Things Are Getting So Much Worse For Condo's (GTA Condo Real Estate Market Update)
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- Опубліковано 21 тра 2024
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In this episode we take a look at the current GTA Condo Markets - Toronto, York Region & Peel Region for week ending May 15, 2024. We also discuss what feels like a massive problem with the types of condo's that are currently sitting on the market.
This video will focus specifically on GTA Condo Markets - Toronto, York Region & Peel Region but be sure to SUBSCRIBE for more reports on other areas!
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Santo Sessa & Daniel Sessa
Re/Max Premier
(647)560-7778
santo@teamsessa.ca
*This video, nor any of the other videos on the Team Sessa Real Estate UA-cam channel, does not constitute legal or financial advice. This is strictly intended for educational and entertainment purposes only.
Appreciate your realism. As a young person looking to start my family, the wife and I aren't even considering condos. We'd rather leave the province or country.
Sad reality of the Trudeau destruction of Canada
Dont buy a condo especially if you have kids. Rules cam be very strict. In my complex, people with kids get complaints all the time due to noise factors etc
Couldn't agree more: the condos in Toronto are primarily trash. So much concrete, steel, copper, and so many other valuable manufactured products dumped into garbage buildings made for speculators. This is what happens when we have weak and corrupt governments, broke municipalities, and insatiable greed.
On another note, when is anything gonna cross that Eglinton Crosstown 😂😂😂
I’m leaving this broken country, housing prices are pushing people out.
I agree. Plus bad quality of life !
Only problem is liberal money printing has ruined the value of our dollar outside Canada.
We should move to Texas. Open carrying is permitted.
For all of you who don’t like living in Canada for whatever reason. See ya. 👋
@@relaxgood5214 Agreed.
The only way to control inflation is by eliminating income fraud in Canindia
The reason new condo units used to sell out quickly to investors was because Toronto condo developers travelled to China to sell the units to rich Chinese investors. These investors got first dibs and oftentimes would buy up most of the units in the building. The condo units were never put on the Toronto market for everyday people to bid on. Globe and Mail wrote an article about it a few years ago, "Toronto condo developers head directly to China to court buyers" (September 2015). Sorry for not adding the link to the article, UA-cam no longer allows it.
You're right. They had presentation centres set up too. Then you wonder why this country is a mess.
Does MONEY LAUNDERING ring a bell???
@@markz1013after seeing Chinese RE crash 40% in prime areas since 2021 and 60-80% in non-prime areas it shows how big a gamble chinese RE investors took
If Canadian RE is built on that gambling mentality how vulnerable is Toronto and Vancouver RE?
@@walterpen371 No! We dont do that! We are clean. Our banks are clean. (*until they try to expand into the US market and get caught*)
The same thing happens with the local Chinese here they buy the entire apartment complex and townhouse complex. One person. Just look up who owns all of them in the records on Young Street.
Why no ones talk about adding that maintenance fees scam factor associated with condos…. That was the major show stopper for me when i was in the market ti buy one
Yes. Where I live, we pay 500 a month and we have an assessment coming up. Each unit has to pay 5 grand for new decks to be built.
I work in construction labour industry, and every time I go to the new construction site I get shocked myself to see the downsizing of the units from time to time and the higher price
range.
Yeah, hardly swing a cat in those shoe boxes.
I agree. Condos are too small. Units are often cheaply built. Maintenance fees are too high. Mortgage rates are too high. Airbnb ruins a building. So many reasons why a fire sale must happen soon. I will not buy until all the above is affordable again. Prices must come down to 80k again for one bedroom shoe boxes.
I don’t make predictions but I don’t think a 1 bedroom condo will ever be reduced to a purchase price of $80k. Maybe come down by $80k but not purchased for that.
Keep renting. Owners need tenants who are set on never buying.
The tsunami is starting to be felt.
Panic is setting in.
Today the usa re vloggers are talking about fire sales in Florida,
China's market has already almost completely collapsed...
it's spreading like wildfire !
But still; will the relatively low supply of houses in Canada be enough to keep the market from crashing?
