Toronto Real Estate Sales SURGE, F-Post Calls Condo 'Market Meltdown'

#torontorealestate #torontocondos #bankofcanada

Toronto’s real estate market saw a surge in sales in October, up over 40% from the year prior – indicating that interest rate cuts are having an effect on demand – even as the Financial Post is calling the condo situation a ‘market meltdown.’

Links:

GTA REALTORS® Release October 2024 Stats:

Condo owners' pain could be condo buyers' gain, as market meltdown continues:

Toronto home sales surge 44% in October as rate cuts draw buyers back:

Toronto home sales climbed 14% in October as homebuyers jumped back into the market:

Oversupplied GTA Condo Market a Headwind for Home Prices:

Looking for blood: Condos nearing completion with mortgage appraisals less than investors paid:

Ottawa to cut immigration targets in a major policy reversal:

GTA Condo Developers Are Dropping Prices For First Time In 10 Years As Sales Slow:

Toronto condo developers see lowest new unit sales in 27 years:

Mark Mitchell – Mortgage Broker London Ontario
920 Commissioners road east
London, Ontario N5Z 3J1
Phone: [phone] (Call or Text)
Brokerage Lic: 10464
Broker Lic: M16001479

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[devstatingx]

Why does everything seem like a scam in this country. Like I'm just constantly being bent over and everyone has their hand out

[Stormshfter]

I'll say it again.
All the riskiest lending in the US happened in the 18 months before the GFC.

[markfox]

Some people feel they have no choice but to buy a property. That's unfortunate. The prices are at tragic levels. So overpriced that it's very likely to be a bad idea for the next several years. This happened in the 90s, and those poor buggers took almost 20 years to break even

[hagbard]

RBC screwed us over when we sold our house twenty years ago. They left out pages of the mortgage contract which had in it a "crawback" provision if we ended the mortgage. My wife who is no idiot (a GP) could see something was a bit off, when we said the pages didn't seem to follow from each other the agent said "just legalise". We never did receive a copy of the contract he said he'd send us. We'd never get another mortgage from them. Cost us an extra $1400 which wiped out any benefit of having transferred the mortgage to them from TD. Now won't sign anything of consequence without having it looked at by a lawyer.

[eric]

Hey Mark. So at RBC we do an appraisal by plans for yet to be built new builds. We approve the mortgage at time APS is entered into and it’s a done deal. No more adjudication. We just fund the mortgage at closing. These approvals are good for up to 5 years in some cases.

[SarcasticLittlePrick]

Standard 1 bdr condo would cost developers 100K ( average).
Selling price is 600K+, is just insane 😳

[althunder]

I'm amazed that prices haven't cratered over the last few years with these "high" interest rates. I guess we needed interest rates to stay higher for longer to have an effect on prices.

[fadybarsoum]

Please make a video on Vancouver's housing market. "The market is back to normal" here as well.

[JoseLopez-hpoo]

Condo fees are skyrocketing, most condos include water and/or hydro. Since these utilities have went up significantly, the fees are going up in lockstep. This is aggravated by the fact a lot of these condos are now multi-tenanted rentals/rooming-houses, putting pressure on utilities. If you are living alone in a condo, your likely getting clapped by subsidizing the landlords tenants usage. Furthermore renters and high volume turnover tend to destroy comment elements faster, leading to expensive repairs. When the garbage chutes are jammed with pizza boxes from the AirBNB party last night and the contractor has to be called to clear it.

[insanegixxerdude]

People have walked away from new condo builds leaving behind their deposit.

[dougpatterson]

Personally I would support the government providing support for continued construction thus driving home prices down. I say this as a homeowner who purchased about 1 year and two weeks ago. Were the median price in Toronto to come down by the purchase price of my home I still wouldn’t be able to qualify. My house was about 400k last October which was just under the median for my real estate area. Doing a comparable job in Toronto I would earn 30-50% more but not over 200% more to compensate for the ridiculous housing prices.

[mykeprior]

Guess what?
TLT is falling. Mortgage rates are going up. BoC is making things worse cutting the short end, steepening the yield curve and making our Loonie a Peso... Banks are desperate for liquidity. They're offering quite high rates now to possible clients with cash.
The moment it collapses it's all over, for ALL real estate in Canada.
10% unemployment, see you soon! Probably in 6 months.
You heard it here first.

[danielluo]

Do you think the downward pressure in condo will translate into lowering prices in other properties types like townhouses and detached homes?

in a normal ideally market I think it for sure will. But I’m Toronto. The major difference is that those condo are all have common style. Which is small and designed for single people household. So even if let’s say hypothetically a one bedroom or a small two bedroom (those one that are too small to grow a family) drop to only 600k. Home buyer might still not willing to choose those over townhouse. Which causing townhouse and above have no way to release the pressure.

Want to hear your opinion Mark. And awesome video. Very interesting market to observe.

[mujeebmufti]

Love the humor. Quality content as always ❤

[lawrencehalpin]

Thank you Mr. Mitchell. That is a great report.

[quantifiablyqorrect]

"Homeownership" is foolish in canada. You cant do qnything with your home and the only reason people buy is to expect selling for a big amount more, which wont happen anymore. You will be destroyed in interest payments too.

[dgreen]

I feel the October movement was just people jumping in thinking that home prices would skyrocket after the bigger October rate cut... It didn't, just like back in June then July and then September. Its sad that people are looking at housing more like stocks rather a necessity and a place to live... variable rates are still pretty high and fixed remain unmoved. Wouldn't be surprised if November is a horrible month and then these FOMO buyers repeat the same thing in December. Rent is coming down, inventory still high and prices are much lower than 2022, seems like supply was never the problem, just too many investors hoarding.

[kylefordinvest]

Interesting take on the Toronto market!

[joebachmeier]

Condos have to be the stupidest idea yet. Whoever holds it at the end loses.

[dskordo]

I yelled "I have people skills!" out loud.