Toronto Resale Market Slows; New Developments to Follow?
Interesting article in today’s Globe and Mail about more anecdotal and factual evidence that the Toronto resale market is slowing down.
Agents are starting to see conditional offers more and more, negotiations are actually taking place, and sellers who price their property too high are getting a rude wake-up call to the new realities of the marketplace.
Gone are the heady days of 2007 when a seller could simply list their property at seemingly any price and they would usually be rewarded with an offer.
So what about the market for new condos? What is the market like today and what will it look like heading into the final quarter of 2008 and into 2009? I spend most of my time helping buyers enter into the pre-construction condo market in Toronto.
A new report from Urbanation, a research firm run by the folks behind Market Vision-a brokerage specializing and new developments-seems to suggest that new condos will be following the trend currently happening in the resale market.
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œWeÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢re expecting a slowdown in 2009,ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â said Jane Renwick, editor and vice-president of Urbanation, a condominium market research company.
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œSo we would say that we were at 22,000 [condo] sales at the end of 2007. WeÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢re predicting 16,000 sales to round out this year. And weÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢re expecting sales to dip beyond that in 2009.ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â
Urbanation released a report yesterday about the Toronto condo marketÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s second quarter of 2008.
Following record condo sales in 2007, she said, the market is now back to 2005 and 2006 levels.
Anecdotal evidence, evidence on the ground from my own experiences and the experiences of my colleagues who also specialize in new condo developments, suggests that the market is currently still hot. People are still lining up for condos (overnight in many cases), and prices are still rising. However, there is a sentiment that slow times are ahead and smart buyers are proceeding with caution, not just jumping into any development that comes along. If you are looking to flip a condo and make a quick profit overnight, it is probably not the best time to buy.