‘Still doomed’: Toronto condo sales and prices slump yet again
Higher interest rates and lower rental demand mean many of those condos have become a cashflow-negative headache for owners, while scores of buyers who purchased years ago when values were higher are now facing huge appraisal challenges
CMHC has flagged that plunge in condo starts as one of the main reasons the housing crisis is likely to remain a hot-button issue in the coming years, even despite a flurry of measures by the provincial and federal governments aimed at spurring homebuilding.
“We’re seeing a very sharp fall in starts of new condos, particularly in Toronto,” ab Iorwerth said. “And so I’m a little bit concerned about what’s going to happen in three or four years.
“With no shovels being put in the ground in the ownership market right now, it does make me wonder if there’s a strong rebound in the economy at some point in a few years, where is all the housing going to be that we’re not building right now?”
Some larger investors have moved to scoop up Toronto condos in bulk deals this year, purchasing at fire-sale prices with an eye on a possible market recovery over a much longer term.