In my opinion, it is not the relatively low supply that is going to keep us afloat. That is an engineered problem. Engineered by the fed gov (with totally irrational immigration/newcomers targets).
Well, after a year or two of calling anyone who dared to question their policy, a racist or bigot, they finally reversed their policy and that is the beginning of the end (of low supply and RE bubble in general). Unless the interest rates go down to zero again.
...those fire sales are happening in part because Florida is also experiencing an exodus, to other southern states
Condos are trash! Very few exceptions. I've been a few nice Penthouse units. Taxes, condo fees and mortgage. Save a bit more and hold off for a freehold!
Fire sale for all those condos under 700 sq feet! 50% off in a year!
Some are so bad .. that I dont think they are worth anything. Thank God we have endless stream of international students coming into our cities.
@@Peter-sz1sn 41% less international students coming into Ontario for 2024-2025 year
I’m waiting for condos in Yorkville to be at 90% discount. I heard people on here say that will happen soon. What do you think?
@@f87 that wont happen. 30% discount would be a good start.
@@f87 Don't hold your breath, mate.
Such an informative video. Thank you for sharing this valuable information about the disconnect between investors’ needs and end user needs.
Our pleasure!
If the prices are higher than prices of houses with huge lots in other countries, maybe there is something wrong with this crap here and people should think twice before jumping in
Heard of location, location, location? Nobody wants to live in those places with huge lots, nice as they are.
@@andrewmccoll1582 Maybe because nobody can afford them.
Your comments certainly ring true. I'd add to those observations with some of my own. Some of the investor condo unit designs are quite obvious, such as fitting 2BR+1.5 Bath in a 500-650 Sq ft space, to minimize cost; using sliding dividers as moving walls for one of the "bedrooms"; investor condo units on the market are usually without upgrades, using the bare minimum offered by the builders, which means the units are not a pleasantly furnished space and all the materials used are "rental" grade; and lastly horrible layout such as a long narrow hallway or one of the two bedrooms that can barely fit a twin sized bed.
And when it comes to the cost of ownership, even looking at some of the older condos, the ones that were built for living and not for investing and renting, I notice that the price of the monthly maintenance cost are starting close to or above $1000/month for a 800-1000 sqft unit for example. The newer ones, even when new, will probably start around $700 to $800/month. With inflation increasing in the near future, these monthly maintenance will keep heading upwards as condo buildings gets older, and labour and fixtures and everything else are getting more expensive. Whereas owning a home, if the homeowner is tight for cash, can delay some repairs by choice. Condo owners don't have that luxury when it comes to the maintenance fee.
Even though those could impact a buyer's decision on closing the deal on condo units, there are some downtown Toronto condos, where their location are just superb if the owners love the downtown vibe and work in the city, and if the condos are connected to the PATH network, those are just convenient to getting around in the core. So I wonder if some condos will sell well even if the overall market is down?
In any case, I have had friends who mentioned that living in a house, with all the repairs needed, cost just as much as living in a condo even with a high maintenance fee on an annual basis. Any comparison of those? I guess you can't use two extreme cases to compare, but lets say for a family of 3 - 4 people, how do the cost of ownership compare between detached, semi-detached, and condos?
The never understood Canadian economics and Canadian reality, and the greed of city development, and top it off with piegon holes no one can live or raise a family. The condo will bring the market to reality.
Your content is fantastic! A real estate agent that actually speaks facts! The condo market is in for a a very very rude awakening! 800sq ft should cost no more than $350-$400k... Lets let the laws of supply and demand finally take hold of this make beleive real estate market! Everyone wins if prices come down, specifically business that is paying astronomical wages!
Get back to building the condos first. Then offer them for sale. This will eliminate speculation
Too late
70% of all condo units already sold to RE speculators
Lots of them struggling to get mortgage approval now leaving the builders the opportunity to sell the RE speculators for losses and trigger recourse loans and more forced sales in 2024-27
We’re only in the first inning so plenty of action left as dominoes have started falling
Quite informative, as a lay person, I learned somethings about the condo market. Well produced and good channel thanks .
