Toronto Condo Market Seeing 'Acute Areas of Pain': GTA Lawyer Mark Morris

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#torontorealestate #torontocondomarket #canadianrealestate

Toronto’s Condo Market is experiencing some “areas of acute pain,” as those ‘investors’ that purchased in 2020/2021 are not able to close on (or sell the contract to) their completed properties.

Chapters

0:00 - Introduction
02:14 – Condo Market Pain
03:35 – Dog Crate Condos
06:52 – Builder Pain
10:50 – Appears Contained
12:16 – Property Mania Broken?
13:32 – 2008 Financial Crisis
18:07 – Who bought the Condos?
20:59 – Overleveraged Middle Class
23:14 – Not Mass Panic
23:32 – Intergenerational Transfers
25:16 – 2026 and Beyond
25:43 – Options Available for Investors

Links:

Toronto region condo sector sees deepening slump as sales fall 81 per cent in the third quarter:

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

Monetary aggregates:

Investors now make up more than 25% of Ontario homebuyers, pushing prices higher, experts warn:

65% Of Small Toronto Condos Are Owned By Investors:

Toronto’s rents are finally falling. Here’s why it’s happening — and how long prices could drop:

Defaulting Purchasers Lose their Deposits, Even in Rising Real Estate Markets:

Why was Canada Exempts from the Financial Crisis?:

Household Debt to GDP for Canada:

Household Debt to GDP for United States:

Mark Mitchell – Mortgage Broker London Ontario
920 Commissioners road east
London, Ontario N5Z 3J1
Phone: (519)860-2102 (Call or Text)
Brokerage Lic: 10464
Broker Lic: M16001479

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Commentary on this Channel should not be considered financial advice.
Комментарии
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As I frequently remind others, it's crucial to maximize every market opportunity. Bitcoin day trading is thriving right now, and Coach Garrett Eaton’s guidance has been incredibly useful with his precise predictions. Without a doubt, a 5-star guide!

RamzanBarysheva
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Mark brings up a very good point. The same point that I tell all my friends who complain about housing costs. Canada skipped the 2008 GFC. We were fine, but we lowered interest rates to near zero in accordance with the US Federal Reserve. Why? Beats me, but it lead people to run out, load up on cheap debt and go on a buying frenzy that drove up real estate prices dramatically over the time frame of 2009-2020. Come 2020, we once again we lowered the interest rates to near zero, instigating the nations most radical buying frenzy ever witnessed that drove real estate to new heights.
Beacuse of poor monetary policy it has caused real estate to reach heights that are unsustainable. In essence we need our 2008 moment to flush out all the degenracy and stabilize the market. Only after undergoing 3-5 years of financial pain and suffering will we see a return to affordability. Its going to suck, but people have to learn their lesson. There is no such thing as a free lunch.

cybernate
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Fantastic interview you won't get anywhere else in Canadian media. Thank you Mark(s)

frankrpennington
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Mark Morris is a stand up guy. I hope all my lawyers are as good hearted as him.

rationalevidence
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Very good interview Mark. What did your guest mean at 9:20 when he said "commercial values have already dropped by -60%?" What??? Assuming this is true, why isn't the main stream media reporting this and why haven't some Canadian banks and credit unions failed already?! Can you make a separate video about this? Thanks!

alsmart
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Thank you for being one of the few to say it was the M2 money supply and not supply chain disruption that made housing prices sky rocket.

jasonwood
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Ironically most dog crate condos don't allow pets

lindab
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I questioned his opinion of what's order and what's chaos. Order is a level of fairness and that's what's happening, pricing is coming under order. Chaos is 800k fot 600sf

InfraredVision
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I guess Canadian's never took Warren Buffetts advice.
Never leverage your primary residence, and never trade on margin.

devstatingx
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Even though this sector is only 5 to 7% of the market it will put a negative spin on future sentiment.
Like he says, it's not investors from China, it's local people who we pass on the streets.
Real estate does not only go up.

Stormshfter
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There was a very good read on better dwelling yesterday.
National bank of canada had some revised GDP numbers for 2021-2023.
Basically GDP wasnt 5.3% in 2021, it was 6%.
The economy was more overheated than we were told and we didnt raise rates untill 2022??
Also that the price of toilet paper, lysol, cannabis and liquor hold more weight in the CPI basket than transportation, recreation, gasoline and services.
In a nutshell, every data point that the BOC used to base monetary policy on was either incorrect or massaged.
They new housing would take off and did nothing.

Stormshfter
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Honestly, I personally don't see much change in the price of canadian cardboard houses. I live now in southern Ontario near simcoe. When I am checking the house prices in Brantford hamilton area, they are still unreal expensive, 10 times median household income. Everything is ok.

vlado
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No lessons have been learned, not a single one.

There are so many "investors" that are just sitting and waiting.

I will know lessons were learned when I mention RE investing and see fear in their eyes like they've actually touched the stove.

donm
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Excellent interview, this channel is a gem for understanding Canadian market.

JoseLopez-hpoo
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I know of 4 people that bought procon condo and now have closed. They all are about $1200-$1500 short fall every month. How long will they hold on? There’s a major crash coming. 😢

Bill-rz
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One of the best interviews. good work.

fairport
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Hi! Mark
Is there a way to back out before closing on a preco house.

jrantoday
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4:30 if they are that greedy they deserve to go broke and loose everything
I personally would not buy a property if I'm not willing to live there myself, shoeboxes dont cut it

berry
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Interesting insight on the challenges investors are facing!

CanadianRealEstateChannel
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"Never spend the money you don't have". "If you control debt you can control people, nations, etc." As usual good one Mark. Good Day!!

DaitsUfoma