Podcast 71: The State of Toronto's Condo Market

Think the condo market is crashing?
Despite headlines screaming "crash," the truth is far from it. Let's clear up some misconceptions. Firstly, the resale market is actually pretty solid right now. Properties are moving, offers are being made, and yes, deals are closing. Now, you might have heard that the rental rates aren't making sense for investors-well, that's partly true. But it's not because the market is bad; it's because the cost of capital has gone up. High interest rates are the real culprit here, squeezing out smaller investors who can’t cover their costs. But here’s the kicker: the market itself isn’t crashing. The data shows that average rents in major cities like Toronto are adjusting, not plummeting. And as for new construction projects? They're still happening, but yes, they're more expensive due to rising costs in materials, labor, and land. So, before you buy into the doom and gloom, check the facts and understand the real dynamics at play.
Schedule a 15-minute appointment to chat with me here:
www.broadviewavenue.ca/appoin...
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Subscribe now to keep updated for more information.
If you want to chat with us, do the following:
1. Send an email at [e-mail]; or
2. Send a direct message on my Instagram account below; or
3. Book an appointment for a 15-minute video chat using the link on our website.
If you’re not ready to reach out and just want to follow for more, find us online:
UA-cam: ua-cam.com/users/kennethyimhom...
Instagram: / kennethyimhomes
TikTok: / kennethyimhomes
LinkedIn: / kennethyimhomes
Facebook: / broadviewavenue
Web: www.broadviewavenue.ca
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

[@adamnarbeaux5898]

Excellent Ken, excellent. I’m Closing on 2 Nobu units in august. Need to put 40% down to cash flow even.

[@allcan4175]

funny, i never watch podcasts,but i watched this whole thing 😃

[@KennethYimHomes]

Thank you!

[@divyv20]

Hey Kenneth , very good video . I can do better editing in your videos which can help you to get more engagement in your videos . Pls lmk what do you think ?

[@winchangkou]

Flee flee flee to the south

[@Wildbore48]

There are some logic fails here, and seem to be forgetting history of other bubble pops. Rents are tied to income, so rent revenue growth will be restricted even if immigration policies stay dumb, which will cap unit prices to an extent as nobody wants to buy a unit that isn’t cash flowing, Once the recession and unemployment comes, prices will take a big hit too. And pretty sure when you get rid of the dingbats in Ottawa wrecking our country high immigration, inflationary debt and deficits and anti development policies, we can have an economy more diverse and less dependent on unproductive real estate speculation. Real estate will be a good investment, but this guy is putting it on a pedestal when it will likely struggle in Canada for a decade like the 90s as deleveraging occurs.

[@KennethYimHomes]

I hope we don't have another lost decade in real estate, you know the central bank will probably drop rates in response if it does. Anyway, let's see where it goes.
I don't think rent tied to purchase price may be as much as an issue as you think, the only reason why rent growth has slowed is because of the existing preconstruction inventory coming to market now after completion, flooding the market. When that supply gets absorbed, and with the past two years of not building, we will have a supply shortage. Eventually rents will skyrocket again.
Can't wait to get rid of the dingbats also!

[@Wildbore48]

@@KennethYimHomes Yes, preconstructions of condos have slowed but simultaneously purpose built rentals have picked up. Might balance out.