Glad it was helpful!
For a condo project to start, the developer need to sell 75% to qualify for financing. Without investors buying in these projects due to interest rates and new tax rules , many condos projects got cancelled. Taking into account the number of immigrants coming yearly to Ontario and the projects cancelled, there is a housing shortage to be expected in a few years.
All those waiting for a 2 for one deal, go to Freshco or Walmart for a deal.
Also want to add that another reason investors are not buying condos is because they don’t want to rent and risk a bad tenant. If an investor has to pay around $4000 a month to cover mortgage, taxes, other fees then that’s $40,000 for 10 months due to a non paying tenant.
Exactly I Agee 💯
Totally wrong. Lets say nobody buys means all those construction jobs will be lost. that means they need to leave Canada (or move to parent house) which means now there will be a lot of housing which will be cheap. Since there is no jobs immigrants will also not come. Since population is going down other industries will also suffer increasing unemployment further and people moving out.
House prices will go downhill and eventually comes to a point when it make sense to live here again due to lower cost of living. (Everything is cyclic.)
I don't think government will reduce interest rates since inflation is high.
Reducing taxes will also not be possible - Health care, Social security, School everything need a lot of money.
@@leetcse Immigration will keep going. Check stat Canada figures:
2022 - 2023 468,817
2021 - 2022 493,236
2020 - 2021 226,314
2019 - 2020 284,153
To sustain the economy in the next 20-30 years, Canada needs immigrants. The Canadian birth rate is not high enough. Most of the immigrants want to live in Vancouver and Ontario (GTA). Canada is not bringing immigrants because they they are being nice, it is a necessity to sustain the economy in the future.
Investors who bought 4 years ago for renting the unit decided to sell the unit after completion due interest rates but mainly the LTB (Landlord Tenant Board), 1 year to evict a non paying tenant, several years ago it took at most 2-3 months. Renting is not a viable business anymore, very very risky, thanks to LTB. We will see what happens when this inventory clears, however it takes.
@@user-bp8ie1cs4p Immigration is being dialed back substantially for the next few years. 41% less international students being let into Ontario beginning this September. Yes nobody wants to be a landlord anymore, but still rental prices are coming down. That means landlord are being forced into renting for whatever they can get, because the other options of not collecting any rent or selling their property at a loss is worse.
All those studios and 1-br in glass point towers are in for a major correction.
If the tiny shoe box condos become 50% off I'll consider buying two of them if it would be possible to connect them somehow which to make one useable unit.
Yeah, the second part of your statement is the key (to be able to connect them).
Two of my friends are trying to sell their condos now due to relocation. Great layouts and square footage, 2 bedroom, great for families.. still on the market with no movement :(
Then they are probably overpriced
Share the MLS please
No showing either. The demand is dead since Trudeau banned the foreign buyers and the Boc increased the interest rates. Canada = 🗑️ !!
Santo, let me know when there's a 2 for 1 deal. Preferably side by side so I can crack the wall open. 😂
They won't sell otherwise 😮
I won’t buy until it goes to $100 per square foot.
Your very right. I live in a condo and every unit that is being sold in my complex is families compared to 15 years ago when I bought the condo, it was singles and couples. New rules had to be made because its become a kids playground on the common elements
always good info..ty
Additionally post pandemic people go only once or twice to office so why shouls they live in match box accommodation
That’s how it is? years ago, lots were 50’ and 60’ , now you get homes on 35’ and 28’ or less. Buyers have to adjust since this is what is being built. A buyer wanting a 1000 sq ft condo to raise a family then the price is much higher and they need to pay much more.
You get what you pay and buyers need to face reality.
A condo can be converted into a family oriented unit by combining units. My friend that retired and downsized in Vancouver bought two units for a total area of 1,500 sq ft. Beautiful V-shaped layout which made the condo feel like a house.
I haven’t heard of that, combining 2 condos, here in the gta. My first thought is, one condo is already expensive, 2 condos seems cost prohibitive. My next thought is, structurally speaking, would it be allowed?
