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Translation: Prices must drop, and will drop.
Urbanation Press Release Q3-2010
Sales in the Toronto CMA new condominium apartment market reached a total of 3,805 units in Q3-2010, down 24% from Q2-2010 (4,991 sales) and 18% lower from Q3-2009 (4,617 sales).
New sales in Q3-2010 were the lowest third quarter total since 2005, and marked the third consecutive quarterly decline. There are now 275 projects and nearly 70,000 units active in the new market, of which 81% are sold.
Another noteworthy statistic from the third quarter: Completions reached a record level in Q3-2010 with 6,956 units commencing occupancy.
Coming off a record quarterly performance in Q2-2010, the Toronto CMA resale condominium market lost momentum in Q3-2010. The 3,646 resale transactions in the third quarter represented a decrease of 28% from Q2-2010 (5,076 resales), and a 25% annual decline compared to Q3-2009 (4,854 resales). The average resale index price in the Toronto CMA remained essentially unchanged for the second quarter running, increasing 0.4% to $372 psf in Q3-2010. However, compared to one year ago, the average resale index price was 10.1% higher in the third quarter (Q3-2009 - $337 psf).
^Just take a look around a "VIP" broker preview, so many Asians and M.E.'s it's not even funny. You know something nuts is going on when zero locals are buying. Look what happened to the Vancouver market....
Young people buying? It means they were late to the party.
Fools and their money....
I wonder if we can get some accurate stats on who is buying and at what price point.
^Just take a look around a "VIP" broker preview, so many Asians and M.E.'s it's not even funny. You know something nuts is going on when zero locals are buying. Look what happened to the Vancouver market....
I agree if it is true. Even so, does not mean an imminent ajustment however it does place the whole market at significant risk. However, I seem to recall a poster saying a number of his friends bought in the past month. Young people. Not sure if they were Asians or M.E.'s but I gather they were people here.
I wonder if we can get some accurate stats on who is buying and at what price point.
I guess you mean me? Yes, they're all local and no, they're not Asian or Middle Eastern.
This is Toronto, we have a large Asian and Middle Eastern population. While I don't doubt that there are a lot of foreign buyers, you can't just take a look at the racial makeup of the people at a broker event and determine that who's foreign and who isn't.