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Eug said:
Toronto condo market loses steam as investors bolt

Urbanation, which tracks the Toronto market, reported today that the number of unsold new units hit a record at the end of the second quarter, at more than 18,100 units or about 20 per cent.

At the same time, sales of new units sank to their lowest since about mid-2010, down more than 20 per cent from the first quarter and a whopping 50 per cent from a year earlier, although last year's numbers were particularly strong. And over the course of the first six months of the year, sales are at their second-highest level ever.

Notably, the so-called absorption rate declined to the lowest since late 2008, the depths of the financial crisis.

That's because investors are dropping out, said Derek Holt and Dov Zigler of Bank of Nova Scotia.

"The not-for-occupancy investor that has been driving 45 per cent to 60 per cent of Toronto condo sales in recent years disappeared as the monthly net cash flow to financing and paying condo fees and then renting it out remains negative while rental rates and prices flatten out," they said.
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What a super awesome sign of healthy demand -- when half of all buyers have no intention of living in the units!
 
TheKingEast said:
new condo market has been a dud for a little while now. The rental market is excellent, though.
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Have been browsing this forum for quite some time but not replying to things but I can definitely tell you rent prices have risen quite significantly over the past 8 months. Especially single family condo apartments. As much as $300-500 is this legal? I was paying at Reve on Front, $1550 for a 1+1 with parking and included hydro now I'll be lucky to find anything in the king west neighbourhood under $1800.
 
What are you guys seeing in the downtown condo rental market as far as annual or monthly $/sq.ft. goes?
 
A family member just rented a studio apt (ie. small, no bedroom) for $1000 a month in Liberty Village. I'll try to find out the square footage.

As for Parkdale, I was just commenting to family that prices get a heluvalot cheaper quickly west of Dufferin, but that it's also a lot less desirable there for a lot of people.
 
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http://torontorealestateboard.com/market_news/market_watch/index.htm
http://torontorealestateboard.com/m...ket_updates/news2012/nr_market_watch_0712.htm
http://torontorealestateboard.com/market_news/market_watch/2012/mw1207.pdf

August 3, 2012 -- Greater Toronto REALTORS® reported 7,570 sales in July 2012, representing a decline of 1.5 per cent compared to 7,683 sales reported in July 2011. The decline was most pronounced in the condominium apartment segment in the City of Toronto. Total sales in the rest of the Greater Toronto Area (GTA) were up compared to the same period last year.

“Very strong annual sales growth in the first half of 2012 and an earlier peak in sales this spring compared to 2011 help explain more moderate sales this summer. New mortgage lending guidelines and the additional upfront cost of the City of Toronto land transfer tax also prompted some households to put their buying decision on hold,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price in July 2012 was $476,947 – up by four per cent compared to July 2011. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 7.1 per cent year-over-year.

2012-07: $476947
2012-06: $508622
2012-05: $516787
2012-04: $517556
2012-03: $501614
2012-02: $502508
2012-01: $463534
2011: $451436

So, GTA prices peaked in April-May, but it's still not clear if this is a long term peak or just that spring boost. All 2012 monthly prices are higher than the average 2011 prices though
 
Eug said:
So, GTA prices peaked in April-May, but it's still not clear if this is a long term peak or just that spring boost. All 2012 monthly prices are higher than the average 2011 prices though
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I guess we'll know in a couple months.

One thing though: most seasonal price dips are accompanied by a fall in inventory - meaning people are getting out of selling homes for seasonal reasons. We didn't see much of an inventory dip in July.
 
If there's a change in tides, we can definitely see it now. I'm not expecting astronomical price decreases across the board. I've already observed a decrease in inventory as well as an increas in homes selling for less than asking. That said, asking prices are still fairly high, even with a number of listings reducing their prices after a few weeks. To those waiting for the sizzle to fizzle and hoping to buy that $1M for $500k are in for a long, long wait.
 
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