@@teamsessa My friend bought presale so the Developer had flexibility in changing the layout before construction. Combined units are for well off retirees that want to downsize from their house but not too much that they feel constrained in a condo
@teamsessa Structurally it's fine, there’s no Structural element in a unit separating wall, changing the definition in the articles and with the city would be the challenge
Maybe buyers can now easily see the previous listings (e.g. housesigma) and don't agree to pay 30% vs 2 years ago
Got to see it to believe it. Price are still holding strong.
Surprisingly, they are. Denial is a powerful self-destruction. I hope I am wrong!
Yes. Price is holding strong. I won’t be bearish until I see
@@cristJUNlee By then its too late..
I don’t have a property I’m a buyer so that would be good for me lol
Kevin O’Leary predicted Toronto would go the way of downtown Detroit with condos being abandoned due to their upkeep cause they were built so cheaply..I got out in 2018 at top dollar..you are correct, people want apartment style homes, it’s what’s being built in more populated cities around the world and it works, 3-4 bedroom spacious apartments where you can actually raise a family, theres too many multi million dollar homes and too many small condos, those condos should be 150-250k max..it’s a runaway train..
Rate cut is on the horizon it will bounce back then
Doubt it, the incompetent BoC wont until US and they are in no rush with 30yr. Mortgage
I hope not. Condo is an apartment with fees, Relators sure sold Canadians a BS investment.
Are people selling before the new capital gain starts in June?
All the condos being built in the last 10-15 years are nothing but shoe boxes. Terrible designs. No room at all. Open plan is just a way to reduce square footage while the price per square foot goes up.
I bought my condo in 1993. 1530sq ft. for $188,900.00. New condos by Tridel at 1200 sq ft are selling for $1.5 million!!! That is f*cking nuts! Mine is valued at $888,000.00 and has a far superior design to the garbage they are producing now.
I wanted to sell & buy something a little smaller way outside of Toronto. The prices all over Ontario are nuts. They want Toronto prices for poor quality and terrible layouts. So I can’t move. I cannot unlock my equity and move to something a little smaller because prices are too high and the designs suck.
I feel sorry for younger buyers. It’s impossible for them to buy anything.
If some think that it’s greener on the other side they are sadly mistaken. I have friends in Switzerland. They can’t afford to buy a house. They have to wait for parents to pass away so they can inherit.
Moving to the USA is a terrible solution. America is falling apart. Homelessness in every major city. Crime, gun violence, public education sucks. Just send your kids to school could get them shot!
Europe is not a solution either. Too expensive hard to work there.
What this country needs is lots of homes to be built so the market turns from a sellers market to a buyers market. We need equilibrium in the markets again. Real estate markets need to move back and forth from a buyers to a sellers market. Sadly it’s been a sellers market for the last 25 years. That is the problem.
"What this country needs is lots of homes to be built" - who will shell out money to build homes in this dyeing market?
Agreed. I wouldn't l live in one of those mean modern condos with no kitchen.
Press play- Santo-“Nobody wants these condos folks! ” LOL this tickled me
True. Not worth it.
The problem is the condos at the current interest rates are cash flow negative BIG TIME. All the speculators who bought them and were renting them out at a loss each month are now renting them out a BIG loss. Real estate correction Canada badly needed.
Finally the developers got the reality of they life, building shoeboxes was design for single people, or a couples, but not for family ,
Impossible to raise a family in 600 square footage, Toronto prices ‘ll have to drop its over priced, and will follow Vancouver although Vancouver is much smaller than toronto , so there’s not much land to build on , so prices will remain high, or moved to the suburbs ,
In hongkong a 500 sq ft is a 3 bedroom unit
Stay back until you start hearing or reading the bank’s whining. Pain equals gain for others
No Reason to buy...wait another yr
condos are 500 sqft starting prices and high maintenance fees.
Santo, we need more condo news.
Too bad we didn't build housing instead of "investment" boxes in the sky. Most of those downtown condos aren't livable on a long term basis. Real investment contributes to the community -- add jobs, innovate. Parking money is a drain on our society. Hope they all lose their shirts.
