Monday, August 16, 2010

Toronto Condo Market Finally Tanks


“My gut instinct tells me the condo market is skewered right now,” said Paul Johnston of Right At Home Realty Brokerage, the listing agent on the project. “It’s been a hell of a year. At the beginning, we finally had buyers after a year of banging our heads on the wall looking for them. But I think this year’s deals have already been done.”

This was one of my worst projections. For years Toronto has been full of sky cranes cranking up giant condo buildings. I kept saying that this was impossible, there was no market! But the speculation was huge, and I'm sure that most condos were empty, or rented on the cheap. Everybody was upgrading their condos, signing 2 year deposits for a new condo, confident they would sell their old condo at that time, for even more money. I thought there was going to be a crash years ago. Even the 'phony recession' didn't dent it, since everybody just went into more debt with the low interest rates.

Just driving home from the cottage, there is still unbelievable construction. All those condos are 'sold' by deposit. It should make for interesting times.

-ps. cottage weekend horribly cloudy and rainy and cool. Have finally started up the barrel sauna, and we still did a lot of swimming, making the neighbours wonder about us!

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