Aura Construction Update
Follow up to my Aura Construction Update from yesterday, this is another shot from further south on Yonge. I write this blog post, just as the Globe and Mail reported this morning some mixed signals coming from developers and realtors in the downtown Toronto Condo market regarding future sales. I for one, have stated on this blog, that yes, there will be some downturn in sales from last year. However last year was a record year for condo sales. If Toronto was to tank 30% on condo sales this year, we would still end the year at 20,000 units. Think about how many people move to Toronto every year and that number of condos seems to be a good mix, when combined with freehold housing that is built. Last year there were 30,000 condo sales. Almost 1 for every 3 people that move to Toronto per year. That is just crazy, because that's just condo units, not freehold housing. The number was not supposed to be sustainable.
Anyways. That's just my opinion, take it for what's it worth.
Aura Construction Updates:
Globe and Mail Article
But not everyone is so sanguine. Last week I asked readers to weigh in on whether Toronto’s real estate market will rebound in the spring or whether a longer correction is under way.
One reader who has spent years watching the housing market believes that the historical value ladder has been distorted by the overbuilding of condos. Traditionally, people have climbed the ladder from condos to townhouses to semis to detached, he points out. They move from less desirable areas to better ones.
But he believes developers in Toronto have focused too much on “lifestyle” instead of “life” and there aren’t enough projects that appeal to people in all phases of life. Therefore, condo owners will have trouble selling their units and they won’t move up to single-family homes. Eventually, prices in the entire market will drop until a new balance is found.
“A correction is already under way,” in his opinion.
But then there’s real estate agent Janice Weisfeld of Sutton Group-Associates Realty Inc. She thinks the market will rebound in the spring if the weather forecasters’ predictions for an unusually snowy winter come to pass. “Too much snow and cold may be the deciding factor for the ‘empty nesters’ to finally sell their home and move into a condo,” she says.
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