What do buyers want that the condo market isn't providing?
Space, and less maintenance fee. I don't need fancy amenities, just parking. More low to mid rise
Space
Parking, front hall closet. Gas stove, full size fridge, kitchen island counter.
Less costly amenities/greenspace.
400 sqf condo for 700k .....😂 You should be insane to do this! With such size living space you can forget about kids...Basically about any family. Plus morgage payments crazy .
Even after u pay off ur Condo monthly maintenance fees is 800$ and up up up every year.
$800 maintenance fee? Your thinking of big 2 bedroom units. If you want lower maintenance fees get a 1 bedroom
@@thunderbird4709 immigrants have more testerone, higher sperm count and higher birth rate 💪 one bedroom won't do it.
Condo fees and special assessments will break you in two.
The builders aren’t listening to us. We don’t want to live in those shoe boxes, with the ugly wall kitchens and exorbitant prices.
Here comes the CRraashhhh.. go baby go.. now's the time for buyers to shine
Yesterday was the best time to SELL, today is the second best, tomorrow will be worse.. 😅
Those who purchased a property to live in (and were caught in the craziness over the last few years) - I feel bad for them. They should blame the government.
For everyone else - too bad!
@@Peter-sz1sn yes those are the only ones I feel bad for. Other gambled and speculated and hey it comes with extractly this risk so embrace it.
People with your mentality will never buy and miss the market. It’s like waiting for AAPL apple stock to drop below $25 before investing in it.
@@user-bp8ie1cs4p and people with your mentality are real estate professionals or I wouldn't call them "professionals" but workers cause they're not very professional.. 😄
Lol keep dreaming.
they are awful that is why...they all look the same..it is all about the stupid glass doors in the bedroom. people used to buy Condos for something to do on a weekend NOW because they are way to expensive no one wants them.
Every home and business should install a rain water collection and storage system along with solar panels and an electric vehicle charger in the garage.
Even in areas where rain is infrequent it is crazy to waste the little rain that does fall and waste it.
We need to stop planting green lawns and switch to local native plantings around homes.
It is crazy to plant lawns and build golf courses in dry desert areas. We waste too much water and electricity.
the future is electric. Wind and solar energy along with electric vehicles are the future. Stop using fossil fuels. There is a climate crisis.
Wow you are bearish. I trust your info because you have been cautious for awhile. With interest coming down are you still bearish
Interest rates dropped in the US in 2008 and US RE still crashed in 2008-11
Why would Canada be different in 2024 when Canadian RE debt per capita is way worse than 2008 US?
Interest rates control the variable rates, but they they do not control the bond market (which "controls" the fixed rate).
@christJUNlee interest rates dropping means the economy needs to be stimulated meaning it's in the gutter. If people don't have jobs, money, and stability, home prices are gonna fall.
Fair point. But Im slightly doubtful that we will have full fledge recession. Our employment although getting worse, it’s still not too bad
If we don’t have recession, we won’t see re crash
Aawwww poor billionaire builders 🥺🥺🥺, their cost went up ☹️☹️☹️.. awww I feel so bad about their cost while they make obserd profits building condos that NO CANADIAN WANTS!!! 😢😢😢 so sad.......😐
And that, ladies and gentlemen, is an example of sarcasm.
all these people comment...as yu ask them to..and you never respond
Emd of 2024 beginning of 2025 prices will be down 20%
Most realtors believe that entry level studios have a 500k floor
Overpriced by 30% for tiny cages
You purchase a condo to sell even ifs for you
What a mess
wake me up by 2025
Invite the worlds problems you get the worlds problems.. little gaza toronto
Canada sells a dream of developed country. So yes, no one comes here to live in those condos with high cost of living and away from their homeland. Canada’s greed is coming to an end.
