like these videos, if you like these podcasts that you’ve been getting from me, if you can go ahead and share it, if you can leave a review on iTunes, if you can hit send and send it to somebody else that you know, or share on Facebook, or like on Facebook, that would be great. It really helps to get the word out about these shows, and these videos, and these podcasts. Helps other people get access to the information, as well.

As we jump into the first article for this week, it is from BNN. It’s an interview, a video interview, and an article with David Rosenberg. He’s an economist, senior chief economist. The headline says “Toronto Housing Slowdown is Good for the Economy.” This is sort of a contrarian headline and catched a lot of people maybe by surprise this week.

The point is, it’s valid. It’s something that we’ve talked about on this show a lot, is this idea that the slowdown that we’re seeing in the low-rise housing market … Again, condo market is very different. Condo market hasn’t really changed much at all. It’s still at all-time highs, and prices are still rising very rapidly. Supply is still very low in the condo market, but in the low-rise housing market, it’s obviously slowed down a lot over the past few months.

The news here, again, and what we’ve been hitting home on is it’s a returning to normal. We’re going back to a more normal place to be, and that’s a good thing. This is, again, something that Rosenberg is also hitting on, where we hear some of the quotes from the article. Yeah, again, just basically talking about how it is coming back to more of a normal level, and the unsustainable rises were not a good thing, and we should be happy that things are in fact going down to what is a more sustainable market. He’s making it very clear he doesn’t think that the market is crashing, is spiraling, is going to go down with any significance. It’s just a market that’s correcting itself. After having gone up a lot, it’s now coming down.

The next article that I wanted to bring to your attention is … You might have caught this. It was actually from a couple weeks back, but some statistics came out about the mortgage arrears, people who are late on their mortgage payments, in Ontario. They’re basically at the lowest levels, mortgage arrears, people late on their payments, are at the lowest levels they’ve been in 27 years, 27 years. Again, this is another indicator of the health and the strength of the market, the fundamental structure to the market.

Are we in a bubble or not? This is one of the things that you should always look at is, are people late on their payments? Are we witnessing anything like what we saw in the US in the run-up to their major housing crash, where mortgage delinquency rates soared. We’re not. In fact, we’re seeing the opposite. Mortgage arrears are at 27-year lows. This is the lowest of all the years they have on record of tracking this. This is the lowest number they’ve ever seen.

The number is 0.11%, so roughly a tenth of a percent. One out of 1,000 mortgage holders in Ontario are behind on their mortgage payments. One out of 1,000, so if you look at your neighborhood, if there’s 1,000 homes in your neighborhood, one person maybe is in arrears. Again, at the peak of the US crash in some of these really terrible areas and terrible neighborhoods, where things were going down really quickly, that number was into double digits, 10%, 15%, 20%. This is a tiny, tiny fraction of that sort of a number, and all indications are it’s been flat. It’s been flat for a number of years, so that is good news, and again, it speaks to the strength of our mortgage market in Ontario.

Next article, new condo supply falls to 15-year low. This is from the Neumann Homes’ blog. Again, this is from Urbanation data, Urbanation data for the second quarter, which they put out in the past week or two. This is another headline I want to make sure you see and understand. This 15-year low, so out of … Where are we here? Out of 110,000 … Where is it here? Sorry, bear with me, 110,000 active units in the greater Toronto area, 94% of them are sold, leaving an unsold inventory of just 6,700 homes. This is the lowest new condo supply there has been in 15 years and equals to two months of supply. This is, again, the lowest level in 15 years. Inventory supply levels are at an incredible low point for condos in the GTA.

A big reason for that, on the one hand, is that there has been such a high volume of sales in the past 12 months. Roughly around, I think, 35,000 units or so, sold in the past 12 months, which is higher than the typical average of around 20,000, 25,000 units. Sales are up. Prices are obviously up. New projects are coming out, but they can’t keep up with the demand. New projects come out, they sell out right away. If you’re a buyer out there looking to buy something right now, as I talk to buyers every single day, it’s very hard. There’s not a lot of choices to choose from.

A year, two years ago, if you came to me and said, “Andrew, I’m looking for a great condo investment. What have you got for me?” I’d easily lay out to you three, four, five good options that you could choose from immediately. Right now, that number is, as of today, recording this podcast, is basically zero. We are waiting for new product to come onto the market that is a good opportunity for investors to get into. I have some great stuff coming this fall, but right now, there’s very slim pickings, especially in the downtown core. That is the condo market right now.

The next article, buyer who walked away from real estate deal ordered to pay $360,000, would-be buyer ordered to pay the difference after house ultimately sells for 28% less. This is from out in Surrey, BC. Somebody entered into a contract to purchase a property for $1.26 million. This was a year ago at the height of their market, before their foreign buyer tax came in. The foreign buyer tax came in, market slowed down significantly. The buyer got scared. The buyer backed out of the deal. They did not close on the deal, so the sellers ended up putting the property back on the market and selling it for $360,000 less than that price, many months later. Now they went to court. Obviously they sued, and they have to pay the difference.

This is a very important learning point for every real estate investor, or anybody involved with real estate in Canada, is to understand this concept that a contract is a contract. If you enter into a contract to purchase, you must follow through on that. There’s no walking away, there’s no … A lot of people have this misconception that, “You can just keep my deposit, and I’ll just walk away, and we’ll call it even. Shake on it, see you later.” That’s not how it works. A contract is a contract. You are obligated to pay that price. If that price is not paid by you, then the seller is open to sell it to someone else, and you, the original buyer, have to pay damages. You have to make them whole. You have to make them come up to the amount that they would’ve received if you had to close on your deal. That’s something a lot of people don’t understand and seem to take for granted.

This buyer obviously got some very bad advice, and they decided to talk away from this. Interesting enough, now that the market in BC has rebounded, if they had to have just stayed in that deal and closed on it, and then just simply sold the property today, they probably would’ve been much, much better off. Maybe they wouldn’t have come up all the way to the price they paid, but they certainly wouldn’t be out $360,000. It might be … I don’t know what the number is. We can look into it, but I’m sure it’d be much, much less than $360,000, as the market has rebounded. They got cold feet. They thought the market was going to tank. The market didn’t tank. The market slowed down for a little bit, and now the market is flying again.

And finally, this tying into the articles about the mortgage arrears and walking away from your contract, another difference between Canada and the US, which is important to understand, is this idea of non-recourse versus recourse mortgages. A big problem in the US with the crash there, they had these non-recourse mortgages, where a lot of buyers were simply walking away from their houses. They stopped making mortgage payments. Mortgage arrears, we talked about that. They just simply walked away, “Okay bank, you can have the place. It’s yours. I’m out of here” kind of thing. A lot of the states in the US, Florida and others, you could do that.

Pretty much everywhere in Canada, with the exception of Alberta, and I’ll include a link to this article here, which is from a couple years back, but it’s great in explaining recourse versus non-recourse mortgages, how they work, how you can do it in Alberta under certain conditions, but you can’t do it obviously in Ontario. You can’t simply walk away from your mortgage. It’s another reason why our market is fundamentally strong, why our lending system is fundamentally different from what’s gone on in the US, and why our market is not going to crash in the way that the US market ever did. It’s just simply not going to happen, and those people who think that this is our time, just like it was in the US, are completely and totally misinformed.

Okay, I hope you enjoyed this video. Check out the links that I sent you here. Until next time, have a great week, and happy investing.

Tags