Time to push the reset button:)
Condos are the biggest scam...... Its apt. living with a monthly mortage payment PLUS monthly condo fees which are a scam in themselves. 😂
Impossible to buy freehold in Toronto unless your a multimillionaire. Freehold is a bigger scam in Toronto. Only becomes affordable in London or Windsor
Dont buy... prices will go lower
What's funny is prices are likely to skyrocket out past 2025 as no new supply comes on the market....... how many tens of thousands of bear posts do you see on these channels..... and ya know what, prices still aren't down (they are basically flat for the last 2 years)
You've been saying to the moon for those 2 years. That hasn't happened either.
@@markz1013 100% false, i said it was gonna flatline for 2 years minimum to prob 4 years..... condos go in cycles (aka when a bunch get built and then nothing gets built).... and we are already more than halfway thru the 'downside'..... as people realize that supply is dropping to 0, prices will do what they do.
GTA already tracking to selling only 5k unts/year total..... which means no new supply.... when there should be closer to 50k units sold (and so eventually built).
Greenbean is correct, new condos in the market today were being constructed 3-4 years ago. And now when you have less projects due to cancellation, what do you think will happen in 2-3 years? And where are you going to house the thousands of immigrants coming to Ontario who want to live in GTA?
Keep in mind also that the number of rental availability is diminishing, this is because of the problems with LTB. It takes a year at least to evict a non paying tenant and landlords are leaving this business. So if you are a tenant, there will be rent increase due to the shortage - supply and demand.
Well, they're clicking in thousands, and this channel has subtly shifted towards catering to the bears. Bears prefer to hibernate in their mom's basement, clicking, commenting, and hitting the bell. Apparently, bears make better followers, making the internet officially a bear's market.
Just check the latest clickbait titles: 'Seller's Problems Keep Getting Bigger,' 'Things Are Getting So Much Worse for Condos,' 'Don't Count on the Bank of Canada to Save You,' 'These Condo Prices Don't Make Any Sense.'
LOL, the propaganda is real.
@@essentialpassion Most of mainstream media is bullish real estate all the time. Millions of dollars are spent every year by the real estate industry to promote buying and selling of houses. The few you tubers that are producing bearish content are the minority.
Within reason, I still say that you are better off paying a mortgage with condo fees rather than renting.
Firstly, a LOT can be said about having your foot for the first time in the housing market. Even if it's not optimal. Got to start somewhere and boy am I grateful that I did when I did not have a clue!
Secondly, not everyone raises a family. Some live alone or in couple, sometimes, the kids are grown up, on their own and you just don't want to maintain a cottage anymore. Sometimes, you just rather city lifestyle over driving back and forth to Suburbania. There is a market for condos.
Obviously, don't overpay for a ticking bomb waiting to go off. But then again, don't rent a roof leaking slump that smells mold and bed bugs. Everything else being equal, I'll take the condo.
Should I ever downsize back to condo, I'd personally stay clear from those towers with all the bells and whistles that drives up condo fees like mad. I don't need a pool, a spa, 24h security agent and all the rest. Give me a set of stairs and decent management of the building maintenance and I'll be happy.
your comments are lop sided; 90% of the condos languishing in the market are the 500 sq ft 1 BR / studios.
Comparing condo prices requires looking at unit size, view, quality, neighborhood, and amenities. Comparing weeks with different types of units (e.g., 1-bedroom vs. luxury units) doesn't give a true picture of price trends. Also, market labels (seller's, balanced, buyer's) can be misleading. For example, a buyer's market with firm seller prices doesn't mean buyers get deals, and a seller's market with motivated sellers can benefit buyers.
I believe the condo market isn't in trouble but is poised for a significant surge in 2026 as interest rates drop and competition increases. Developer project cancellations now will drive future price increases."
They don't even know how to spell condos
When you move from a purchased condo to a house, there are a MASSIVE amount of moving fees, taxes, lawyer fees, realtor fees, etc etc etc. Buying a "starter home/condo" is a scam that only morons fall for. Save and buy your dream home.
assignments it’s not worth buying those ones you get a better buck and older style condo for a lot more square footage than these new assignments
Condos are 50 percent over priced
At least!
@@markz1013 Im in agreement! 😛
Long term condo ownership is dead, taxes and fees are far too high to be sustainable
This means rent will drop
Good luck!
Smells like. big opportunity